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  • Bitcoin ability to defend the bullish flag pattern support will determine how far recovery goes towards $8,000.
  • Bitcoin longs traders must decide to focus on longer time frames while ignoring short term price actions.

Bitcoin is trading above $7,200; a level a bit higher compared to Monday’s low around $7,197. The price is inclined towards the downside, making recovery a hard nut to crack. The short term ascending channel is providing immediate support.

It is apparent that a break below the channel support would stir declines below $7,000. Besides, the downside move could increase the impact of a bearish pattern trend continuation. In this, the Bitcoin futures contract could re-explore the levels towards $6,500 (November support).

XBT/USD daily chart

XBT/USD Price Chart
XBT/USD Price Chart By Tradingview

Meanwhile, the immediate upside is facing resistance at $7,300. Marginally toward the north, the 50-day Exponential Moving Average is standing in the way of movement. Moreover, gains targeting $8,000 will have to deal with the resistance at EMA 50 before assaulting the congestion of sellers at $8,000.

As long as the 50-day EMA stays below the 100-day EMA, Bitcoin will continue to grind towards key support levels. Similarly, the Relative Strength Index is pointing south toward the oversold. However, the falling triangle pattern suggests that a reversal in around the corner. The movement towards the 70 could easily see Bitcoin trend above $8,000 as the focus shifts to $9,000.

From a long term perspective, Bitcoin is readying for a significant breakout. The breakout requires that bitcoin longs traders focus on longer timeframes and ignore the short term up and down price actions.

XBT/USD Price Chart
XBT/USD Price Chart By Tradingview, BitMEX

BitMEX Index price: $7,296

Volume: $1.7 billion

Open Interest: $640 million

RSI: Impending reversal hints Bitcoin surge towards $8,000.

Trend: Bearish short term.

Summary

Can Bitcoin Defend Channel Support And Push Above $7.5k – BitMEX Margin Trading

Article Name

Can Bitcoin Defend Channel Support And Push Above $7.5k – BitMEX Margin Trading

Description

Bitcoin ability to defend the bullish flag pattern support will determine how far recovery goes towards $8,000.
Bitcoin longs traders must decide to focus on longer timeframes while ignoring short term price actions.

Author

John Isige

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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.

Disclaimer
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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John Isige , 2019-12-03 08:47:48 ,

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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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