Another day has passed with very little activity on Bitcoin markets. The king of crypto continues to consolidate as its trading channel tightens up in anticipation of another big move. Technical indicators may give us a clue as to which direction BTC will take next.
Another Week at Support For Bitcoin
Weekends are usually pretty quiet for crypto trading and this Sunday has been no different so far. With very little activity during the Asian session, Bitcoin has remained range bound in the low $8,300 region. A brief move up to $8,400 yesterday could not produce any more momentum as the 50 hour moving average proved to be too strong a resistance level.
According to Tradingview BTC has been flat since its Friday pump and dump and the overall down trend is still intact with a death cross approaching on the daily timeframe. Analyst and trader, Josh Rager, has been looking into fractals which could offer some clues as the next direction.
“Aren’t exactly the same but quite similar price action after the previous capitulation before the market bottom. My guess is some more market sideways but not nearly as long.”
$BTC – Fractal Fun
Aren’t exactly the same but quite similar price action after the previous capitulation before the market bottom
My guess is some more market sideways but not nearly as long
Isn’t it hard to believe that the capitulation from $6k to $3k was almost a year ago pic.twitter.com/YvIiMYYhbc
— Josh Rager ? (@Josh_Rager) October 13, 2019
The market bottom following last November’s epic dump has also been analyzed by other traders who have noted remarkable similarities within the chart patterns. Late last week ‘CryptoHamster’ overlaid the two charts with striking similarity.
Is it a joke or something? $BTC $BTCUSD #bitcoin pic.twitter.com/Yi6YyCgoPP
— CryptoHamster (@CryptoHamsterIO) October 11, 2019
That capitulation came almost a year ago which is hard to believe as Rager noted. Since then BTC has surged 330% before correcting 40% to today’s levels.
‘CryptoHamster’ meanwhile observed the sideways channel on the 50% Fib retracement level which could also be a signal of a bigger breakout approaching.
“$BTC will either go above the previous trading zone and 23.6% Fibo, where a lot of shorts stops are concentrated, or BTC will go below the previous trading zone and 61.8% Fibo, where a lot of the longs stops are concentrated.”
Using those Fib levels, resistance lies at $8,600 while there is support at $8,200 and stronger levels below it at $8,000. When asked about next price levels, Rager added;
“Under $8k, of course that could happen, break below $8200 and it likely goes to $7700 to $7800 IMO”
Total crypto market capitalization has not moved much so far this weekend and is around $225 billion which is marginally higher than the same time last week. Altcoins still appear totally dependent on whatever Bitcoin does so there is still no sign of an altseason despite BTC dominance falling below 70% again.
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Author: Martin Young