Bitcoin (BTC) Finds Support at $4,200, What Next?

After a brief recovery mid-week that hinted at a possible bottom found, a fresh crash has decimated the cryptocurrency market this morning. After dipping sharply from $4,440, Bitcoin (BTC) managed to find support at $4,200, which has long been considered a critical support level. Should it breach it, though, the next test will likely be $3,000 – the level that buoyed up the markets in the brief September dip last year before the epic late November rally.

While last weeks drops have been attributed by some to be investors selling assets ahead of Black Friday, these new losses are too close to the time for that explanation. It’s more likely that these continuing declines are fuelled by a number of factors, including depressed tech stocks as a result of the on-going China-U.S. trade war, the DOJ’s Tether manipulation probe and the Bitcoin Cash (BCH) war that is driving hash power away from Bitcoin mining.

There is also mounting evidence to suggest price manipulation by Wall Street whales in order to accumulate ahead of the ICE’s Bakkt launch, although that little nugget of hope has now been delayed until late January next year, so if true, we may see similar dips again after New Years.
 

Black Friday Fever

Several exchanges have chosen to take advantage of Black Friday fever and sell assets at discount prices, with some going as far as giving away Bitcoin for free. Unfortunately, while these actions may grow adoption, they also serve to further devalue cryptocurrencies in the short term.

After the drop to around $4,150 on some exchanges earlier today, Bitcoin has shown signs of recovery, rallying up to the $4,250 range more recently. Whether or not this support will hold is unclear, with many bearish analysts becoming more and more convinced that Bitcoin’s real bottom is likely to be in the $3,000 range. Should it maintain support above $4,200, the next resistance level is $4,720 with strong resistance at $4,830.

Any analytical comparisons to last year’s epic mid-December bull run don’t hold up within today’s vastly altered landscape. In light of the BCH hash war, tighter SEC regulations, more substantial institutional interest, and an entirely different psychological viewpoint, to assume a similar event would happen this year is optimistic at best. However, considering that last years rally was almost certainly the result of market manipulation and left the majority investors in debt, maybe that’s a good thing.

AUTHOR Mark Hartley November 23, 2018, UTC, 4:41 am

David

Bitcoin price latest update: Cryptocurrency value to INCREASE due to high US debt level

ShapeShift CEO Erik Voorhees has said cryptocurrencies will boom during the next global financial crisis. The finance expert at the global trading firm believes the high level of US debt will cripple the economy unless more money is printed. He argues this will lead to an increase in cryptocurrency investment.

He said: “When the next global financial crisis occurs, the world will realise organisations with $20trillion in debt can’t possibly ever pay it back.

“Thus must print it instead, and thus fiat is doomed.

“Watch what happens to crypto.”

US lawmakers keep increasing the country’s debt ceiling, allowing for the federal government to take on more and more debt.

His theory is the debt level of world economies is unsustainable and will put states under pressure the next time there is a financial crash.

As a result, he believes quantitive easing will have to come into force, the process whereby governments print money, to help pay off the money they owe.

The more money in circulation the less it is worth, meaning ordinary families could be set to see their savings decrease in value.

Mr Voorhees believes this in turn could lead to more people investing in cryptocurrencies.

However, digital currencies are also a financial risk for investors due to their history of extreme volatility.

In 2017, Bitcoin’s value rocketed to more than double its value, reaching a high $19,783 in December.

However, it then plunged in 2018 to a low of less than $6,000 in June.

Since then the online money has stabilised and has seen no major rises or falls in its value.

 

City & Business | Finance

11/11/2018

 

David

Bitcoin holding strong resistance at 6500/6550

 

Bitcoin holding strong resistance at 6500/6550 keeps the outlook negative targeting 6400 (now hit). This is the best support for today & therefore a break below 6350 is a sell signal targeting 6320 & 6220/6200 (we bottomed exactly here last week) before the October low at 6100/6055. A break below 6000 is the next sell signal targeting 5900/5880 & the low for this year at 5780. This is NOT expected to hold for long in the bear trend.

Quite strong resistance at 6500/6550 (this trade worked perfectly) but shorts need stops above 6600. Bulls are only in control on a break above here. We then need a break above 6760 to target 6825 & strong resistance at 7000/7050.

 

Jason Sen

DayTradeIdeas.com | 05:16 GMT

David

Bitcoin (BTC) Aiming for $7,000 Next?

Bitcoin Price Key Highlights

• Bitcoin price is gaining traction on it bounce off the channel support on its 4-hour time frame.

• A move to the next upside targets might be in the works and the Fibonacci extension tool marks these.

• Technical indicators are hinting at weakening bullish momentum, though.

Bitcoin price looks ready to resume its climb and might aim for these upside targets marked by the Fib tool.
 

Technical Indicators Signals

The 100 SMA seems to be crossing below the longer-term 200 SMA to indicate that bearish pressure might return, but it could also be a delayed reaction to the latest slide. If the short-term MA is able to hold its head above the 200 SMA, it could reinforce the presence of bullish momentum.

Bitcoin price could aim for the 38.2% Fib extension from here as this lines up with the dynamic inflection points at the moving averages. The 50% level lines up with the mid-channel area of interest around $6,700 and the 78.6% level lines up with the top of the channel at $6,900. The $7,000 mark might also serve as psychological resistance just before the full extension at $7,075.

Stochastic is heading north so bitcoin price might follow suit while buyers are in control. However, the oscillator is nearing overbought levels to signal exhaustion and a possible return in bearish pressure. RSI has more room to go before hitting overdone levels, which means that buyers could stay in the game for a bit longer.

Bitcoin price seems to be rebounding from a rough start this week as a brand-new month is setting in. This typically brings more optimism and reopening of positions after booking profits at the end of the month, which also coincides with futures settlement.

Besides, the ICE Bakkt bitcoin futures are rumored to be in the works and might usher in stronger volumes and increased activity this November.

 

SARAH JENN | NOVEMBER 2, 2018 | 1:33 AM

David

Bitcoin Price – BTC/USD Approaching Area of Interest

Bitcoin is still trending lower inside its short-term descending channel but might be due for a bounce to the top. Support held and a correction to the Fibonacci retracement levels is underway.

Price is testing the 38.2% Fib currently, and this happens to line up with the mid-channel area of interest. Holding as resistance could send Bitcoin back to the swing low around $6,450 or the channel support closer to $6,425. A larger correction could test the 50% Fib that lines up with a former support area that might now hold as resistance, as well as the 100 SMA dynamic inflection point.

The 61.8% Fib is just below the 200 SMA dynamic inflection point and close to the channel resistance, which might be the line in the sand for a correction. The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse. The gap between the moving averages has been widening to signal strengthening bearish momentum.

Stochastic is heading higher to signal that bulls still have some energy left, and the oscillator has some room to climb before hitting overbought conditions. RSI also has some ground to cover before bulls are exhausted, which suggests that the correction could go on for a bit longer before sellers return.

Pic

Bitcoin might even have enough momentum to break past the channel top, provided market updates also turn out positive. As it is, investors still seem to be holding out for more directional clues and hoping to get confirmation that the earlier rallies might be sustained.

Institutional investment could be a strong factor, but that might have to wait until early next year. The near-term catalyst would likely be the bitcoin futures on ICE Bakkt and it appears that traders are waiting to see how this might impact prices first.

 

SARA JENN · OCTOBER 29, 2018 · 1:30 AM

David

Bitcoin – Can the Bulls Muster Up a Weekend Rally?

Bitcoin stuck in the ranges through the early part of the day, with the Bitcoin bulls needing to put some life back into the market to support a breakout.

Price action through the week was limited for Bitcoin, with a 0.06% gain on Friday one of only two days in the week where Bitcoin managed to avoid the red.

3-days in the red left Bitcoin down 0.88% for the current week, with Bitcoin now having fallen short of the 23.6% FIB Retracement level of $6,757 since 18th October, as the steam comes out of Bitcoin and the broader market.

After a relatively range bound start to the day on Friday, Bitcoin rallied to a morning high $6,597.4, breaking through the first major resistance level at $6,575.57 before falling back to the earlier part of the day’s ranges, with resistance at $6,600 pinning Bitcoin back on the day.

An early afternoon intraday low $6,511 held well above the day’s first major support level at $6,469.77, leaving Bitcoin at $6,500 levels through the day, a rare occurrence in the world of Bitcoin and reflective of the lack of volatility in the market.

On the news front, there was some chatter on SEC Commissioner Kara Stein’s view on the setting up of cryptocurrency funds, Stein stating that some internal guidelines on key considerations had been circulated, while she held back from confirming whether any regulated exchange traded funds would be approved before the end of the year.

The regulatory landscape continues to be one of the key obstacles for the SEC to give the green light, with the SEC Commissioner highlighting that there remains a need to get clarity on a range of regulatory issues before the markets can expect institutional money to flood in.

For now the cryptomarket and the Bitcoin bulls in particular, remain optimistic that the SEC will at least give the green light to the VanEck Bitcoin ETF, though it remains to be seen whether issues surrounding valuation, liquidity and custody have been sufficiently addressed.

At the time of writing, Bitcoin was up 0.33% to $6,552.9, with Bitcoin moving from a start of a day morning low $6,524.9 to a morning high $6,560 before easing back, the moves through the early part of the day leaving the day’s major support and resistance levels untested.

For the day ahead, a hold on to $6,550 levels would support a move through the morning high $6,560 to bring the day’s first major resistance level at $6,582.73 into play, while we will expect Bitcoin to fall short of $6,600 levels for a 3rd consecutive day, with the news wires likely to remain relatively silent on the regulatory front through the weekend.

Failure to hold on to $6,550 levels through the morning could see Bitcoin give up the morning’s gain to pullback through the start of the day morning low $6,524.9 to call on support at $6,496.33 before recovering, more material losses unlikely barring particularly negative news hitting the crypto wires.

Looking at the broader market, with Bitcoin’s dominance holding at around 53.6% and the crypto total market cap hovering at around $210bn, there’s been very little action across the majors with Ethereum continuing to hold onto the number 2 spot, Ripple’s XRP struggling to close the gap in spite of the Ripple team’s successes in the real world.

 

Bob Mason

43 minutes ago

David

Bitcoin (BTC) Price Analysis – Which Direction Can It Break Out?

Bitcoin is stuck in consolidation for yet another day as it moves back to the triangle bottom.

Bitcoin continues to move sideways inside a symmetrical triangle and range visible on the short-term time frames. Price recently bounced off the range resistance and also the top of the triangle, setting its sights back on the bottom.

The 100 SMA is below the longer-term 200 SMA to confirm that the path of least resistance is to the downside. In other words, selling pressure is more likely to persist. In that case, a break of the triangle bottom might be seen, sending price to the range support at $6,360 or onto a slide that’s the same size as the consolidation patterns.

Stochastic is also heading lower to confirm the presence of bearish momentum, but the oscillator is already dipping into the oversold region to signal exhaustion. Turning back up could revive bullish pressure and allow support zones to hold. RSI is starting to turn lower after previously cruising mostly sideways, also reflecting a pickup in selling pressure.

Investors seem wary about the launch of ICE Bakkt futures possibly as early as next month, likely recalling how the CME bitcoin futures launched last year are being blamed for the sharp drop that ensued since then. There is also some degree of wariness associated with the Tether controversy.

Looking ahead, traders could continue to hold out for any major catalysts that could spur and sustain a breakout in either direction. By the way developments are going these days, it appears that there could be further upside, particularly on positive regulatory updates and progress in institutional platforms.

Note that Fidelity will be making its institutional platform for bitcoin and ethereum more widely available as early as Q1 next year so anticipation could build up leading to it. After all, it could usher in strong inflows from banks and hedge funds eager to place bets on the industry.

 

Rachel Lee by Rachel Lee October 26, 2018

David

Bitcoin (BTC) Price Watch – Is This a Bullish Breakout Yet?

Bitcoin Price Key Highlights

• Bitcoin price has been trending lower inside a descending channel visible on its 1-hour chart.

• Price appears to be attempting an upside break as a few hourly candles are closing above the channel top.

• Technical indicators may be showing some hints of a pickup in bullish momentum.

Bitcoin price is trying to break out of its downtrend but has yet to test nearby resistance levels before sustaining a climb.
 

Technical Indicators Signals

The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, the downtrend is still more likely to resume than to reverse. Then again, the gap between the two moving averages is narrowing to signal slowing selling pressure and a potential bullish crossover.

Bitcoin price has yet to break past these dynamic inflection points before confirming a climb, though. And even then it would likely encounter some resistance at the $6,700 mark on its move north.

Stochastic is turning higher without even reaching the oversold area, indicating that buyers are eager to return. RSI is also on the move up and has a lot of ground to cover before reaching the overbought zone. Turning lower from that area could lead to a return in selling pressure, possibly at any of the nearby resistance levels.

Bitcoin price continues to wait for another set of positive catalysts that could allow the earlier surge to resume. For now, it is dealing with risk aversion in financial markets and uncertainty on the SEC decision for bitcoin ETF applications.

Traders might also be taking it easy leading up to the launch of ICE Bakkt bitcoin futures, especially since the ones from CME were blamed for the drop in price late last year. Still, bitcoin has a lot to look forward to in Q1 to Q2 next year on the Fidelity institutional platform.

 

SARAH JENN | OCTOBER 24, 2018 | 4:52 AM

David

Bitcoin (BTC) – Stuck in This Short-Term Range

Bitcoin Price Key Highlights

 

• Bitcoin price is still treading sideways, right in the middle of its range visible on the 1-hour and 4-hour charts.

• Price has yet to break out of the current consolidation to show whether it would make a test of support or resistance.

• Technical indicators seem to be suggesting that a move towards the bottom of the range is due.

Bitcoin price still seems to be waiting for directional clues as it moves sideways in the middle of a $600-sized range.

 

Technical Indicators Signals

 

The 100 SMA is below the longer-term 200 SMA to signal that the path of least resistance is to the downside. In other words, a move lower is more likely to happen than a break higher. The moving averages also appear to be holding as dynamic resistance levels as well.

Stochastic is turning lower after recently hitting overbought levels, also suggesting a return in selling pressure. This might be enough to take bitcoin price to the bottom of its range at $6,200. RSI is already on the move down to confirm that sellers have the upper hand.

If buyers are able to step in, a move to the range top at $6,800 could be seen. A break above this could lead to a rally of the same height as the rectangle while a drop below support could lead to a selloff of the same size as well.

There are a handful of positive developments in the bitcoin industry these days, but it looks like traders are waiting for bigger announcements or might be feeling anxious while the SEC continues to mull its decision on the ETFs.

The launch of Fidelity’s institutional platform is big news as this would usher in big flows from funds, banks, and financial institutions. This would boost volumes, activity, and demand, thereby shoring up prices.

 

 

SARAH JENN | OCTOBER 22, 2018 | 4:43 AM

David