Bitcoin

Bitcoin

Two Paths Of A Bitcoin Bull Run, And If A Bear Phase Is Next

Armando Morrison4 years ago2 years ago06 mins

Bitcoin price has plummeted more than 50% from recent highs, falling to as low as $30,000 in a matter of a flash. The selloff was enough to shock the entire market, causing the most liquidations and coins to be deposited since Black Thursday. There’s now talk of the bull run being over, however, there’s potentially two different paths that the cryptocurrency could take according to the RSI and past bull market performance. Is The Top Of The Crypto Bull Run In? After more than one full year of an uptrend, the volatile crypto market wiped out months of progress in days. The sharp reversal caused a 50% drop across the board, and it was enough to spook the market. Related Reading | Bear Phase Fractal Warns Of Pain, Bitcoin Bull Market To Remain Unbroken Several top signals also appeared, such as the Pi Cycle Top indicator, and the Relative Strength Index reaching overbought levels on the monthly. The monthly RSI, however, has been swatted down by bears and back into the normal range of the oscillator. The monthly RSI is looking especially bearish | Source: BTCUSD on TradingView.com There is also a bearish divergence stretching across past bull cycle tops, which could provide clues as to what’s to come. If bears can close the monthly Relative Strength Index back below overbought levels, then the bull market could be over according to scenario B from 2017. Scenario A, however, shows bull holding the key level, and making another drastic push higher to finish the bull market. Stormy Bitcoin Forecast Could Lead To Unexpected Scenario In scenario A, the stock-to-flow model should be proven accurate, and the leading cryptocurrency by market cap will head towards hundreds of thousands of dollars per coin. But what if the stock-to-flow model, and every major analyst that’s glanced at a Bitcoin chart is dead wrong about expectations, or something catastrophic happens? It sounds unrealistic, but nothing is guaranteed in markets – not even the success of Bitcoin. Droves of analysts have produced charts that demonstrate what that path to hundreds of thousands looks like, but what might a devastating collapse look like instead? Beware of a weak spot in the Ichimoku cloud | Source: BTCUSD on TradingView.com If a bear market takes place now and with the stock-to-flow model causing expectations to be so high, the short investment horizon of impatient investors could lead to a sharper selloff if BTC isn’t trading at hundreds of thousands before the year’s end. A bull market failure and failure to produce the results investors are expecting, could cause investors to abandoned the cryptocurrency completely. Unless they’re in it for the tech. Forewarning of such an event, is a weak spot in the monthly Ichimoku cloud. Related Reading | Lack Of “Capitulation” Volume Suggests Bitcoin Is Doomed To More Downside The monthly price chart in Bitcoin also is forming a massive bearish wedge taking place across nearly a decade. A breakdown could set the trajectory for passing through the Kumo twist, which is a common setup according to how the indicator itself works. And while anyone even remotely bullish on Bitcoin would immediately write this off, there’s no denying the cloud twist is there. Bulls also didn’t see the recent crash coming – could they also be blind to this possibility? Featured image from iStockPhoto, Charts from TradingView.com

Why The Chaos In Bitcoin And Crypto Is Only Beginning

Armando Morrison4 years ago2 years ago05 mins

Bitcoin price plummeted faster and lower than anyone expected, leaving behind a trail of liquidations and investors in shock. Crypto prices across the board tanked by more than 50%, and in most cases have already rebounded by at least 25% of what was lost. The sudden rollercoaster after such a steep ascent makes sense, sending volatility soaring. Except even with this much mayhem across the market right now, it is still nothing compared to what the cryptocurrency is used to. This fact could suggest that the bull market has only just begun with the latest crash. Comparing Crypto To A Thrill-Filled Theme Park Ride Theme parks can be a blast. Rollercoasters are especially fun, but definitely can give you a good scare. The ride starts slowly, slow building and rising in a methodical manner to keep anticipation climbing as heights increase. Once you get high enough, it is hard not to stop paying full attention to the ride to get a load of the view. It is in that moment when the momentum turns and in a flash you’re back where your started. Sound familiar? Related Reading | Lack Of “Capitulation” Volume Suggests Bitcoin Is Doomed To More Downside Bitcoin, like rollercoasters, can have a lot of twists and turns, and this latest crash hasn’t been very different than the cryptocurrency’s usual behaviors. The last year of “only up” has been a lot more unusual. Bitcoin usually rises and falls, wiping out 60 to 70% from the price per coin and market cap. It is only now with a mere 50% crash that volatility is picking up, suggesting either further collapse, only the start of the bull run, or possibly both scenarios. Historical volatility suggests that the Bitcoin is only just getting warmed up | Source: BTCUSD on TradingView.com HODL On: Notorious Bitcoin Volatility Has Only Just Returned Historical volatility is a tool used to measure – just like it sounds – how volatile an asset is throughout its history. When Bitcoin was in the earliest phases of price discovery, volatility was insanely high, and after the dust settled, it stayed flat for several years. It wasn’t until late 2017 when although prices had appreciated in crypto, the bull market really got going and historical volatility returned to Bitcoin. Related Reading | Bear Phase Fractal Warns Of Pain, Bitcoin Bull Market To Remain Unbroken Except it lasted for an even shorter phase than before. Even the small bullish impulse to $14,000 in mid-2019 resulted in more volatility overall in the cryptocurrency market. Today, even with a massive $28,000 per coin collapse, volatility in Bitcoin is still uncharacteristically low. This latest shock to the market, might only be the start of a storm that’s to come. Can you hold on and survive? Featured image from iStockPhotos, Charts from TradingView.com

Here’s Why BTC Could Rally If It Clears This Key Hurdle

Armando Morrison4 years ago2 years ago04 mins

Bitcoin price is recovering losses and trading above $40,000 against the US Dollar. BTC is likely to accelerate higher if there is a clear break above the 100 hourly SMA at $42,000. Bitcoin is showing signs of a decent recovery above the $40,000 level. The price is now facing resistance near $42,000 and the 100 hourly simple moving average. There was a break above a major bearish trend line with resistance near $42,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to start a strong rally if it settles above $42,000 and the 100 hourly SMA. Bitcoin Price Starts Recovery Bitcoin remained stable above the $36,500 and $38,000 support levels. BTC extended its recovery wave above the $40,000 resistance level and moved into a short-term positive zone. There was a clear break above the 50% Fib retracement level of the last key decline from the $45,774 swing high to $29,748 swing low. Moreover, there was a break above a major bearish trend line with resistance near $42,000 on the hourly chart of the BTC/USD pair. The pair is now facing resistance near $42,000 and the 100 hourly simple moving average. The 76.4% Fib retracement level of the last key decline from the $45,774 swing high to $29,748 swing low is also acting as a resistance. Source: BTCUSD on TradingView.com A clear break above the $42,000 zone and the 100 hourly simple moving average could open the doors for a larger rally. An immediate resistance is near the $43,200 level. The next major resistance is near the $45,775 level. A close above the $45,775 level could set the pace for a move towards the $48,000 resistance zone. Fresh Drop in BTC? If bitcoin fails to clear the $42,000 resistance, there is a risk of a fresh decline. An initial support on the downside is near the $40,000 level. The first major support is now forming near the $38,000 zone. A downside break below the $38,000 support could start a fresh decline towards the $35,000 support zone in the near term. Technical indicators: Hourly MACD – The MACD is slowly losing pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. Major Support Levels – $40,000, followed by $38,000. Major Resistance Levels – $42,000, $43,200 and $45,775.

Here’s What Could Trigger A Bullish Reversal Above $40K

Armando Morrison4 years ago2 years ago04 mins

Bitcoin price was dumped yesterday by over 20% against the US Dollar. BTC is recovering from $30K and it might attempt a bullish reversal above $40K. Bitcoin tumbled below the $40,000 and $35,000 support levels. The price is now trading well below $42,000 and the 100 hourly simple moving average. There is a crucial bearish trend line forming with resistance near $39,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to start a strong bullish move if there is a break above $40,000. Bitcoin Price Starts Recovery Bitcoin failed to stay above the $42,000 and $42,000 support levels. BTC tumbled over 20% and it broke many important supports near $35,000. There was also a spike below the $32,000 support zone. A low was formed near the $29,750 and the price is now correcting higher. It broke the $35,000 resistance zone. There was also a break above the 50% Fib retracement level of the recent drop from the $45,775 swing high to $29,750 swing low. However, the price is trading well below $42,000 and the 100 hourly simple moving average. An immediate resistance is near the $39,000 level. There is also a crucial bearish trend line forming with resistance near $39,000 on the hourly chart of the BTC/USD pair. The trend line is close to the 61.8% Fib retracement level of the recent drop from the $45,775 swing high to $29,750 swing low. Source: BTCUSD on TradingView.com A successful break above the trend line resistance could set the pace for a strong move above the $40,000 resistance. The next major resistance is near the $42,000 level. A close above the $42,000 level could set the pace for a strong rally in the coming sessions. The next major resistance sits near the $46,000 level. Fresh Drop in BTC? If bitcoin fails to clear the $39,200 and $40,000 resistance levels, there is a risk of a fresh decline. An initial support on the downside is near the $36,000 level. The first major support is now forming near the $34,000 zone. A downside break below the $34,000 support could start a fresh decline towards the main $30,000 support zone in the near term. 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 likely to surpass the 50 level. Major Support Levels – $36,000, followed by $34,000. Major Resistance Levels – $39,000, $40,000 and $42,000.

Bitcoin

TA: Bitcoin Resumes Uptrend, Here’s Why BTC Could Rally Above $60K

Armando Morrison4 years ago2 years ago04 mins

Bitcoin price remained well supported near the $56,000 support zone against the US Dollar. BTC is rising and it may soon break the key $60,000 resistance zone. Bitcoin found support above $56,000 and started a fresh increase. The price is now trading well above the $57,500 level and the 100 hourly simple moving average. There was a break above a key bearish trend line with resistance near $57,900 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to accelerate higher above the $59,500 and $60,000 resistance levels. Bitcoin Price is Gaining Pace Bitcoin corrected lower from the $59,500 resistance zone. BTC declined below the $58,000 and $57,500 support levels. The price even spiked below the 100 hourly simple moving average, but it remained stable above the $56,000 level. A low was formed near $56,306 before the price started a fresh increase. There was a break above the $57,000 resistance levels. The bulls cleared the 50% Fib retracement level of the recent decline from the $59,501 high to $56,306 low. There was also a break above a key bearish trend line with resistance near $57,900 on the hourly chart of the BTC/USD pair. The pair is now trading well above the $57,500 level and the 100 hourly simple moving average. Source: BTCUSD on TradingView.com It is consolidating above the 76.4% Fib retracement level of the recent decline from the $59,501 high to $56,306 low. An immediate resistance is near the $59,500 level. A clear break above the $59,500 could open the doors for a break above the $60,000 resistance. In the stated case, the price could rally towards $62,000. Fresh Drop in BTC? If bitcoin fails to clear the $59,500 resistance or $60,000, it could start a downside correction. An initial support on the downside is near the $58,000 level and the broken trend line. The first key support is near the $57,500 level and the 100 hourly SMA, below which the price might test $56,500. There is also a connecting bullish trend line forming with support near $56,500 on the same chart. 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 – $58,000, followed by $57,500. Major Resistance Levels – $59,500, $60,000 and $62,000.

Bitcoin Fails Again, Here’s Why BTC Remains At Risk of More Losses

Armando Morrison4 years ago2 years ago04 mins

Bitcoin price failed once again to clear the $60,000 resistance zone against the US Dollar. BTC is showing a few bearish signs, but the $52,500 support holds the key. Bitcoin failed to gain pace above $59,500 and it even struggled to test $60,000. The price is now trading near the $55,500 support and the 100 simple moving average (H4). There was a break below a key contracting triangle with support near $58,000 on the 4-hours chart of the BTC/USD pair (data feed from Kraken). The pair is recovering losses, but it is facing a strong resistance near $57,000. Bitcoin Price Trims Gains Bitcoin cleared the $58,800 and $59,000 resistance levels. It even spiked above $59,500 level, but there was no follow through move. It struggled to even test the $60,000 resistance zone. As a result, there was a bearish reaction below the $58,500 and $58,000 support levels. There was also a break below a key contracting triangle with support near $58,000 on the 4-hours chart of the BTC/USD pair. The pair dived below the $55,500 level and the 100 simple moving average (H4). It traded as low as $53,445 and it is currently correcting losses. There was a break above the $54,000 and $54,500 levels. Bitcoin even climbed above the 23.6% Fib retracement level of the recent drop from the $59,590 high to $53,445 low. Source: BTCUSD on TradingView.com The price is now trading near the $55,500 support and the 100 simple moving average (H4). An initial resistance is near the $56,500 level. It is close to the 50% Fib retracement level of the recent drop from the $59,590 high to $53,445 low. The key resistance is now near the $57,000 level. A successful break above the $57,000 level is needed to start a fresh increase towards the $59,500 resistance zone in the near term. More Losses in BTC? If bitcoin fails to clear the $56,500 resistance or $57,000, it could extend its decline. An initial support on the downside is near the $54,500 level. The first key support is near the $53,500 level and the recent low. Any more losses might call for a test of the main $52,500 support zone. Technical indicators: 4-hours MACD – The MACD is slowly losing pace in the bearish zone. 4-hours RSI (Relative Strength Index) – The RSI for BTC/USD is now close to the 40 level. Major Support Levels – $54,500, followed by $53,500. Major Resistance Levels – $56,500, $57,000 and $59,500.

Bitcoin Shows Signs of Rally, Here’s What Could Trigger More Upsides

Armando Morrison4 years ago2 years ago04 mins

Bitcoin price recovered losses and surpassed the $56,550 resistance zone against the US Dollar. BTC is likely to rally if there is a close above $58,000 and the 100 hourly SMA. Bitcoin remained strong above $54,000 and it climbed above $56,550 The price is now facing resistance the $57,500 level and the 100 hourly simple moving average. There was a break above a key bearish trend line with resistance near $56,800 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start a strong increase if there is a close above $58,000 and the 100 hourly SMA. Bitcoin Price Recovers Losses Bitcoin declined sharply after it failed to test the $60,000 resistance. BTC broke the $57,500 and $55,500 support levels. However, it found support near $53,500 and it recently started a fresh increase. There was a decent recovery wave above the $55,000 and $56,000 levels. The price cleared the 50% Fib retracement level of the key decline from the $59,500 swing high to $53,460 swing low. There was also a break above a key bearish trend line with resistance near $56,800 on the hourly chart of the BTC/USD pair. The pair is now facing resistance the $57,500 level and the 100 hourly simple moving average. It is also stuck near the 61.8% Fib retracement level of the key decline from the $59,500 swing high to $53,460 swing low. Source: BTCUSD on TradingView.com To start a strong increase, bitcoin must clear the $57,500 barrier and the 100 hourly SMA. The next immediate resistance is near $58,000, above which the price could grind higher towards the $59,500 level. The main resistance is still near the $60,000 zone. Fresh Drop in BTC? If bitcoin fails to clear the $57,500 resistance or $58,000, it could start a fresh decline. An initial support on the downside is near the $56,500 level. A downside break below the $56,500 support zone could lead the price towards the $54,850 pivot level. Any more losses might call for a fresh test of the $53,500 support zone in the near term. Technical indicators: Hourly MACD – The MACD is slowly gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level. Major Support Levels – $56,500, followed by $54,850. Major Resistance Levels – $57,500, $58,000 and $59,500.

Double Bottom On The Dollar Could Be The End Of Bitcoin Rally

Armando Morrison4 years ago2 years ago06 mins

Bitcoin, Ethereum, and just about every other asset on the planet trades against the dollar on its most liquid trading pair, and the greenback is the base currency that all exchanges rates are based on. The power and influence of the almighty dollar cannot be understated, and the crypto market could soon feel the surprising sting of the global reserve currency. A double bottom could be forming on the dollar, with a hidden bullish signal that could bring a hurting to the currently overheated stock and crypto market. Here’s a closer at the double bottom formation that could put a stop to Bitcoin’s bull market. Double-Bottom Forms On The Dollar Currency Index The slow death of the dollar has let equities and crypto assets like Bitcoin fly like never before, during a time when the economy was on pause and unemployment was climbing. Stimulus money kept things afloat, while those who didn’t need the money for essentials bought shares of GameSpot and hundreds of thousands of DOGE. Related Reading | Broken Parabola: Mapping Out The Bitcoin Bull Market And More The soaring market caps of assets everywhere was a glaring sign that inflation was getting out of hand, and the US government has been taking steps to reel things in. And it has already taken a toll on Bitcoin, resulting in the top cryptocurrency returning to below $55,000. Recent comments about stock market “froth,” “risk appetite,” and a random warning today from the SEC that Bitcoin is a “highly speculative” asset are suspect in terms of timing. At the same time, an Adam and Eve double bottom could be forming on the DXY Dollar Currency Index, and it is ready to take a dent out of crypto gains. Is an Adam and Eve bottom forming on the dollar? | Source: DXY on TradingView.com Why Bitcoin Could Be In Trouble If The Greenback Bounces An Adam and Eve double bottom is a rare structure that results in new highs. Failure, sends the asset tumbling even lower than the support level that greenback bulls are attempting to confirm as ironclad. This type of double bottom structure is also found on the likes of Litecoin and other cryptocurrency price charts. Superimposing the Bitcoin price chart specifically over the same DXY price chart, with the logarithmic MACD activated, things become more clear regarding the bearish change in trend that could be taking place. Bitcoin could be due for a reversal if the DXY rips higher | Source: DXY on TradingView.com The last major rebound and bullish crossover in the DXY also was the peak of the 2017 bull market. The dollar bounced sharply, while the first ever cryptocurrency started a bear market. Related Reading | Creator Of Flawless Top Indicator Says Bitcoin Isn’t Done, Despite Signal This time around, the dollar is taking its sweet time in turning around, forming a short-term double-bottom in addition to the longer-term one dating back to the last cycle top. There’s also a hidden bullish divergence forming on the LMACD, all while Bitcoin grinds at resistance, struggles with $60,000, and rare top signals have appeared. Is this the end of the Bitcoin bull run already, or will the dollar’s attempt to get back on its feet fall flat on its green back? Featured image from iStockPhoto, Charts from TradingView.com

Bitcoin

TA: Bitcoin Nosedives $10K, Here’s Why Recovery Could Face Hurdles

Armando Morrison4 years ago2 years ago04 mins

Bitcoin price declined over $10,000 against the US Dollar after Elion Musk’s tweet. BTC is now correcting losses, but the previous support near $52,000 could act as a hurdle. Bitcoin started a major decline from well above $55,000 and it even traded close to $45,000 The price is now trading well below $55,000 and the 100 hourly simple moving average. There was a break below a key rising channel with support near $57,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is correcting losses, but the bulls might struggle near $52,000 and $53,000. Bitcoin Price Dives 20% Bitcoin failed to clear the $58,500 resistance and reacted to the downside. BTC’s decline was got pace after Elion Musk’s tweet about bitcoin mining and not accepting it as payment. It sparked a strong bearish move below the $52,000 and $50,000 support levels. There was a break below a key rising channel with support near $57,000 on the hourly chart of the BTC/USD pair. The pair even dived towards the $45,000 level on Kraken. It is now trading well below $55,000 and the 100 hourly simple moving average. A low is formed near $45,000 and the price is now recovering higher. It broke the $47,000 and $48,500 resistance levels. Besides, there was a break above the 23.6% Fib retracement level of the recent decline from the $58,000 swing high to $45,000 swing low. Source: BTCUSD on TradingView.com An immediate resistance on the upside is near the $51,500 level. It is near the 50% Fib retracement level of the recent decline from the $58,000 swing high to $45,000 swing low. The main resistance is now forming near the $53,000 zone (the previous support). A close above $52,000 and $53,000 is needed to start a decent increase. Fresh Drop in BTC? If bitcoin fails to clear the $52,000 resistance or $53,000, it could start a fresh decline. An initial support on the downside is near the $48,500 level. A downside break below the $48,500 support zone could restart the decline. The next major support is near the $47,400 level. Any more losses might call for a fresh test of the $45,000 support zone in the near term. Technical indicators: Hourly MACD – The MACD is slowly gaining pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now recovering from the oversold zone. Major Support Levels – $48,500, followed by $47,400. Major Resistance Levels – $51,500, $52,000 and $53,000.

Bitcoin Breaks Key Support, Here’s Why BTC Could Dive Below $40K

Armando Morrison4 years ago2 years ago04 mins

Bitcoin price failed to stay above the key $42,150 support zone against the US Dollar. BTC is declining and it remains at a risk of a sharp decline below $40K. Bitcoin failed to stay above the main $42,000 and $42,150 support levels. The price is now trading well below $45,000 and the 100 hourly simple moving average. There is a new major bearish trend line forming with resistance near $44,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to continue lower below the $40,000 support levels in the near term. Bitcoin Price Breaks Double Bottom Bitcoin started a decent recovery from the $42,000 and $42,150 support levels. However, the bulls failed to push the price above the $46,000 resistance zone. As a result, the price started a fresh decline below the $44,000 level. The bears were able to push the price below the main $42,000 and $42,150 support levels (double bottom zone). It is now trading well below $45,000 and the 100 hourly simple moving average. Bitcoin tested the $40,500 support zone and it is showing a lot of bearish signs. An initial resistance is near the $41,800 zone. It is near the 23.6% Fib retracement level of the recent decline from the $45,774 high to $40,472 low. There is also a new major bearish trend line forming with resistance near $44,000 on the hourly chart of the BTC/USD pair. An intermediate resistance is near the $43,200 zone. It is close to the 50% Fib retracement level of the recent decline from the $45,774 high to $40,472 low. Source: BTCUSD on TradingView.com A successful close above the $43,200 and $44,000 levels could open the doors for a decent recovery in the coming sessions. The next major resistance sits near the $46,000 level. More Losses in BTC? If bitcoin fails to clear the $43,200 and $44,000 resistance levels, there is a risk of more losses. An initial support on the downside is near the $40,500 level. The main support is now forming near the $40,000 zone. A downside break below the recent low and $40,000 could spark another sharp decline in the near term. The next key support could be $36,500. 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 well below the 30 level. Major Support Levels – $40,500, followed by $40,000. Major Resistance Levels – $42,000, $43,200 and $44,000.

Bitcoin

Bear Phase Fractal Warns Of Pain, Bitcoin Bull Market To Remain Unbroken

Armando Morrison4 years ago2 years ago05 mins

The rug was just pulled across crypto, wiping out gains from the past week and then some. Bitcoin is now back at prices from March, and is at risk of falling deeper into a bear phase according to a fractal found in the recent price action. What’s notable, is that the same fractal suggests that the bull market isn’t yet over, despite the change to a bear trend for the time being. Here’s what the trajectory of Bitcoin could look like based on Elliott Wave Theory, the LMACD, and the recent reversal across crypto. Bitcoin Price Plummets Back Below $50,000, Matches Breakdown From 2019 A fractal is a repeating pattern that is found all throughout nature, or in this case, finance. On the price charts of coins, stocks, commodities and more, patterns can repeat again and again in a similar manner. Related Reading | Broken Parabola: Mapping Out The Bitcoin Bull Market And More Each pattern can even result in similar price action upon completion. For example, Black Thursday matched the second plunge of the 2014-2015 bear market bottom. Is this fractal from 2019 repeating once again? | Source: BTCUSD on TradingView.com The recent price action in Bitcoin, almost perfectly matches the first major correction since the bull market began – back in June 2019. Both times the logarithmic MACD crossed bearish, and the candle structure on high timeframes is strikingly similar. What Elliott Wave Theory And Momentum Indicators Say About The Bull Market If the fractal is accurate and produces similar results, Bitcoin could spend the next six months or so in a downtrend. The bear phase could reach a similar scope and severity as the 2019 peak, considering that the recent price parabola has been broken. A bear phase is more than likely to now follow, but that doesn’t necessarily mean the bull market is over. Elliott waves could provide clues to this market cycle’s conclusion | Source: BTCUSD on TradingView.com For those unfamiliar with Elliott Wave Theory, the study focuses on market impulses based on extreme changes in sentiment. Within each major “motive wave” are typically five impulse waves. If the primary wave is up, and Bitcoin has been in “always up” territory since its inception, then odd numbers waves are also up, with even waves moving against the primary trend. Related Reading | Double Bottom On The Dollar Could Be The End Of Bitcoin Rally Early 2019 would have acted as wave one of five, with the downtrend of wave two concluding on Black Thursday. That bounce began wave three, in which according to Elliott Wave characteristics, is “undeniable.” Wave four is a bit more tricky. It can sure feel like the top is in, but if wave three just ended, Bitcoin bulls’ best hope is that wave four is next. Wave four according to the practice, won’t ever retrace back into wave one’s path. This means that Bitcoin price will never again go below $13,800. If it does, it could suggest a failure, and the top cryptocurrency could be in serious trouble. Featured image from iStockPhotos, Charts from TradingView.com

Bitcoin

TA: Bitcoin Dives Further, Here’s Why BTC Could Find Bids Near $42K

Armando Morrison4 years ago2 years ago04 mins

Bitcoin price extended its decline below the $45,000 support zone against the US Dollar. BTC is declining and it could soon test $42,000 or $40,000 in the near term. Bitcoin started a major decline from well above $50,000 and it even traded close to $45,000 The price is now trading well below $45,000 and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $45,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to find bids near the $42,000 zone or $40,000 in the coming sessions. Bitcoin Price Extends Losses Bitcoin failed to settle above the $50,000 level and started a fresh decline. BTC broke many important supports near $48,000 and $47,000 to move further into a bearish zone. The price traded below the $45,000 support level and settled well below the 100 hourly simple moving average. Recently, there was a minor upside correction from the $43,800 zone. The price climbed above the $45,000 level, but it failed to extend gains. Source: BTCUSD on TradingView.com A high was formed near $46,645 before the price started a fresh decline. There was a break below the $45,000 support zone. There is also a key bearish trend line forming with resistance near $45,000 on the hourly chart of the BTC/USD pair. The pair even broke the recent swing low at $43,869 and it is extending losses. An initial support is near the $43,200 level. It is near the 1.236 Fib extension level of the upward move from the $43,869 low to $46,645 high. The main support is near the $42,000 zone. It is close to the 1.618 Fib extension level of the upward move from the $43,869 low to $46,645 high. Any more losses might call for a test of the $40,000 support zone. Fresh Increase in BTC? If bitcoin stays above the $42,000 support zone, there are chances of a decent increase. An initial resistance on the upside is near the $45,000 level and the trend line. The main resistance is near the $46,500 zone. A close above the $46,500 level is needed to start a steady increase in the coming sessions. 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 moving lower towards the 20 level. Major Support Levels – $42,000, followed by $40,000. Major Resistance Levels – $45,000, $46,500 and $48,000.