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Ethereum (ETH) continues to remain above the 38.2% fib extension level against Bitcoin (BTC). It has faced some resistance short term but it seems like the pair is ready to take on the 200 moving average and eventually rally much higher on the 4H chart for ETH/BTC. As long as the pair remains above the 38.2%, the probability of that happening is quite high. At the moment, the 200 moving average coincides with the upper Bollinger band. If the pair breaks past this level, it will lead to an explosive breakout. RSI and the Stochastic indicators on the 4H time frame both favor such a move.

Ethereum (ETH) started the day in green against Bitcoin (BTC) and the trend is likely to continue as long as Bitcoin dominance declines further. Recent developments in the altcoin market are much similar to what we saw in the aftermath of the last crash that saw Bitcoin (BTC) fall to the bottom of the descending channel. The period after saw altcoins rallying against Bitcoin (BTC) while Bitcoin dominance declined. It reached a point of reversal and after that we saw a big pump in Bitcoin and altcoins lagged behind. That was then followed by a gradual decline and eventually a crash. The same appears to be happening this time as we are seeing altcoins begin to rally against Bitcoin (BTC). Ethereum (ETH) could kick off the next altcoin rally as soon as next week after a small pullback near term which is now long overdue.  

Ethereum (ETH) is on the verge of a major breakout not just against Bitcoin (BTC) but also the US Dollar (USD). The 1H chart for ETH/USD shows that the price does not have much room to trade within the symmetrical triangle and will soon have to break out. If it fails to break to the upside, we would expect a retest of the $144 level. If it succeeds in breaking to the upside, we will eye a target of $170 which if broken would propel the price towards the trend line resistance that lies slightly above.

Before the next downtrend begins, the market makers and the whales need to get the bulls optimistic once more. A big move to the upside in the near future would be the best way to do it. Then if it is followed by a minor pullback before the next uptrend, when the price actually begins to crash many investors would think it is just a minor pullback and the price would go up again which it won’t. Patience and discipline is very important here because these are the same games that these big players have been playing over and over. Retail traders cannot change the game but they can avoid falling in the radar of the big players by understanding the game plan.

Jefe Caan , 2019-11-30 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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