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Bitcoin

Bitcoin (BTC/USD) depreciated early in today’s Asian session as the pair fell to the 8690.00 level after being capped around the 8787.86 level during yesterday’s North American session. The pair had previously tested the 8590.00 level.  The pair’s recent range expansion has some traders focusing on longer-term ranges and their impact on BTC/USD.  One level the pair had been orbiting before its recent down move was the 9301.26 area, representing the 38.2% retracement of the 7296.44 – 10540.49 range.  That area is also near another important retracement level, namely the 9269.57 level that represents the 50% retracement of the broader 4670.69 – 13868.44 rangeBelow current market activity, the next retracement level related to this broader range is the 8184.23 area, and some decent Stops are likely in place belowAbove current market activity, the next retracement level related to this broader range is the 10354.90 area, with some Stops like in place above.

Longer-term BTC/USD traders also observe that current market activity recently orbited the 9385.99 area, the 61.8% retracement level of another range, specifically the move from 6615.28 to 13868.44Below that level, the 8327.03 area represents the 76.4% retracement of that range and may provide technical Support. Above that level, the 10241.86 area represents the 50% retracement of that range and may provide technical Resistance and selling pressure, with some Stops likely in place above.   A couple of additional important levels to monitor include the 8947.18 and 9887.63 areas, representing the 76.4% and 61.8% retracements of the 7427.00 – 13868.44 range.

Price activity is nearest the 50-bar MA (4-hourly) at 8,559.70 and the 50-bar MA (Hourly) at 8,840.10.

Technical Support is expected around 8502.35/ 8062.04/ 7343.17 with Stops expected below.

Technical Resistance is expected around 9130.00/ 9378.16/ 9774.89 with Stops expected above.

On 4-Hourly chart, SlowK is Bullishly above SlowD while MACD is Bearishly below MACDAverage.

On 60-minute chart, SlowK is Bearishly below SlowD while MACD is Bullishly above MACDAverage.

 

Ethereum

Ethereum (ETH/USD) depreciated early in today’s Asian session as the pair traded as low as the 183.77 area after trading as high as the 187.02 area during yesterday’s North American session.  As traders have recently knocked the pair lower from the 194.60 level and short-term trading ranges have expanded, traders are focusing on some additional levels including the 191.40 area that represents the 23.6% retracement of the 318.60 – 152.11 range.  If traders are able to take out the recent 199.50 high and absorb the psychologically-important 200.00 figure, attention will again focus on the 202.23 area, representing the 23.6% retracement of the broader 364.49 – 152.11 range. Stops are likely in place above this area.

Chartists note that before ETH/USD is able to test those areas, it must first challenge the 197.56 area, representing the 76.4% retracement of the important 146.00 – 364.49 range. Another very important broader range is the 122.75 – 364.49 range, and the 179.80 area represents the 76.4% retracement of that range, with the 215.09 area representing the 61.8% retracement of that range.  Longer-term ETH/USD traders and market technicians are also keeping tabs on the much broader 100.15 – 364.49 range, where the 201.10 and 162.52 areas represent the 61.8% and 76.4% retracements.

Price activity is nearest the 50-bar MA (4-hourly) at 179.60 and the 50-bar MA (Hourly) at 186.94.

Technical Support is expected around 180.43/ 177.39/ 175.02 with Stops expected below.

Technical Resistance is expected around 187.66/ 191.32/ 194.60 with Stops expected above.

On 4-Hourly chart, SlowK is Bullishly above SlowD while MACD is Bearishly below MACDAverage.

On 60-minute chart, SlowK is Bearishly below SlowD while MACD is Bullishly above MACDAverage.

Sally Ho , 2019-11-12 02:00:00 ,

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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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