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Ethereum is no stranger to being in a do or die situation. Most of the time it ends up gaining the most and losing the most in such situations depending on how it plays out. Ethereum dominance (ETH.D) is currently trading within a symmetrical triangle on the daily chart. At the moment, it is struggling to break past the 38.2% fib extension level. If it succeeds in doing that, then we would be looking at rally to the top of the triangle. However, it is a break above or below this triangle that will make or break Ethereum (ETH) and the potential altcoin rally that lies ahead.

If dominance rises from here, we could still see it face rejection at the 200 Day MA. However, if it falls below the symmetrical triangle, the probability of Ethereum dominance taking out the previous low would increase significantly. A fall in Ethereum dominance would be a bearish development not just for Ethereum but majority of the altcoin market including stablecoins. At the moment, stablecoins are regarded safe but we have seen previously how stabelcoins like Tether (USDT) and Dai (DAI) have failed before. Ethereum (ETH) based stablecoins would be at a much higher risk during the next downtrend in the market if Ethereum (ETH) ends up losing most of its value. There is a strong probability that ETH/USD might end up falling below $80 to find a bottom around $60 or lower.

Ethereum (ETH) remains in a strong downtrend. The 4H chart for ETH/USD shows what Ethereum (ETH) stands to lose if it declines within the descending channel. We could easily see it decline to a double-digit price in the near future. The difference this time is that a lot of projects depend on Ethereum (ETH). Traders and investors who have been around for long in this market would be able to relate that 2014 seemed like the end of cryptocurrencies after the Mt. Gox hack. This was because Mt. Gox handled more than 70% of Bitcoin transactions around that time.

So far, we have not seen anything of that sort happen in the market. Investors are still too optimistic that the market will see a new all-time high and that it might happen around Bitcoin’s next halving. The real maximum pain scenario would be if that does not happen and instead something unexpected happens in the Ethereum based altcoin market. We have already seen a DAO hack before so there would be no reason to be surprised if anything of the sort happens in the future. When something is meant to happen on the charts, we see real world events line up to support it.

Jefe Caan , 2019-12-04 00:00:00 ,

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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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