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Bitcoin Market Technical Analysis: November 22, 2017

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Bitcoin continues its bullish run making new highs on five of the last six trading days.

Following the last significant price drop which ended on November 12, the Bitcoin “bulls” have been on a rampage fully recovering all the ground lost from the last downward price swing and setting new high after new high.

But as we in the trading community know, markets are not made up solely of new highs every day. At some point the euphoria of long positions gaining profit will turn into profit-taking, at which point sellers (supply) will overcome buyers (demand), and price will retrace until a temporary equilibrium is reached (consolidation).

Technical analysis is now pointing towards a downward price swing for Bitcoin.

Chart #1: Bitcoin Daily

In Chart #1 above there are a couple of technical analysis observations that traders should be aware of.

First, Bitcoin is currently trading at the upper edge of the uptrend-channel that has been forming since September 15, 2017 (displayed by the gray shaded area). The three other similar occurrences in the uptrend-channel where followed by price retracing to the lower edge of the channel before initiating a price upswing to make new highs in the uptrend. In the last occurrence, it even seemed as if Bitcoin broke-down below the lower trend line to signal a reversal, but it immediately returned to the channel and resumed the uptrend.

The second observation is the last five price upswing (shaded in blue). The first four are all very similar in terms of ratio of upbars to downbars over the course of the price upswing (noted below each shaded area). The price upswing that Bitcoin is currently in the midst of is exhibiting a very similar visual pattern in the chart to those before it, and is approaching comparable numbers of upbars to downbars. The combination of these two observations along with the fact that we are entering a major holiday week in the Unite Sates which will result in a short trading week (meaning less volume), indicates that traders should prepared for a likely price retracement in the upcoming days.

The aforementioned observations are by no means an indication that the Bitcoin bull run is coming to an end and we should all consider going short. Quite the contrary, after the last downward price swing and the impressive subsequent recovery, the Bitcoin uptrend is strong as ever. If price action for Bitcoin remains consistent and a retracement back the lower line of the uptrend-channel takes place, or anywhere near it, the savvy trader will consider entering the market long at this point. Traders that already have long positions that are in-the-money will consider adding to them. We will be watching closely.

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Bitcoin

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

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Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

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Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

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Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

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Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…

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