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Once again, bears have managed to wrest control of the crypto market from bulls, plunging Bitcoin (BTC) to $6,600 earlier today. This comes after Bitcoin bulls were afforded a glimmer of hope as the cryptocurrency jumped 8% from the Friday low of $7,400.

Related Reading: Crypto Tidbits: Bitcoin Dives Under $8,000, Fidelity Bags Trust License, SEC Takes Second Look at ETF

While the crypto is now trading at its lowest price since May, some analysts believe that BTC is still showing signs that it is poised for growth. Crazy as this sounds, there is a confluence of positive technical analysis to back this sentiment.

Why Bitcoin is Still Bullish

Marcel Burger, the head of a crypto investment boutique based in the Netherlands, recently noted that Bitcoin’s one-week chart is still showing signs of strength, despite the absolutely brutal 20% drop seen over the past week.

He noted that BTC’s one-week candles are currently painting a massive bull flag, marked by parallel lower highs and lower lows. If this textbook pattern plays out in full, the cryptocurrency will continue higher into the start of 2020, potentially back into the five-figures range, after a strong breakout to the upside.

That’s not all. Burger continued that Bitcoin remains just below the key 0.618 Fibonacci Retracement level, which some analysts call the “golden pocket” of support. If the cryptocurrency manages to flip that level into a support level, it would suggest that upside could be had in the weeks and months that followed.

It isn’t only Burger that believes a bounce could be had. Popular trader Dave the Wave, who notably called the drop to $6,700 at least four months ago, said that Bitcoin is currently trading extremely oversold according to the one-day chart on Bitstamp. Also, BTC is at the bottom of a medium-term channel that it has been trading in since June earlier this year. This confluence, he writes, means that the cryptocurrency is prime to see a price bounce, one that his chart seemingly says will bring BTC towards the $8,000s.

$5,000 First, Then Moon? 

While a short-term bounce seems entirely possible, especially considering what was laid out above, many think that a collapse to lower levels than $6,600 is entirely plausible over the next few weeks.

Per previous reports from NewsBTC, an analyst going by Mac remarked that $5,100 will be the ultimate bottom of this recent downtrend because there exists a key confluence of support levels at that level: the double-month volume-weighted average price, a “price inefficiency fill” level, and the 200-week moving average.

This corroborates a chart from Velvet, an analyst who called the recent drop from $8,000 to $6,700 over a week ago. The trader’s below analysis implies that Bitcoin will bottom somewhere in the $5,000s or $6,000s.

Related Reading: Uncommon Bitcoin Metric Suggests Massive Profit Taking Is Underway 
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Nick Chong , 2019-11-25 12:00:37

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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.

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Nick Chong , 2019-11-10 12:00:38

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