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For the past few days, Bitcoin (BTC) bears have been eagerly waiting for a sharp decline. However, so far what we have seen is that the price has ended up declining but more in a slow bleed manner rather than an aggressive one. It appears that many of the big players in this space do not want to spook retail bulls just yet. We do not know what plans they really have for making that happen but so far they are relying on manipulated pumps along the way to keep their hopes high. We have seen one such pump recently again. After the massive 43% pump in just two days, such manipulated pumps have become a common sight in this market. 

The 4H chart for BTC/USD shows how the price reversed a bearish move to $8,370 in a matter of minutes. The red candle turned into a green one and many of traders that entered shorts during the decline were liquidated. While it would not have been the most prudent thing to do as a responsible trader to have been short selling without a confirmation, there is no denying that manipulation has become more rampant in the market. The market makers and the whales are more comfortable making the bears the target of such manipulation for now because the vast majority of retail bulls seem unbothered by it. In fact, they welcome such manipulation if it means pumping the price higher.

The daily chart for Bitcoin Dominance (BTC.D) shows that the downtrend might soon come to an end when we see the 200 day moving average being tested. However, just like the price of Bitcoin (BTC), Bitcoin Dominance (BTC.D) is declining in a slow bleed manner towards the 200 Day MA. We could see a sudden rise in dominance again short term as we have seen numerous times before during this rally. Most of the time, a sudden rise in dominance has led to the price of Bitcoin (BTC) temporarily outpacing the rest of the market. 

Bitcoin is also easy for a lot of the big players to manipulate which is why it would not be surprising to see manipulated pumps in BTC/USD along the way. That being said, we need to realize that the market has been long overdue for a correction to the downside. It will happen sooner or later. The real question is, “how long is it going to take?” So far it appears that if this slow bleed continues we might see the price decline to $7,800 in a sluggish manner. The outcome of such a move would be that the bulls would keep buying the dip and the bears would keep stopped out along the way trying to short the market. There is a high probability that a crash will eventually happen but it is most likely to happen when retail traders least expect it to happen.

Jefe Caan , 2019-11-17 15:00:00 ,

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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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