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Bitcoin had a major macro candle close yesterday, posting both its monthly and quarterly candle.

Although BTC saw little volatility heading into this close, the cryptocurrency was able to hold well-above $10,500 before and after it took place, which provided bulls with a serious boost.

Overnight, the strength resulting from this close allowed Bitcoin to push up towards $11,000, reaching as high as $10,920 before its ascent slowed.

Although BTC has yet to see any strong push higher, its short-term outlook still remains fairly strong. Where it trends next may depend primarily on whether or not bulls are able to break through the resistance between $11,000 and $11,200.

The selling pressure here is rather significant and may hamper its growth in the days and weeks ahead.

That being said, one trader did note that the bull case for the benchmark cryptocurrency was boosted by the recent candle close and may indicate that the chances of it seeing upside are beginning to grow.

Bitcoin Struggles to Rally Despite Bullish Monthly Candle Close

At the time of writing, Bitcoin is trading up just under 1% at its current price of $10,870. This marks a break above the trading range it had formed between $10,600 and $10,800, but buyers have been struggling to break above $10,900.

Because of the lack of strength and conviction seen throughout this latest push higher, bears may be able to regain control over BTC and push it lower in the near-term.

That being said, the crypto’s mid-term outlook was boosted by yesterday’s monthly and quarterly candle close.

Unless bears push BTC below its $10,200 support, its mid-term outlook remains incredibly bright.

Trader: It’s Growing Hard to Be Bearish on BTC Following Recent Candle Closes

While sharing his thoughts on Bitcoin’s mid-term outlook, one trader explained that it is growing increasingly difficult for bears to justify their positioning given the latest monthly candle close.

He notes that a serious block of support stands in the way of it seeing any type of move that invalidates its mid-term strength.

“BTC monthly: If you’re a believing man, this is a bullish retest and any dips towards $10.1k are for buying. If you’re a doubter, it’s really hard to be bearish as long as that block stands in the way so might be time to be patient to see where this month goes.”


Image Courtesy of DontAlt. Chart via TradingView.

How the entire crypto market trends throughout the fourth quarter will depend on Bitcoin.

Featured image from Unsplash.
Charts from TradingView.

Cole Petersen , 2020-10-01 18:00:41

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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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