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Ethereum dominance remains in a strong uptrend. We have yet to see any signs of weakness despite the overbought conditions that Ethereum dominance (ETH.D) is trading in at the moment. The market could see further short term bullishness which would be very promising for cryptocurrencies like Ethereum (ETH) that have broken key trend line resistances against Bitcoin (BTC). Ethereum dominance (ETH.D) is trading above the 200 day moving average at the moment and is showing no signs of backing down. Meanwhile, Bitcoin dominance remains at risk of further downside which points to the strong probability of altcoins rallying against Bitcoin (BTC) once more after the recent decline.

The cryptocurrency market overall has seen many ups and downs recently but it still remains in bearish territory. We have yet to see Ethereum (ETH) or Bitcoin (BTC) break out of the descending channels that they have been trading in since they topped out after making their yearly highs. However, there is still a possibility that Ethereum (ETH) might end up breaking past the descending channel even if it short lived. The reason we think there is a possibility this might happen is because ETH/USD keeps on trading close to the important $188 resistance level. If this level is breached, the price would be in the clear to rally hard.

So far, the 4H chart for ETH/USD remains painted by red candles near term after the recent decline. Ethereum (ETH) was long overdue for such a decline and if it weren’t for the strong support zone, it would have decline much lower. It is still possible that it could decline lower but it is more likely to see some short term relief first. If that relief rally turns into something more aggressive and the price breaks past the 61.8% fib extension level, we might have a bullish frenzy at hand that could see Ethereum (ETH) rally past $200.

Considering that a lot of bears have their stops above $200, we cannot ignore the possibility that we might see a rally or a pump to that level to liquidate those bearish positions. The fractal on the chart that has the “v shape” in the middle has been repeated on smaller time frames as well and it has led to massive further upside. If it leads to such a move on the larger time frame, it could seriously hurt retail bears as a lot of positions would be liquidated. The price will end up correcting after that but the greedy bears would not be onboard. This is why it is important to wait for confirmation before entering a trade, especially in this market. 

Jefe Caan , 2019-11-19 22:00:00 ,

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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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