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Litecoin

Litecoin (LTC/USD) fell sharply early in today’s Asian session as the pair reached a low around the 53.89 area steady selling from the 60.04 area during Friday’s North American session.  Many traders noticed that the pair briefly tested and traded as low as the 56.09 area during last Friday’s North American session, an important technical development given the technical significance of the 56.71 area as the 50% retracement of the recent 47.22 – 66.19 range.  The pair’s brief movements below that level opened up potential downside targets such as the 54.47 and 51.70 areas, representing the 61.8% and 76.4% retracements of the same range.  Bearish sentiment has returned with LTC/USD now trading below its 200-bar MA (4-hourly).

Regarding LTC/USD’s recent range expansion, the 47.13 area represents possible technical Support and the 23.6% retracement of the 127.95 – 22.17 range.  The pair’s next upside price objective related to this range is the 62.58 area, an area the pair tested on 11 November.  Another very important technical range that LTC/USD traders are watching is the move from the 182.35 – 22.17 area.  The 59.97 area represents the 23.6% retracement of this range, and the 83.36 area is the 38.2% retracement of this range.  Additionally, the 192.89 – 22.17 range is another important one, and the 62.46 area represents the 23.6% retracement of this range. 

Price activity is nearest the 200-bar MA (4-hourly) at 57.83 and the 100-bar MA (Hourly) at 58.33.

Technical Support is expected around 52.15/ 50.25/ 47.13 with Stops expected below.

Technical Resistance is expected around 64.40/ 69.47/ 75.06 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 Bearishly below MACDAverage.

 

Bitcoin Cash

Bitcoin Cash (BCH/USD) fell sharply early in today’s Asian session as the pair weakened to the 237.50 area after peaking around the 270.27 area late in Sunday’s North American session.  Some traders had retained a neutral market outlook and bias regarding BCH/USD while it remained above the 252.97 area, representing the 50% retracement of the 197.92 – 308.21 range that commenced from 23 October.  The technical relevance of this range had been confirmed by the pair’s recent price activity around the 266.00 level, representing the 38.2% retracement of the same range.  With major Stops elected below this level during yesterday’s North American session, the outlook has dimmed considerably.

On the downside, traders will pay close attention to the range’s downside price targets including the 239.98 and 223.80 areas, representing the range’s 61.8% and 76.4% retracements.  Before challenging those downside targets, however, the 243.03 area represents the 61.8% retracement of the 73.22 – 517.75 range and Stops were triggered below.  Chartists are also eyeing the 200-bar MA (4-hourly) as an area that recently provided technical Support when indicating around the 258.75 area.  Traders are now eyeing the 235.84 and 230.02 areas as important downside technical Support levels.

Price activity is nearest the 200-bar MA (4-hourly) at 262.54 and the 50-bar MA (Hourly) at 262.95.

Technical Support is expected around 235.84/ 259.29/ 252.97 with Stops expected below.

Technical Resistance is expected around 252.97/ 230.02/ 223.80 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 Bearishly below MACDAverage.

Sally Ho , 2019-11-19 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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