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Bitcoin

Bitcoin (BTC/USD) traded as low as the 8423.00 level early in today’s Asian session after traders pushed the pair as low as the 8361.00 area during yesterday’s North American session, its weakest print since 25 OctoberStops were elected below the 8535.67 area during the spin lower, representing the 61.8% retracement of the 7296.44 – 10540.49 rangeMarket sentiment continues to steadily erode following the pair’s spike to the 10540.49 area on 26 October, with price activity having traded as low as the 8490.01 prior to the later decline. This is an important technical development because this level is the below the 8535.67 area, representing the 61.8% retracement of the late-October rally from 7296.44 to 10540.49.  The pair’s continued depreciation has seen it trade below the 200-bar MA (4-hourly).

The 100-bar MA (4-hourly) has recently crossed above the 50-bar MA (4-hourly) and this has coincided with additional price depreciation. Chartists are noting it appears the 50-bar MA (4-hourly) is Bearishly converging with the 200-bar MA (4-hourly).  Many traders are not surprised that buying pressure emerged around the 8490 area during yesterday’s Asian session given the historical relevance of the 8488.00 area as a floor.  Below current market activity, traders cite the 8338.78 area as an important one, representing the 76.4% retracement of the 9948.12 – 3128.89 range

Price activity is nearest the 200-bar MA (4-hourly) at 8,691.48 and the 50-bar MA (Hourly) at 8,587.80.

Technical Support is expected around 8338.78/ 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 Bearishly below SlowD while MACD is Bearishly below MACDAverage.

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

 

Ethereum

Ethereum (ETH/USD) was lifted back to the 180.31 level early in today’s Asian session after the pair traded as low as the 177.00 area during yesterday’s North American session, its weakest showing since 26 October.  Chartists are looking for clues that the pair’s market bias could be eroding and have noted the pair has recently traded below the 181.74 area, an important technical development as it represents the 38.2% retracement of the 153.00 – 199.50 range.  The next major level on the downside related to that range is the 176.25 area, representing the 50% retracement of the move higher and below that area, the 170.76 area represents the 61.8% retracement of the range.

Market technicians have noted the Bearish convergence of the 50-bar MA (4-hourly) and 100-bar MA (4-hourly), and have also noted that the 200-bar MA (hourly) has recently crossed above the 100-bar MA (hourly), another Bearish development that will likely result in at least some short-term downside direction for the pair.  The buying pressure that emerged around the 180.30 level yesterday was important given the technical relevance of the 180.43 area as the 38.2% retracement of the 152.11 – 197.93 area.  Traders anticipate some additional potential buying pressure between the 178.40 – 179.85 range.

Price activity is nearest the 200-bar MA (4-hourly) at 180.75 and the 50-bar MA (Hourly) at 183.12.

Technical Support is expected around 176.25/ 175.02/ 170.76 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 Bullishly above SlowD while MACD is Bullishly above MACDAverage.

Sally Ho , 2019-11-16 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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