Bitcoin

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

Bitcoin price retested the $35,000 support level against the US Dollar. BTC is now rising, but it must clear $37,000 and the 100 hourly SMA for a steady increase. Bitcoin is recovering higher from the $35,000 support zone. The price is currently well below $37,000 and the 100 hourly simple moving average. There was a break above a key bearish trend line with resistance near $36,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair must clear $37,000 and the 100 hourly SMA to start a fresh increase in the near term. Bitcoin Price is Facing Key Resistance Bitcoin failed to stay above the $37,000 support zone and extended its decline. BTC even broke the $36,000 support level and settled below the 100 hourly simple moving average. There was a spike below the $35,000 support level. A low was formed near $34,830 and the price is now correcting higher. There was a break above the $36,000 resistance level. The price climbed above the 50% Fib retracement level of the recent decline from the $37,915 high to $34,830 low. There was also a break above a key bearish trend line with resistance near $36,000 on the hourly chart of the BTC/USD pair. The pair is still well below $37,000 and the 100 hourly simple moving average. Source: BTCUSD on TradingView.com The 76.4% Fib retracement level of the recent decline from the $37,915 high to $34,830 low is also near $37,200 to act as a major hurdle for the bulls. If there is a clear upside break above $37,000 and $37,200, the price could start a major increase. The first major resistance is near the $38,500 level. The main resistance is still near the $40,000 zone. A clear break above the $40,000 level could set the pace for a larger increase. Fresh Decline in BTC? If bitcoin fails to clear the $37,000 resistance, it could start a fresh decline. An initial support on the downside is near the $36,000 level. The first major support is near the $35,500 level. If there is a downside break below the $35,500 support and $35,000, the price could start a sharp decline towards $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 above the 50 level. Major Support Levels – $36,000, followed by $35,500. Major Resistance Levels – $37,000, $38,500 and $40,000.

Bitcoin price climbed above the $38,000 resistance against the US Dollar, but it failed near $39,500. BTC is correcting lower and it might dive if it breaks the $37,000 support. Bitcoin failed to gain momentum for a break above $39,500 and $40,000. The price is currently trading above $37,000 and the 100 hourly simple moving average. There is a major rising channel forming with support near $37,400 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair must stay above $37,000 and the 100 hourly SMA to avoid a major decline. Bitcoin Price Trims Gains Bitcoin started a decent increase above the $37,500 resistance zone. BTC even broke the $38,000 resistance level and settled well above the 100 hourly simple moving average. The bulls gained strength for a push above the $39,000 level. However, they struggled to a move towards the $40,000 level. The price topped near the $39,500 level and it recently started a fresh decline. There was a break below the $38,500 and $38,000 levels. Bitcoin traded below the 50% Fib retracement level of the upward move from the $35,925 swing low to $39,500 high. It is currently trading above $37,000 and the 100 hourly simple moving average. An immediate support on the downside is near the $37,500 level. There is also a major rising channel forming with support near $37,400 on the hourly chart of the BTC/USD pair. The channel support is close to the 61.8% Fib retracement level of the upward move from the $35,925 swing low to $39,500 high. Source: BTCUSD on TradingView.com On the upside, an immediate resistance is near the $38,200 level. The first major resistance is near the $39,500 level. The main resistance is still near the $40,000 zone. A clear break above the $40,000 level could set the pace for a larger increase. Downside Break in BTC? If bitcoin fails to clear the $38,500 resistance, it could extend its decline. An initial support on the downside is near the $37,500 level. The first major support is near the $37,200 level and the 100 hourly simple moving average. If there is a downside break below the $37,200 support and $37,000, the price could start a sharp decline towards $35,000. 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 below the 50 level. Major Support Levels – $37,200, followed by $37,000. Major Resistance Levels – $38,500, $39,500 and $40,000.

Bitcoin price just saw the worst high timeframe correction in years, falling sharping by 50% and instilling fear across the market. The turn in sentiment has everyone guessing where the now bearish cryptocurrency could fall to, but according to past cycles, it could get a lot worse before it gets better. Here’s more on why Bitcoin price could fall back toward $14K before the bear phase is over. Bitcoin Yearly Candle Turns Bearish, But What About The Bull Market? The arguments are all similar: if that was the top in Bitcoin this was the shortest and weakest bull market yet. The cryptocurrency would have fallen short of expectations by hundreds of thousands of dollars. That thought alone could result in some extremely bearish sentiment – even more negative than what’s going on across the market currently. Related Reading | Bulls Beware: Bears Have Only Now Taken Control Over Bitcoin There are calls for $20K BTC as the bottom, which would be another 50% from here. Another sizable drop seems unlikely given the potential the asset has, but as a “highly speculative” asset Bitcoin is extremely volatile. That volatility could result in a full retracement back to $14K. The yearly candle never touched the previous support level | Source: BLX on TradingView.com Why BTC Could Be Headed Back To $14K Per Coin This Year In technical analysis, the highest timeframes always matter the most. Bitcoin was bullish on the daily, but the weekly MACD turning bearish signaled the top before the drop even began. Monthly timeframes are even more dominant, and there’s a bearish evening star reversal pattern now confirmed on the monthly chart. Getting even more distant, things could be even more bearish. The short yearly candle and large wick to only the upside is unlike any other annual Bitcoin price candle before it. The candle is currently bearish, but the yearly chart could say more. In the past, the yearly candle to follow a breakout always comes back to nearly retest the previous yearly close that resulted in a bear market. It happened in the last two bull markets, but hasn’t during the current bull market. This time is clearly different so far, but will it stay that way? The same chart on weekly timeframes makes the picture clear | Source: BLX on TradingView.com If Bitcoin price were to retrace to the former yearly open before the bear market began, it would take the leading cryptocurrency by market cap back to $14K, which would be a roughly 78% retrace. 78% is significant for a number of reasons. For one, it falls short of the 80%+ parabolic curve retracement requirements, so it isn’t yet quite a bear market by BTC standards. Related Reading | Bitcoin Bear Market Comes Down To Pivotal June Close 78.6% is a key Fibonacci retracement level. Bitcoin price already retraced to the 50% mark, with 61.8% being the middle ground that also could act as a stopping point. Finally, 78% would closely match the 2013 retrace that crypto investors should be hopeful repeats. If it does, the final leg up of the bull market could be mind-blowing before a more extend bear market takes place. Featured image from iStock Photo, Charts from TradingView.com

Bitcoin price made another attempt to clear the $38,000 resistance against the US Dollar, but it failed. BTC is correcting lower, but it might find bids near the 100 hourly SMA. Bitcoin is still facing a strong resistance near the $38,000 zone. The price is currently trading well above $36,500 and the 100 hourly simple moving average. There is a connecting bullish trend line forming with support near $36,400 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair must stay above $36,000 and the 100 hourly SMA to remain in a positive zone. Bitcoin Price Eyes Fresh Increase Bitcoin started a decent increase above the $36,500 resistance zone. BTC even broke the $37,000 resistance level and settled well above the 100 hourly simple moving average. The bulls made another important attempt to surpass the $38,000 barrier. However, they failed to gain strength and a new weekly high was formed near the $38,200 level. The price is now correcting lower and it is trading below the $37,800 level. There was a break below the 23.6% Fib retracement level of the recent wave from the $35,928 swing low to $38,200 high. An immediate support on the downside is near the $37,000 level. Source: BTCUSD on TradingView.com The 50% Fib retracement level of the recent wave from the $35,928 swing low to $38,200 high is also near the $37,000 zone to act as a support. There is also a connecting bullish trend line forming with support near $36,400 on the hourly chart of the BTC/USD pair. On the upside, an immediate resistance is near the $37,600 level. The first major resistance is near the $37,850 level. The main barrier is still near the $38,000 zone. A clear break above the $38,000 zone is needed for a push towards the $40,000 level. Downside Break in BTC? If bitcoin fails to clear the $38,000 resistance, it could correct lower. An initial support on the downside is near the $37,000 level. The first major support is near the $36,500 level and the 100 hourly simple moving average. If there is a downside break below the $36,500 support and then the trend line, the price could start a major decline in the near term. 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 just below the 50 level. Major Support Levels – $36,500, followed by $36,000. Major Resistance Levels – $37,800, $38,000 and $40,000.