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After a brief period of consolidation, Bitcoin has once again made another downwards movement that has led it below its previous support level at $8,000. This latest bout of downwards momentum has opened the gates for significantly further losses, assuming bulls don’t step up and propel BTC higher.

One prominent analyst is now noting that a failure for BTC to maintain above its last-ditch support level at $7,700 would likely lead to a sharp and swift drop into the $6,000 region.

Bitcoin Cuts Deeper into Late-October Gains as Bears Roar 

At the time of writing, Bitcoin is trading down just under 6% at its current price of $7,670, which marks a notable retrace from its daily highs of $8,300 that were set yesterday during a fleeting rally that came about after bulls attempted to build some upwards momentum.

Previously, BTC had bounced on multiple occasions after tapping the $8,000 level, signaling that this was a strong support region for the cryptocurrency. Today’s sharp movement to below this level, however, signaled that bulls have retreated from this level and may mean that further losses are imminent.

In the near-term, it is imperative that BTC closes above $7,700 or else significantly further losses could be imminent.

DonAlt, a popular cryptocurrency analyst on Twitter, spoke about this in a recent tweet, noting that a failure for it to close above this level could spark a sell-off that sends it to $6,900.

“$BTC update: This is why I don’t knife catch below a level that should’ve held in the first place. Waiting for the daily close to see if we can at least reclaim $7700. If not I’m personally looking at $6.9k,” he explained in a recent tweet.

Analysts Agree: Close Below $7,700 Could Spark Sell-Off to $6,000 Region

DonAlt is not alone in his analysis, as Josh Rager, another popular cryptocurrency analyst on Twitter, recently explained that he believes a movement to the $6,000 region could be imminent if bulls aren’t able to step up and push the crypto higher in the near-term.

“$BTC Update: Bitcoin price at a key area with monthly support area at $7725 and the current VWAP (Volume weighted average price) is at $7717. This marks more of a realistic value for Bitcoin & I’m hopeful as long as price stays above $7700 – if not, I see price hitting $6ks,” he explained in a recent tweet.

The coming few days will likely offer analysts and investors alike significant insight into where the markets are heading next, as its daily close today could set the tone for where it trends for the weeks and months to come.

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Cole Petersen , 2019-11-21 21:00:23

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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.

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

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