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Bitcoin’s recent drop to the low-$8,000 has sent bearishness echoing across the aggregated market, leading major altcoins like Ethereum to post relatively large losses. ETH, which was testing an upwards break above $190 prior to BTC’s drop, is now trading below a key support level.

Ethereum’s break below this key support level could mean that further losses are imminent, but analysts are noting that one support region that lies significantly lower than its current price levels could catalyze a massive bull movement that sends its price surging up to $260.

Ethereum Breaks Below $180 as Bitcoin Struggles to Build Upwards Momentum

At the time of writing, Ethereum is trading up nominally at its current price of $176.5, which marks a notable retrace from its recent highs of $190 that were set this past weekend as the cryptocurrency’s bulls attempted to push its price up against the resistance that existed at this level.

This movement was short-lived, however, as Bitcoin’s plummet down to its support at $8,000 led virtually all major altcoins to post similarly bearish moves.

ETH’s recent bearishness was not unanticipated, as analysts had previously noted that the crypto’s surge to $200 in late-October swept its range highs, and that it would likely target its long-term support level around $140 in the near-term.

Liverpool, a popular cryptocurrency analyst on Twitter, spoke about this in a tweet from late last month, noting that Ethereum’s two support levels exist at roughly $170 and $140.

“$ETHUSD – Price swept the range high but range low remains uncleared – Resting liquidity below the equal lows attracts the price – There is also an untested weekly block below – I think we’ll see a lower high in the OTE / 2HR Block and then slowly grind towards the weekly block,” he said while pointing to the chart seen below.

Could Drop to $130 Spark Massive Bull Movement?

Liverpool is not alone in suspecting that Ethereum may move to the lower-$100 region in the near-term, as Loomdart – another popular cryptocurrency analyst on Twitter – recently explained that he believes a movement to $130 could spark a bull run that sends the crypto surging towards $260.

“$ETHUSD nearing point of maximum profit for longs IMO. If we start heading lower expecting double bottom at $150s to not hold and price to hit $130s. Upside target is $260s,” he said while referencing the below chart.

Bitcoin’s near-term price action will likely guide that of Ethereum’s, although any further capitulation could prove to be a positive thing for ETH’s long-term price action.

Featured image from Shutterstock.

Cole Petersen , 2019-11-20 21:00:52

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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.

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Nick Chong , 2019-11-10 12:00:38

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