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Bitcoin price closed its November monthly candle in the red, marking a total of four out of five red candles since Bitcoin topped out at the end of June.

With the most recent monthly candle open, a prominent crypto analyst’s indicator has signaled a sell for the first time since June of the previous year, right before the bear market really began to take hold over the crypto market.

Bitcoin Price Closes November In the Red Once Again

The first-ever cryptocurrency, Bitcoin, closed its November monthly candle at $7,700. The close is particularly gut-wrenching for bulls, who a month prior saw Bitcoin set a record for its third-largest single-day gain in its short history, taking the price of the crypto asset all the way as high as $10,500 before falling back down to set new local lows.

Related Reading | November Monthly Bitcoin Close Critical For Bull Market

The burst to $10,500 ended up being nothing more than a bearish retest, confirming former support as resistance, and sending the price of the leading crypto asset by market cap tumbling down further.

Bitcoin spent almost the entirety of November falling downward from above $9,000 to as low as $6,500. An inverse head and shoulders formation heading into the Thanksgiving holiday caused the price of Bitcoin to rally toward $7,700 where the month closed out.

The monthly close now marks four out of five red monthly candles since the crypto asset topped back in June.

Crypto Indicator Signals Sell

This month’s candle open has triggered a sell signal on the Market God v7 indicator, designed by crypto analyst KingThies. The analyst says he designed the indicator to “eliminate” emotion from his trading to instead rely on algorithm-driven signals, and based on the indicator, plans to “short the corn” in reference to the first-ever cryptocurrency, Bitcoin.

The last time the analyst’s indicator gave a sell signal was after Bitcoin’s April 2018 rally failed to reclaim former highs, and the bear market truly began to ramp up in severity.

The indicator also gave a buy signal prior to the April 2019 rally, which took Bitcoin from $3,100 to as high as $14,000 before it was rejected at the end of June 2019, sending Bitcoin back into a downtrend that may be days away from once again picking up in severity.

The analyst says that based on the indicator’s signal, Bitcoin may be “done for a while” suggesting that it may be an extended period before Bitcoin begins another uptrend.

Related Reading | Accurate Trader Calls For $1K Bitcoin and Destruction of Crypto Industry 

Prior to the June 2019 top, most of the crypto market had believed that Bitcoin was well on its way into its next bull run, however, it is theorized that the selling related to the PlusToken scam has upset the delicate market structure, and has caused the asset’s cynical trend to be altered in a way that we won’t understand for some time.


Tony Spilotro , 2019-12-02 19:00:13

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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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