Bitcoin’s Bull Run in 2015-2017 is Very Similar to What We’re Seeing Now, Analyst Opines

17m
zycrypto

Week of Crypto-Regulations: Governments in the US, China and India Take Heed

33m
coingape

Financial Analyst: Bitcoin Futures Are A Great Buy At $8,500

1h
bitcoinist

Despite Being “For Everyone,” Those Banned from Facebook Likely Can’t Use Libra

1h
beincrypto

Bitcoin Price (BTC) Signaling Bullish Continuation To $11K

1h
cryptonewmedia

Can Facebook’s Libra Be Used For Illicit Transactions?

1h
bitcoinwarrior

NYDAX: Seeking to Disrupt Wall Street and Pave the Way to Digitized Securities

1h
bitcoinwarrior

CGC Kyiv 2019, the largest blockchain gaming conference announced on Oct 10-11 – 1500 delegates from 50 countries, 100 speakers, VR, AR, hackathon

2h
block

Blockchain Life 2019

2h
block

The Future of Automation in UX and Design System Ecosystems with Jiří Třečák (Supernova) at TCE2019 Prague

2h
block

Bitso Get License to Operate XRP-based xRapid Transactions in Mexico

2h
thebitcoinnews

This Week in Cryptocurrency: July 19th, 2019

2h
thebitcoinnews

Zcash Forks Into New Blockchain Network Ycash

2h
thebitcoinnews

550 Bitcoins Locked in Ethereum-based Tokens Called WBTC

2h
thebitcoinnews

Libra Does Not Qualify as a Crypto, the World Doesn’t Need it: BlackRock CEO

2h
thebitcoinnews

Hayek’s 1984: Rediscovered Footage Shows Austrian Economist Predicting Bitcoin

2h
thebitcoinnews

7 Unorthodox Ways to Mine Bitcoin

2h
thebitcoinnews

Bitcoin Cash Milestones: Delivered Code, Upgrades and Platform Development

2h
thebitcoinnews

Bitcoin and Cryptocurrency Not Banned in India, Government Official Confirms

2h
coingape

Ex-Microsoft Engineer Charged with Mail Fraud After Stealing Millions in Digital Currency

4h
beincrypto

Interview: Ethereum development suite Truffle CEO on the future of dApps, regulation, and Libra

4h
cryptoslate

Sally Ho’s Technical Analysis 20 July 2019

5h
cryptonewmedia

Sally Ho's Technical Analysis 20 July 2019

5h
cryptodaily

KPGM to Work With Microsoft, Tomia and R3 on Blockchain Telecom Solutions

5h
cointelegraph

Bitcoin Legally Recognized in China, Is this Why BTC is Rising? |

6h
cryptonewmedia


Trouble for Bitcoin if Price Corrects Below $7,500

A prominent analyst fears difficulty for bitcoin if its spot rate drops below $7,500.

Nick Cote, the chief information officer at US-based Redacted Capital, said holding the $7,500-level is essential for bitcoin as it began correcting from a yearly high of $8,388 this Thursday. The analyst noted that bitcoin falling below $7,500 could switch the interim market bias in favors of bears, as shown in the chart below.

Bitcoin Price Breaks Below Interim Ascending Trend Line | Image Credits: Nick Cote

Cote showed bitcoin breaking below a crucial ascending trendline and forming lower lows towards $7,836.23. The price action flipped the then-current range support – defined by $8,210-8,246 – to resistance and brought new support targets in sight. One of these supports is at $7,500, a level which served as strong resistance to bitcoin’s multiple upside attempts during May 12-13 session. The same level turned support after the bitcoin price closed above it on May 13 between 1500-1600 UTC.

Six hours after Cote predicted a “deeper dip towards $7,500,” the bitcoin price formed a fresh lower low towards $7,748.72.

“So far so good,” said Cote. “Bounced into the throwback, bearish price action confirmed. Now let’s see if we can get the lower level tag. Holding at 7,500 would indicate more life, but below, yikes.”

So far so good. Bounced into the throwback, bearish price action confirmed. Now let’s see if we can get the lower level tag. Holding at 7,500 would indicate more life, but below, yikes. pic.twitter.com/sR2PTHSeZX

— Nick Cote (@mBTCPizpie) May 16, 2019

Cote expected the bitcoin price to continue its drop towards $6,700 if it drops below $7,500. The analyst did not explain why he chose $6,700 as his downside target. However, a more in-depth look at his chart spilled the secret out.

NewsBTC found that Cote was taking his cues from the bitcoin price action from May 13. The trading session on the day tested $7,500ish range on four consecutive occasions. The resistance area rejected those upside attempts and eventually woke the bears. The result was the formation of nine red candles posting more than 10-percent in losses ahead of the session close, as shown in the recreated chart below.

Bitcoin Testing $6,700 as Bear Target | Image Credits: TradingView.com

The only thing standing between $7,500 and $6,700 now was a red curve which was not there during the May 13 trading session. This 200-hourly moving average could offer generous support to a possible, extended bitcoin downside action, much like how the 50-hourly moving average (the blue curve) capped the bitcoin’s May uptrend. Breaking below the 200H MA was also a signal of intense selling action which, as Cote predicted, could quickly test the $6,700-target – or beyond.

The bitcoin price at press time is testing $7,752 as range support, another support level with a decent history. At the same time, the cryptocurrency’s hourly Relative Strength Index (RSI) is oversold, waiting for an upside correction.

A combination of these technical factors could influence bitcoin to surge higher on an hourly basis. Meanwhile, a falling trendline in violet above would serve as a barrier to claim a stronger bullish bias. So, if bitcoin stays below it, Cote’s prediction would remain relevant. If not, the cryptocurrency would likely attempt to close above its 2019 high to continue its ongoing bull run.

Regarding any copyrights issue, please contact us:content@hashbee.com.

0 comments