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  • Negative movements have swept the markets
  • What’s to blame for the recent decline in cryptocurrency
  • Is this a sign of things to come

Cryptocurrency has recently hit rough headlines as a result of a bit of a market slump that has caused a bit of a depressive feeling around the cryptocurrency industry. Now, as we know these sort of market changes are often temporary, though we should always take the time to analyse them to ensure that we can learn from mistakes and misfortunes. 

Many believe that the recent decline in cryptocurrency like Bitcoin and Ethereum is down to China and other political happenings that are putting the entire planet on a bit of a rocky trajectory. Let’s face it, things aren’t exactly certain at the moment are they? According to Bloomberg News in a recent report:

“Cryptocurrencies have been on a persistent downtrend this month after China took steps to crack down on virtual-currency trading. The People’s Bank of China said this week that more than 170 Chinese platforms that offer crypto trading and initial coin offerings services have shut down. That follows an earlier report that the PBOC asked investors to be wary of virtual currencies and told businesses involved with digital assets to correct any improper actions.”

Earlier this week:

“Bitcoin fell as much as 2.6% on Tuesday to trade around $7,028 in New York. That’s its lowest level in six months. The Bloomberg Galaxy Crypto Index, which tracks some of the largest cryptocurrencies, dropped as much as 1.6%, to trade at its lowest since April.”

Of course much of this is speculation and truly it’s very difficult to pinpoint exactly why cryptocurrencies slide like they do, we can however use this to determine how the near future might look for Bitcoin. With the world as uncertain as it is at the moment in terms of economics, politics and technology, it’s unlikely that Bitcoin will ever be able to latch onto a significant positive uptrend. Of course, prices will climb and Bitcoin will peak again, but then the price is likely to come back down in the wake of such optimism. 

The best thing to do here is to ensure that you keep up to date with current affairs and carefully watch the cryptocurrency markets. Do your own research and make sure you trade safely. If you do, then you’ll be best prepared to cope with these downtrends so when they do happen, you don’t lose out.

Adrian Barkley , 2019-11-29 14:30:00 ,

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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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