Prominent Analyst says Bitcoin needs to end November above $8,300 to invalidate bearish pressures
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Bitcoin has found acceptance under a key average and may see an extended move to the downside.
The top cryptocurrency on Sunday closed below the 50-week moving average. The newfound MA resistance is now seen at $7,238 and bitcoin is currently priced at $7,130 on Bitstamp.
In the past BTC has suffered deeper losses following a violation of the 50-week MA, according to popular fundamental and technical analyst Nunya Bizniz.
In May 2018, for instance, bitcoin fell below the 50-week MA at $7,619 and remained below the average for 12 months. By December 2018 the price was near $3,100 .
Before that, the drop below the crucial average support at $535 in August 2014 was followed by a deeper sell-off to $152 by January 2015.
It could be different this time, of course, as markets may put a bid under the cryptocurrency ahead of the reward halving due in six months.
The reward granted to Bitcoin miners for adding a block to the blockchain will be reduced from the current 12.5 BTC, down to 6.25 BTC following the halving. In the past, the cryptocurrency has put on a good show in the months leading up to the event. Note that the process is repeated every four years. |
Fibonacci Retracement Level Capping Gains
BTC: Price: $7,050 | Market cap: $129.27 Billion | 24-Hr Volume: $25.50 Billion
Trend: Bearish Bitcoin has bounced from six-month lows near $6,500 reached on Monday and needs to rise further by more than $1,000 over the next three days to confirm invalidate bearish pressure, according to popular analyst Willy Woo.
A quick move above $8,300 looks unlikely, however, since markets seldom witness a V-shaped recovery. This is because investors battered during the bear market tend to wait on the sidelines and re-enter market only after the asset shows signs of bottoming out.
Also, short-term technical indicators continue to report bearish conditions. Notably, the 5- and 10-day averages continue to trend south and will likely cap corrective rallies.
All-in-all, bitcoin is likely to trade in the range of $7,500 to $6,500 for the next few days.
Long-term trend: Neutral
BTC's failure to repeat history by picking a strong bid six months ahead of the reward halving has neutralized the bullish outlook.
That said, the recent slide is viewed as a buying opportunity by prominent analysts like Joseph Young and Josh Rager.
A bullish reversal would be confirmed if and when BTC breaks higher from the five-month falling channel. Read Analysis
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MATIC On A Major Rise MATIC: Price: $0.020 | MCAP: $54.8 million | 24-Hr Volume: $63.3 million
Short-term trend: Overbought MATIC continues to rise, up 32 percent on the day, according to data provided by Messari.
The rise can likely be attributed to the announcement on Nov. 18 of an upcoming "action-packed arcade-style racing game" housed in the decentraland metaverse.
Market conditions have hit overbought territory, illustrated by the daily RSI above 70, so expect some profit taking from savvy traders in the short-term, with a pullback to $0.018 (prior resistance). Long-term trend: Bull potential
MATIC has broken its long-term downtrend courtesy of Nov. 25's rise above $0.018, on the back of strong volume that resembles a reversal profile. Caution is warranted however, as a retest and then bounce from the area mentioned above is required for a continuation.
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| | | | Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments. |
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