Bitcoin

Bitcoin price is in a downtrend, after spending nearly a full year in a parabolic uptrend. An indicator bearing the “parabolic” name on monthly timeframes has given a signal, that according to past instances, has always resulted in a catastrophic fall in the top cryptocurrency by market cap. Even if the resulting selloff ends up being the weakest ever following such a signal, it still could put Bitcoin at risk of a plunge to below $20,000 per coin. Here’s why. Remembering The Now Broken Bitcoin Uptrend Through Now 2020 was the perfect storm for Bitcoin and the rest of crypto. Talk of inflation, a supply shock, and nations in turmoil caused investors to flock with the scarce and innovative emerging assets. Institutions, hedge funds, and even corporations began to pay attention to Bitcoin, and the greater crypto market began to boom due to Ethereum, DeFi, NFTs, and Dogecoin. Related Reading | Bitcoin Bulls Bring Out Hammer Of Thor Reversal, But Support Must Hold More big names have been drawn to the space than ever before, and Bitcoin is now in the portfolios of the wealthy around the world. The scramble to buy BTC before everyone else sent the price per coin on a parabolic uptrend, and took it from under $4,000 to more than $65,000. All the attention helped take Coinbase public, but since then Bitcoin and the rest of crypto has been in a downtrend, and it could get a lot worse now that the parabola has been broken. The Parabolic SAR hasn’t been hit many times in Bitcoin’s history | Source: BTCUSD on TradingView.com Why The Parabolic SAR Could Be Warning Of Further Crypto Collapse When Bitcoin price broke its parabolic advance in early 2018, iconic trader Peter Brandt famously called for an 80% correction, give or take a few percentage points on either side. A year later the leading cryptocurrency by market cap plummeted to its bear market bottom for a full 84% retracement. A tool that can help tell traders when an asset has gone parabolic, and through that tool where to place stop losses, could be signaling that Bitcoin will drop a lot more now that again parabola has been broken – possibly as much as Brandt called for in the past. Related Reading | The Missing Ingredient From A Full On Bitcoin Reversal The technical analysis tool, called the Parabolic SAR can indicate when a trend has “stopped and reversed.” The recent selloff touched the Parabolic SAR on monthly timeframes, and in the past each time that happened, BTC dropped by 72% or more against the dollar. At the highest point the post-SAR plunge reached a staggering 86% – not far from the statistics shared by Brandt. With the tool triggered, even at the lowest ever drop in history percentage wise, Bitcoin is still at risk of dropping below $20,000 or even lower. At even 84%, which we now know happens when parabola is broken, it could take the top crypto asset back to around $10,000. Traders use the Parabolic SAR to move their stop losses up in profit, so the only hope left for bulls is that this level was hunted on purpose. The fall happened to coincide with the yearly open, so there are plenty of technical reasons for the target also. Featured image from iStockPhotos, Charts from TradingView.com

Bitcoin price extended its decline and tested the $31,500 zone against the US Dollar. BTC is now recovering losses, but it is likely to face sellers near $34,000 and $35,000. Bitcoin remained in a bearish zone and it even broke the $32,000 support zone. The price is now trading well below $35,000 and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $35,100 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to correct higher, but the bears could prevent gains above $35,000 in the near term. Bitcoin Price Could Recover Losses Bitcoin struggled to stay above the $33,000 zone and it extended its decline. BTC broke the $32,500 and $32,000 support levels to move further into a bearish zone. The price even spiked below the $31,500 level and settled well below the 100 hourly simple moving average. It traded as low as $31,310 and it recently started an upside correction. Bitcoin is now back above the $32,000 and $32,500 resistance levels. There was also a break above the 23.6% Fib retracement level of the recent drop from the $36,170 swing high to $31,310 low. An initial resistance on the upside is near the $33,800 level (the recent breakdown zone). The 50% Fib retracement level of the recent drop from the $36,170 swing high to $31,310 low is also near $33,800. The main resistance is now forming near the $35,000 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $35,100 on the hourly chart of the BTC/USD pair. Source: BTCUSD on TradingView.com Therefore, bitcoin bulls are likely to face a major resistance near the $35,000 zone and the 100 hourly SMA. The next major resistance on the upside sits at $36,200. More Losses in BTC? If bitcoin fails to clear the $33,800 resistance or the trend line resistance, it could continue to move down. An immediate support on the downside is near the $32,000 level. The next major support is near the $31,500 level. A downside break below $31,500 could open the doors for more losses. In the stated case, the price might even test $30,000. Technical indicators: Hourly MACD – The MACD is slowly moving into the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is struggling to clear the 50 level. Major Support Levels – $32,000, followed by $31,500. Major Resistance Levels – $33,800, $34,000 and $35,000.

Bitcoin price started a downside correction from well above $40,000 against the US Dollar. BTC is now trading near a major support at $38,000, where the bulls are currently active. Bitcoin started a downside correction after it failed to stay above $40,000. The price is currently just below $39,000 and the 100 hourly simple moving average. There was a break below a key contracting triangle with support near $39,900 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to start a fresh increase unless there is a close below the $38,000 support=. Bitcoin Price Revisits Key Support Bitcoin topped near the $41,350 before it started a downside correction. BTC consolidated above $40,000 for some time before the bulls failed to protect the mentioned support zone. The price declined below the $40,000 and $39,500 support levels. There was also a break below a key contracting triangle with support near $39,900 on the hourly chart of the BTC/USD pair. The pair even broke the $38,500 support level and the 100 hourly simple moving average. However, the bulls are protecting the $38,000 support zone (the last breakout zone). The price is now consolidating above the $38,000 level. It is also just below $39,000 and the 100 hourly simple moving average. The 23.6% Fib retracement level of the recent decline from the $41,350 swing high to $38,154 low is also near the 100 hourly SMA. Source: BTCUSD on TradingView.com The first major resistance is near the $39,750 level. It is close to the 50% Fib retracement level of the recent decline from the $41,350 swing high to $38,154 low. The main resistance is now forming near the $40,000 zone. A clear upside break above the $40,000 zone is likely to set the pace for a fresh rally in the near term. More Losses in BTC? If bitcoin fails to clear the $39,750 resistance and $40,000, it could extend its decline. An initial support on the downside is near the $38,150 level. The first major support is near the $38,000 level. A downside break below the recent low and the $38,000 level could open the doors for a larger decline towards $36,500. Technical indicators: Hourly MACD – The MACD is slowly moving into the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is rising towards the 50 level. Major Support Levels – $38,150, followed by $38,000. Major Resistance Levels – $39,500, $39,750 and $40,000.

Bitcoin price is making its best attempt yet to climb back above $40,000 since the big crash in May. Thus far, the phrase “sell in May and go away” has worked like a charm, and it could take longer before buying coins back again is a profitable strategy. That’s because the top cryptocurrency is struggling to hold above the middle-Bollinger Band, and if it can’t hold, it could result in another retest of the bottom of the band. Another retest could finally push the price per coin below support, making a clean sweep before a reversal. Deja Vu: Why A Historic Move Could Be On The Horizon For anyone who was around the crypto market during 2019, it feels like deja vu. At above $10,000, it wasn’t uncommon to see traders claiming the next stop was $100,000 or more. They were wrong, and Bitcoin crashed. When it did, and sentiment shifted bearish, the cryptocurrency reversed with the third most profitable day on record. Anyone familiar with the October 2019 “China pump” knows that things can turn around fast, even when they seem at their worst. Related Reading | Time To Pay Attention: Bitcoin Indicator Behavior Mimics Historic Rally Indicators are primed in the same way and so is sentiment, and the latest rally following a morning star reversal and dragonfly doji serve up plenty of bullish signals. Why then, are the Bollinger Bands warning of one more potential collapse – matching the China pump a lot more closely than the current price action. Could Bitcoin sweep lows one more time? | Source: BTCUSD on TradingView.com Bitcoin Price Could Slingshot Lower Before A Bounce Back To Highs The Bollinger Bands created by John Bollinger are a versatile technical analysis tool that measures volatility, highlights support and resistance, and much more. When the bands tighten or squeeze, it is a sign a massive move is coming ahead, and so far the tool is signaling something shocking should soon happen. But when? Related Reading | Bitcoin Daily Dragonfly Doji Gives Bulls Hope Of Sharp Reversal Not quite yet, if the middle-Bollinger Band – a simple moving average – is lost as support. During the prelude to the historic China pump, the middle-BB was lost not once but twice. Indicators also match the last time Bitcoin got so confusing | Source: BTCUSD on TradingView.com Bollinger Band Width is at similar lows, but should hang there a while long. BB% could sweep the current low like it did in 2019 before slingshotting back upward. Finally, the LMACD is also exhibiting a very similar pattern and if another bearish crossover happens, it could be a massive trap like the last time around. But for now, beware of one more sweep of lows before a reversal. Featured image from Deposit Photos, Charts from TradingView.com

The crypto market is in full fledged fear for the longest phase in more than a year, coinciding with a massive Bitcoin drop of more than 50%. The once trending cryptocurrency has yet to recover, leaving the market and participants in a state of extreme fear. But past data shows, fear is often a good thing for Bitcoin, and helps the asset find support and at least a short term bottom. Bottom Things: Bitcoin Price Action Perfectly Correlates To Fear And Greed Fear is one hell of an emotion and can make even so-called “diamond hand” Bitcoin holders panic sell. No emotion comes close to driving humans toward acting irrationally more so than fear, other than greed. Greed can be even worse, blinding investors and traders to what’s going on around them. When money is easy, it is difficult to click that sell button and secure profit knowing that prices could rage on much higher. Related Reading | Bitcoin Bulls And Bears Alike Beware Of Potential Pump And Dump Fractal The two emotions are almost never in balance when it comes to markets, which makes changes from one extreme to another especially notable. Several investing legends have made their names and built their reputations based on contrarian positions, and there’s a reason for it that couldn’t be any more obvious than comparing the crypto market Fear and Greed Index with Bitcoin price action. Fear and green correlates well with tops and bottoms | Source: BTCUSD on TradingView.com The One Simple Trick To Regular Crypto Investing Success Be fearful when others are greedy and greedy when others are fearful. Buy the blood in the streets. All of these famous finance quotes directly reference contrarian trading. Why then, can’t anyone simply just control their emotions, and buy when things get scary and sell when others are screaming on social media about their gains? The crypto market Fear and Greed Index compared with Bitcoin price action shows just how this “one simple trick” actually works and can make you rich. Yet it is still extremely difficult to pull off. Related Reading | Five Signs That The Bitcoin Bottom Is In The fact is, no one knows at the moment, and although it looks obvious in hindsight, things could truly go either way. What being greedy while others are fearful and being fearful when others are greedy does, is improve the chances of success. Markets reverse when things are at their best or worst, and always when participants least expect it. By learning to alter your thinking, traders can also learn to control these two critical emotions. This is also why in technical analysis, sticking to the strategy is most important. By doing so, even if emotions arise, there’s a plan to fall back to and reasoning to back up why you took the position in the first place: because fear sometimes equals bottoms in Bitcoin. Featured image from iStockPhoto, Charts from TradingView.com

Bitcoin price started a strong increase above the $35,000 resistance against the US Dollar. BTC is currently showing a lot of positive signs and it could even surge above $38,000. Bitcoin started a steady increase above the $35,000 and $36,000 resistance levels. The price is currently well above $36,000 and the 100 hourly simple moving average. There was a break above a major bearish trend line with resistance near $35,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to accelerate higher if it clears the $38,000 resistance zone in the near term. Bitcoin Price Turns Green Bitcoin found a strong buying interest near the $31,000 zone and it started a steady increase. BTC broke many important hurdles near $35,000 to move into a positive zone. There was also a break above a major bearish trend line with resistance near $35,000 on the hourly chart of the BTC/USD pair. The pair even settled above the $36,000 resistance and the 100 hourly simple moving average. Bitcoin climbed above the $37,000 level and traded as high as $37,484. It is now consolidating gains above the $37,000 level. An immediate support is near the $36,500 level. The first key support is near the $36,000 zone. It is close to the 23.6% Fib retracement level of the upward move from the $31,050 swing low to $37,484 high. Source: BTCUSD on TradingView.com The next major support is near the $35,000 level and the 100 hourly simple moving average. The 50% Fib retracement level of the upward move from the $31,050 swing low to $37,484 high is the next support near the $34,250 level. On the upside, the first major resistance is near the $37,500 level. The main resistance is near the $38,000 zone, above which the price could rally towards the $40,000 level in the near term. Dips Supported in BTC? If bitcoin fails to clear the $38,000 resistance, it could start a downside correction. An initial support on the downside is near the $36,500 level. The first major support is near the $36,000 level. The main support is now forming near the $35,000 level and the 100 hourly SMA. If the price fails to stay above $35,000, the price could dive to $32,000. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level. Major Support Levels – $36,000, followed by $35,000. Major Resistance Levels – $37,500, $38,000 and $40,000.

Bitcoin price is now up $6,000 from yesterday’s low in a flash. A long wick below support is now left behind, forming a Japanese candlestick formation called a dragonfly doji. With a large follow through by crypto bulls already, a daily close above $36,000 could leave a reversal pattern behind on the charts. But to how high might the once trending cryptocurrency climb if it can find a bottom? And is this a dead cat bounce, or the full recovery back into a bull market the masses are waiting for? Will A Dragonfly Doji On The Daily Let Bitcoin Fly Again? Although so many investors in cryptocurrencies are quick to write technical analysis off as witchcraft or little more than a guessing game, there is a real technique to it. When done properly, there are strict rules to follow that confirm signals along with statistics that show what type of results to expect from the behavior. Studies have been done on chart patterns, indicators, and more – all the way down to the candlestick. Related Reading | What The Last Leg Up In The Bitcoin Bull Market Could Look Like The study of Japanese candlesticks is as basic as it gets, but that doesn’t discount its effectiveness. The open, close, low and high of each candle can provide all kinds of information about the market and what to expect. For example, the dragonfly doji on Bitcoin daily charts by itself is enough to suggest a reversal is finally here. And with bullish follow through today, a more prominent reversal pattern is also forming. A dragonfly doji could lead to the completion of a reversal pattern | Source: BTCUSD on TradingView.com What The Reversal Pattern Could Mean For Crypto With a dragonfly doji pattern on the daily, and a TD 9 buy signal on the weekly timeframe, Bitcoin bulls just need to hold on until Sunday night’s weekly candle close and a reversal will look a lot more likely. The above mentioned dragonfly doji is the center-point of a morning star reversal pattern in the making. If bulls can close today’s daily candle and follow through into tomorrow, a more extensive move higher is likely. Related Reading | Time To Pay Attention: Bitcoin Indicator Behavior Mimics Historic Rally Resistance at $40,000 and $48,000 both could be potential stopping points before $50,000 is reclaimed. Above $50,000 should result in a retest of previous highs and if those are breached, then the bottom of this bull market correction will be set at $30,000. At that point, it would be time to turn back toward trying to catch the top of the market cycle, wherever that ends up being. And it all could start with a dragonfly doji on daily timeframes. Featured image from iStockPhoto, Charts from TradingView.com

Bitcoin price extended its decline below the $33,000 support zone against the US Dollar. BTC is currently recovering and it must stay above $30,000 to avoid a larger decline. Bitcoin extended its decline below the $33,500 and $33,000 support levels. The price is currently well below $35,000 and the 100 hourly simple moving average. There is a key rising channel forming with support near $32,300 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start a fresh decline if there is a break below $32,300 and $32,000. Bitcoin Price is Under Pressure Bitcoin remained in a bearish zone below the $35,500 support zone and extended its decline. BTC broke the $33,500 support level and settled below the 100 hourly simple moving average. The price even declined below the $32,000 support zone. A low was formed near $31,065 before the price started an upside correction. There was a break above the $32,000 and $32,500 levels. The price climbed above the 23.6% Fib retracement level of the recent decline from the $36,820 swing high to $31,065 low. However, the price is facing a strong resistance near the $34,000 level. It seems like the 50% Fib retracement level of the recent decline from the $36,820 swing high to $31,065 low is acting as a hurdle. Source: BTCUSD on TradingView.com There is also a key rising channel forming with support near $32,300 on the hourly chart of the BTC/USD pair. The first major resistance is near the $33,500 level. The main resistance is near the $34,000 zone, above which the price could test the 100 hourly simple moving average. More Losses in BTC? If bitcoin fails to clear the $34,000 resistance, it could continue to move down. An initial support on the downside is near the $32,500 level. The first major support is near the $32,300 level and the channel trend line. If there is a downside break below the channel support, the price could dive to $31,000. The main support is near the $30,000 level. If the bulls fail to protect the $30,000 support zone, there is a risk of a sharp decline. Technical indicators: Hourly MACD – The MACD is slowly gaining pace in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level. Major Support Levels – $32,300, followed by $31,000. Major Resistance Levels – $33,500, $34,000 and $35,000.

Bitcoin price keeps sinking, but has kept mostly sideways leaving bears unable to break support to new lows. With the trading range at a pivotal point, as one trading legend often says it is “time to pay attention.” The reason for the focus, is because what started as a fractal in price action, is now causing similar behavior in the Bollinger Bands that led to one of the most powerful pumps in Bitcoin history. Is that what’s next with bearish sentiment at such critical heights currently? Pause In Downtrend Leaves Traders Confused, Market In Fear Markets are cyclical and oftentimes sentiment lags behind price action. The recent uptrend in cryptocurrencies came to a pause when things were at their best – just as Coinbase Global went public, and prices were at all-time highs. Related Reading | Market Timing: Why Bitcoin Could Sweep Lows Before A Bounce It wasn’t until more than 50% from the price per BTC was shed before investors started to become bearish on Bitcoin. Over the last several weeks since the big drop in May, a symmetrical triangle has been forming but it might not play out the way text book technical analysis would suggest. The Bollinger Bands closely match the “China pump” from 2019 | Source: BTCUSD on TradingView.com Sentiment is at extreme fear and a technical indicator that can be used to forecasts bounces, the Bollinger Bands, looks a lot like the last time the market reached a pause in a new downtrend like this. At that time, the creator of the tool, John Bollinger, warned it was now “time to pay attention” as trickery could soon reveal, and reveal it did. Bitcoin “Squeeze” Could Lead To Epic Pump With sentiment at the very worst and a sweep of lows now checked off the list, Bitcoin price could pump back higher to either retest or reclaim previous highs. Price action has repeatedly wicked into the lower Bollinger Band without a big break, suggesting that this latest test of the lower band is a bear trap setup called the “Gimmee Bar” discovered by Joe Ross. Several wicks into the lower BB suggest a bear trap | Source: BTCUSD on TradingView.com In 2019, the top cryptocurrency couldn’t recover the lost level, but the bull market is a lot different this time around. Holding the level here would result in the first major bull market correction of the rally continues from here. Related Reading | Bitcoin Bulls And Bears Alike Beware Of Potential Pump And Dump Fractal If the level cannot be reclaimed, much like the China pump of late 2019 failed and led to new lows, so too will any unfinished recovery from here. Regardless of what happens, it is worth paying extra close attention the next several days until Bitcoin price choses a new direction. Featured image from iStockPhoto, Charts from TradingView.com

Bitcoin price failed to stay above the $35,000 support against the US Dollar. BTC is declining and it is likely to extend losses below $33,000 in the short-term. Bitcoin started a fresh decline after it broke the $36,500 and $36,000 support levels. The price is currently well below $36,000 and the 100 hourly simple moving average. There was a break below a major ascending channel with support near $35,600 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to continue lower below the $33,000 and $32,000 support levels. Bitcoin Price is Down Over 5% Bitcoin failed to stay above the $36,500 support zone and extended its decline. BTC broke the $35,500 support level and settled below the 100 hourly simple moving average. There was a clear break below a major ascending channel with support near $35,600 on the hourly chart of the BTC/USD pair. The pair gained pace below the $35,00 support level and it even broke $34,200. There was a spike below the $34,000 level and the price is currently struggling to recover. An immediate resistance is near the $34,150 level. It is near the 23.6% Fib retracement level of the recent drop from the $36,824 high to $33.350 low. Source: BTCUSD on TradingView.com The first major resistance is near the $35,000 level. The 50% Fib retracement level of the recent drop from the $36,824 high to $33.350 low is also near $35,100. The main resistance is near the $36,000 zone and the 100 hourly simple moving average. A clear break above the $36,000 level could reverse the current bearish bias. More Losses in BTC? If bitcoin fails to clear the $35,000 resistance, it could continue to move down. An initial support on the downside is near the $33,200 level. The first major support is near the $32,500 level. The main support is near the $32,000 level. If the bulls fail to protect the $32,000 support zone, there is a risk of a sharp decline. In the stated case, the price could even struggle to stay above the key $30,000 support zone. Technical indicators: Hourly MACD – The MACD is now gaining pace in the bearish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level. Major Support Levels – $33,200, followed by $32,000. Major Resistance Levels – $34,150, $35,000 and $36,000.

Bitcoin price has been stuck trading within a small symmetrical triangle. These continuation patterns tend to suggest another equal sized move down is coming. However, a sweep of lows would “perfect” a buy setup that could initiate a pump and dump fractal from years ago. The pump and dump would be designed to further confuse sentiment and take advantage of the sudden shift to low liquidity and thin order books. Here’s what the fractal looks like and what it says about the coming price action. Market Timing: Why You Should Wait For The “Perfect” Buy Setup Bitcoin price action is confusing at the moment. The cryptocurrency is consolidating, but unable to break any lower, nor have bulls been able to stage a rebound. Related Reading | Market Timing: Why Bitcoin Could Sweep Lows Before A Bounce The weekly downtrend has now reached a critical point, however. The weekly TD Sequential indicator is now at a 9 count. The market timing tool hints at a possible reversal, but a TD 9 is much more effective when “perfected.” The TD 9 count remains to be perfected. Is a sweep of lows next? | Source: BTCUSD on TradingView.com The parameters of a “perfect” buy setup involves the final 8 or 9 candle sweeping the lows of the previous candles. This means for the weekly buy setup to be just right, below $30,000 and support must be taken out. The scenario bizarrely almost matches exactly the crash from above $10,000 to $7,800. Lows then were swept to $7,200, perfecting the buy setup and leading to one of the largest intraday pumps in the history of Bitcoin. Bitcoin Pump And Dump Fractal Examined: What To Expect Examining the two structures more closely shows just how accurate this fractal could end up being. The key differences between the price action then and now, was that there was even more upside pressure creating several more tops instead of the blow-off of June 2019. Still, the market structure is similar, as is support, resistance, and price action. With the timing also on the side of coincidences, along with a set of false breakout to the upside, another fakeout to the downside would lure and trap shorts expecting the target of the symmetrical triangle to be reached – and instead find themselves squeeze back to $50,000. The fractal suggests a massive pump and dump is coming | Source: BTCUSD on TradingView.com At that point, the fractal suggests that target is ultimately reached, albeit much later on around Black Thursday. The target of the symmetrical triangle based on the measure rule is somewhere around $23,000 per BTC. The ease in which whales can move the price of Bitcoin back and forth is due to the sudden default in liquidity and thinner order books than they were just weeks ago. Related Reading | What The Last Leg Up In The Crypto Bull Market Could Look Like However, as similar as the fractal may look and sentiment just right, there’s no telling what might happen and the past isn’t often a good indicator of future performance. Is this time different? Featured image from iStockPhotos, Charts from TradingView.com