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Bitcoin Weekly Forecast: BTC Aiming Key $6.5K Support

  • There was a sharp decline in bitcoin below the $8,000 and $7,500 supports against the US Dollar.
  • The price is currently correcting losses, but remains at a risk below $7,400.
  • There is another breakdown pattern forming with support near $7,240 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The price is currently trading below the $7,500 resistance and likely to decline further.

Bitcoin price is trading in a strong downtrend below $7,500 against the US Dollar. BTC is likely to continue lower towards the main $6,500 bearish target.

Bitcoin Price Weekly Analysis (BTC)

This past week, bitcoin started a nasty decline below the $8,000 support area against the US Dollar. As a result, BTC price gained bearish momentum below the $7,800 support and the 100 simple moving average (4-hours).

It opened the doors for more losses and the price even declined sharply below the $7,500 support. Moreover, the price tested the $7,000 support area (the first bearish target as per the medium term outlook).

Finally, the price spiked below $6,900 and a new multi-month low was formed near the $6,776 level. At the outset, bitcoin price is correcting higher and recently traded above the 23.6% Fib retracement level of the last decline from the $8,213 high to $6,776 low.

However, the upward correction is facing resistance near the $7,400 level. Additionally, there is another breakdown pattern forming with support near $7,240 on the 4-hours chart of the BTC/USD pair.

If there is a downside break below $7,240 and $7,200, there are chances of more downsides in the near term. In the mentioned case, the price is likely to break the $7,000 support and $6,800 level. The main target for the bears seem to be the $6,500 support area.

On the upside, the price must break the triangle resistance and $7,400. Besides, the 50% Fib retracement level of the last decline from the $8,213 high to $6,776 low is near the $7,500 level.

The key resistance is near the $7,550 level and a connecting bearish trend line on the same chart. A clear break above the $7,500 and $7,550 resistance levels could set the pace for more gains.

Looking at the chart, bitcoin price is likely setting up for another breakdown below the $7,200 and $7,000 support levels. Conversely, a close above $7,550 is needed for a correction towards the $8,000 level in the coming days.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly moving in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now recovering, but it is well below the 40 level.

Major Support Level – $7,000

Major Resistance Level – $7,550

The post Bitcoin Weekly Forecast: BTC Aiming Key $6.5K Support appeared first on NewsBTC.

NewsBTC , 2019-11-24 04:28:31 ,

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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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