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Bitcoin (BTC) has continued to consolidate around its key near-term support at $8,000 and both its bulls and bears have remained deadlocked as it fails to gain any decisive momentum in the time since its recent drop down to its current price levels.

Analysts are now noting that Bitcoin is currently trading at a key trendline that could significantly influence its near-term price action, with a break below it potentially leading to further losses.

Bitcoin Consolidates Around $8,000 as Bulls and Bears Remain in Deadlock 

At the time of writing, Bitcoin is trading down marginally at its current price of $8,150, which marks a slight climb from its daily lows of $8,000 that have been visited on multiple occasions over the past several days.

Although this price level does appear to be a strong support region for the cryptocurrency, its slow grind downwards that has ensued in the time since it lost the upwards momentum that was gained during its meteoric rally to $10,600 may point to an underlying weakness amongst the cryptocurrency’s bulls.

Analysts are noting that Bitcoin may still be able to post a decent rally so long as it is able to hold above its key near-term support level, but they are also noting that a break below this level could spark a sharp sell-off.

The Crypto Dog, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet while referencing the chart seen below.

“$BTC at daily support. I expected a bounce before now, but not stressing (yet). Above POC – bullish. Below – re-evaluate,” he explained.

Reaction to Parabolic Trendline May Give Insight into BTC’s Future Price Action

One important factor to keep in mind is that Bitcoin is currently trading at its parabolic trendline, which could spark a massive movement in either direction, depending on whether BTC’s bulls or bears prevail in their current battle.

Mr. Anderson, another popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, telling his followers that a hold above this trendline could spark an “explosive” movement, whereas a dip below could send BTC reeling significantly lower.

“$BTC: back for a retest of the previous parabolic trend line. As discussed over a month ago… A weekly break of this diagonal will likely bring on a new “playground” for PA. Whereas as a hold can lead to explosive behavior and continuation within this level,” he explained while pointing to the below chart.

The coming few hours and days will likely determine where Bitcoin trends for the coming weeks and months as 2019 draws to a close.

Featured image from Shutterstock.


Cole Petersen , 2019-11-20 23:00:57

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.


While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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