Skip to content Skip to sidebar Skip to footer

Ethereum (ETH) risks further decline within the broadening wedge as the bulls fail to come to rescue. We have seen some bullish attempts but they have failed miserably and traders do not seem eager to buy the dip mostly because most of them are already deep into bullish positions from much higher levels. The recent crash inflicted some pain on the bulls but it is far from over just yet. If the market continues to decline and ETH/USD crashes down to $170, it could trigger a major stop hunt that could pull the price down to $144 or lower in a matter of hours.

If we take a look at the 15 min chart for ETH/USD, we cannot see any bullishness even after massive declines. It seems like nobody is buying the dips anymore maybe because they have bought the dips much higher. Before the recent decline, whenever the price crashed down to the trend line support on the descending broadening wedge, we saw a quick bounce followed by a relief rally. This time, that has not happened and it is beginning to look like it is not going to happen. Even if it were to happen, the price does not seem to be in a position to break out of the broadening wedge and will thus have to decline lower into the wedge. This time, there is not enough bullish momentum for the price to rise even towards the top of the broadening wedge.

The 4H chart for ETH/BTC shows Ethereum (ETH) rising against Bitcoin (BTC) but we now have reasons to believe that this ascending channel could be part of a bear flag. RSI on the 4H chart for ETH/BTC shows a bearish divergence that should serve as a red flag for anyone eyeing further upside in this pair. Ethereum (ETH) could still rally higher after the next crash to complete its uptrend against Bitcoin (BTC) but it is long overdue for a short term correction at this point.

Ethereum (ETH) has yet to reach the 200 day moving average against Bitcoin (BTC) which means that it might have room to rally further against Bitcoin (BTC) after the upcoming decline. However, there do not seem to be any plausible bullish possibilities that point to ETH/BTC testing the 200 day moving average at the moment. Until and unless we have a break below the ascending channel on ETH/BTC this trend is likely to remain intact and there would be no reason to trade against it. However, the trend is likely to reverse soon and traders might want to keep an eye out for further downside in Ethereum (ETH) not just against the US Dollar (USD) but also against Bitcoin (BTC) in the days and weeks ahead. 

Jefe Caan , 2019-11-20 22:00:00 ,

Source link

Leave a comment

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

Source link