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BTC shorts are soaring as their value crosses its highest point since the October 25th BTC surge in the market at $8,145. Despite the bearish indicators on the charts signaling a possible drop towards the $5000 regions, bulls remain confident of retaking the market as RSI drops to yearly lows.

BTC fell below $6,700 USD, entering the oversold levels, with the relative strength indicator currently oscillating at its lowest point since November last year when the price dropped from $6,200 to $3,000 USD levels.

BTCUSD Shorts on a Steady Rise as Spot Price Dips

Bitcoin (BTC) is currently trading at $6659, with the daily charts signaling a possible extension of the current bear run deep to the end of the year. The dip has seen the price of BTC/USD shorts soar to highs last seen before the President XI’s embracing speech on blockchain on October 25. Despite the sharp increase above $8,800 USD the shorts have seen a sharp drop to $8,100 support levels.

btc short

A Bullish Stance?

As BTC’s price drops towards the $6000 region in light of the recent 10% day drop, bears may be losing their strength in the market as the value of shorts failed to crack above the upper resistance level at $9,864. This has seen BTC perma bulls predicting a possible short squeeze on BTCUSD shorts, and a possible reversal in price if price breaks below major wedge support.

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BTC/USD Oversold Levels at Highest Point in a Year

A quick glance at the BTC/USD daily charts shows a threatening future for BTC bulls in the coming days as price shortly crossed below support at $6557 setting a lower support at $6,500 USD. A close below this point will spell doom for the pioneer cryptocurrency as the price looks ripe to drop below the $5,000 level.

btcusd

However, the RSI is at its lowest point in a year signaling a potential exhaustion of the bears in the market. Furthermore, a spike in daily traded volume seems to show increasing interest in the market. Can bulls hold off the $5,000 region?

Images from TradingView

Summary

BTCUSD shorts surges as perma bears push BTC below $7,000

Article Name

BTCUSD shorts surges as perma bears push BTC below $7,000

Description

BTC shorts are soaring as the value crosses its highest point since the October 25th BTC surge in the market at $8,145. Despite the bearish indicators on the charts signaling a possible drop towards the $5000 regions, bulls remain confident of retaking the market as RSI drops to yearly lows.

Author

Lujan Odera

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Coingape

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Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.

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The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.



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Lujan Odera , 2019-11-25 10:26:39 ,

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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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