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Bitcoin

Bitcoin (BTC/USD) moved higher early in today’s Asian session as the pair traded up around the 7169.02 area after trading as high as the 7379.99 area during yesterday’s North American session.  During yesterday’s Asian session, the pair traded as low as the 6526.00 area after tumbling through some key technical areas.  Market sentiment has deteriorated rapidly over the last several days, a development that intensified yesterday when traders pushed the pair below the 6653 level, a downside price objective that gave way and saw the pair fall to the 6526.00 area.  Stops were also elected below the 6857 and 6775 areas during the downturn, and this saw the pair decline to its weakest print since May of this year.  The pair has now declined from its 10540.49 peak in late October, giving back a peak-to-trough 37.2% in the process.

Below current market activity, BTC/USD Bears are focusing on some additional downside price objectives, including the 6323 and 6038 areas.  Notably, BTC/USD Bears continue to focus on the 4748 area as an important downside price objective.  Also, the 6538.51 area is one level that traders are carefully monitoring, as it represents the 50% retracement of the 9948.12 – 3128.89 range.  Below that area, the 6440.82 area is also technically significant as it represents the 61.8% retracement of the 8488.00 – 3128.89 range.  An extension of the pair’s recent bearishness will open up additional downside price targets including the 5808 and 5733 levels, with the latter right around the 38.2% retracement of the aforementioned move from 9948.12 to 3128.89.   Likewise, the 5663.42 area is also technically significant as it represents the 76.4% retracement of the move from 3128.89 to 13868.44

Price activity is nearest the 50-bar MA (4-hourly) at 7631.20 and the 100-bar MA (Hourly) at 7,180.36.

Technical Support is expected around 6775.47/ 6653.57/ 6323.42 with Stops expected below.

Technical Resistance is expected around 7537.33/ 8062.04/ 8338.78 with Stops expected above.

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

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

 

Ethereum

Ethereum (ETH/USD) slid to the 144.32 level early in today’s Asian session after the pair traded as high as the 151.69 area during yesterday’s North American session.  Market bias has become increasingly negative during recent trading sessions as the pair depreciated to the 131.80 area during yesterday’s Asian session after Stops were elected below the 137.80 area.  Traders had focused on the 132.90 area as a major downside price objective for the pair, representing the 23.6% retracement of the 302.20 – 80.60 range, and Stops were triggered below during yesterday’s move.  Below that level, the 122.75 area is also coming into view, and may provide some technical Support.

Technicians have been very attentive to the pair’s ongoing depreciation from its print around the 199.50 area in late October.  Several clues emerged as the pair tested technical Resistance around the 192, 186, and 177 areas and failures around these levels led to Stops being elected below the 168 and 165 levels, key downside price objectives that hastened the slide to the 156 and 152 areas. When ETH/USD Bears continued their onslaught, Stops were elected below the 143 and 140 areasLonger-term traders are now eyeing the 127 and 104 areas as downside price objectives. Potential areas of technical Support include 130.05, 125.16, and 122.75.

Price activity is nearest the 50-bar MA (4-hourly) at 161.40 and the 50-bar MA (Hourly) at 145.14.

Technical Support is expected around 131.80/ 125.16/ 122.75 with Stops expected below.

Technical Resistance is expected around 161.37/ 163.60/ 165.25 with Stops expected above.

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

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

Sally Ho , 2019-11-26 04:00:00 ,

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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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