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The Euro has finally formed a double top against the US Dollar which has now increased the probability of a move to the upside in the EUR/USD forex pair. The 4H chart shows this double bottom and the range that the pair has been trading in since it declined below the 38.2% fib extension level. There is a good chance that the pair will keep on trading within this range even if it sees further upside for now. However, if it ends up closing the week with a move to the upside, this will be a very bullish development for the cryptocurrency market.

When the EUR/USD forex pair declined below the 38.2%, it closed the week without completing the move down to the 61.8% fib extension level. Professional traders were aware of this and they expected this move to be completed next week which is why they were more bearish on cryptocurrencies during the weekend and this is how we saw a massive crash in the price of Bitcoin (BTC) and other cryptocurrencies. If we see the EUR/USD forex pair end the week close to the 38.2%, many traders will expect a retest of that level next week which would make them bullish on Bitcoin (BTC) this weekend. That being said, it is very important to be cautious because BTC/USD is now very close to topping out short term. However, a move towards $8,000 is still quite likely.

The 4H chart for BTC/USD shows how there is little room for the price to rally higher from here. It is expected to break out of this falling wedge but that is unlikely to happen under such overbought conditions. The most probable scenario would be a move out of this falling wedge towards $8,000 that would have many traders thinking that a big pump is in the making which would likely fail and result in another downtrend in the days ahead.

Bitcoin (BTC) could make another pump similar to what it has in the past either at this point or at a later point after a near term correction. However, it is important not to be distracted by these moves because the major trend is to the downside. The focus should remain on BTC/USD declining down to $5,500 and potentially much lower during the next downtrend. This bear market is a long way from being over just yet which is why any bullish positions ought to be entered with extreme caution and tight risk management.

Jefe Caan , 2019-11-29 16:00:00 ,

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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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