It has been a rough past few days for Bitcoin, with the cryptocurrency seeing immense sell-side pressure as bears aim at erasing the gains that have come about as a result of the recent uptrend.
Where the cryptocurrency trends next will depend largely on whether or not it sustained its recent break below its $17,000 support level.
If bulls cannot reclaim this level in the near-term, it could mean that a decline towards its multi-week support at $16,200 is imminent. If this level is broken, it could strike a serious blow to the cryptocurrency’s technical outlook.
One on-chain analyst is pointing to a disturbing trend that could indicate downside is imminent for BTC.
He notes that whales are depositing BTC into exchanges rapidly, which nearly always indicates that a flurry of sell-side pressure is imminent.
Until trading activity amongst these large Bitcoin investors dies down, he concludes that it will either see sideways trading or slide lower.
This comes as investors are already on edge, with mounting regulatory concerns and the recent $19,500 rejection both striking blows to its underlying strength.
Bitcoin Struggles to Gain Momentum as Bears Take Control
At the time of writing, Bitcoin is trading down just under 3% at its current price of $16,700. This marks a rebound from daily lows of $16,500 but a decline from highs of over $17,000.
Where the entire market trends next will depend largely on whether or not BTC can stabilize around its current price region or if it can push higher in the days ahead.
Any continued decline from here could strike a serious blow to its technical outlook, potentially causing it to see some serious mid-term losses.
This On-Chain Trend Spells Trouble for BTC
One analyst explained that a surge in trading activity amongst Bitcoin whales indicates that further downside could be imminent in the days and weeks ahead.
“BTC Whales are depositing to exchanges. I expect dumping in the short-run. All Exchanges Inflow Mean (144-block MA) hit 2 BTC. I think we’re in a danger zone. The price is likely to go sideways or down when whales are active on exchanges.”
Image Courtesy of Ki Young Ju. Source: CryptoQuant.
If whales begin taking profits and offloading their holdings, this could place some immense pressure on Bitcoin’s recent uptrend.
OKEx resuming BTC withdraws could also add some pressure to the cryptocurrency’s near-term outlook.
Featured image from Unsplash.
BTCUSD price data from TradingView.
Bitcoin price declined heavily, but it found support near $16,300 against the US Dollar. BTC is likely forming a double bottom pattern and it could rally if it clears $17,500.
- Bitcoin is holding the $16,300 support zone and trading above $17,000.
- The price is facing a strong resistance near $17,500 and it is well below the 100 hourly simple moving average.
- There is a key bearish trend line forming with resistance near $17,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- A possible double bottom pattern is emerging with support near $16,300.
Bitcoin Price Likely To Rally Again
There was sharp decline in bitcoin price below the $18,000 and $17,200 levels. BTC even spiked below $16,500 before the bulls protected the $16,300 support zone.
There were two attempts by the bears to push the price below $16,300 and $16,200, but they failed. A swing low is formed near $16,219 and the price is currently rising. It is trading above the 23.6% Fib retracement level of the recent decline from the $19,500 swing high to $16,219 low.
It seems like there is a possible double bottom pattern emerging with support near $16,300. The breakout resistance is forming near the $17,500 level.
Source: BTCUSD on TradingView.com
There is also a key bearish trend line forming with resistance near $17,500 on the hourly chart of the BTC/USD pair. The next major resistance is near the $17,850 or the 50% Fib retracement level of the recent decline from the $19,500 swing high to $16,219 low.
Bitcoin price is likely to start a strong increase if it clears the breakout resistance at $17,500 and then gains pace above $17,850. The next major resistance sits near the $18,400 level or the 100 hourly simple moving average.
Failure in BTC?
If bitcoin fails to clear the breakout resistance at $17,500, there is a risk of a fresh decline. An initial support on the downside is near the $16,800 level.
The first major support is near the $16,500 level. The main support is near the double bottom zone at $16,300. A daily close below the $16,300 and $16,200 levels could open the doors for another slide.
Hourly MACD – The MACD is now gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently recovering and approaching the 50 level.
Major Support Levels – $16,800, followed by $16,300.
Major Resistance Levels – $17,500, $17,850 and $18,400.
Bitcoin wicked as low as $17,100 minutes ago as buying pressure finally abated after weeks upon weeks of upward price action. The <a class="wpg-linkify wpg-tooltip" title="
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” href=”https://www.newsbtc.com/dictionary/coin/” data-wpel-link=”internal”>coin corrected from the $19,600 region yesterday to these lows for a drop of approximately 14%.
Analysts are currently divided over what comes next for the leading cryptocurrency.
Bitcoin was starting to roll over after it topped at $19,600 yesterday. Simultaneously, analysts noted that the cryptocurrency had begun to print bearish technical signals near the highs that suggested it was overbought.
Bitcoin Extremely Overbought
Mohit Sorout, a founding partner at Bitazu Capital, shared the chart seen below on the day that Bitcoin moved past $19,000.
The chart shows BTC’s price action relative to a Pi Cycle Top Indicator on the site Look Into Bitcoin. The indicator is a formula that has accurately predicted medium-term BTC highs in the past, including the mid-2019 high, along with a series of intra-trend highs in 2016 and 2017.
Should history repeat, there’s a good chance that Bitcoin will correct back toward the lower bound of the indicator, then will return higher to break above the upper bound of the indicator.
Alex Fiskum, an associate at Alice Capital, shared a similarly bearish chart. The chart shows that Bitcoin’s current market sentiment and positioning looks extremely similar to the 2019 highs and the all-time highs that were seen in 2017.
Chart of BTC's price action over the past three years with analysis by Alice Capital's Alex Fiskum
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Bitcoin Wicks to $17,100 Amid Pre-Thanksgiving Sell-Off
Bitcoin price broke to the upside and traded close to $19,500 against the US Dollar. BTC is currently correcting gains, but the previous resistance near $18,800 could provide support.
- Bitcoin traded above the $18,700 and $18,800 resistance levels before correcting lower.
- The price traded close to the $19,500 level and settled above the 100 hourly simple moving average.
- There is a major bullish trend line forming with support near $18,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start a fresh increase as long as it is above $18,800 and the 100 hourly SMA.
Bitcoin Price is Approaching Key Support
Finally, bitcoin price was able to clear the $18,700 and $18,800 resistance levels. BTC climbed above the $19,000 and $19,200 levels. A new yearly high was formed near $19,450 before the price started a downside correction.
There was a break below the $19,300 and $19,200 levels. The price traded below the 23.6% Fib retracement level of the upward move from the $18,083 swing low to $19,450 swing high. It is now approaching a major support zone at $18,800 (the recent hurdle).
There is also a major bullish trend line forming with support near $18,800 on the hourly chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the upward move from the $18,083 swing low to $19,450 swing high.
Source: BTCUSD on TradingView.com
The next support is near the $18,650 level or the 100 hourly simple moving average. Any further losses could start a major downside correction below the $18,500 support. In the stated case, bitcoin price might even revisit the $18,000 support zone in the near term.
Fresh Increase in BTC?
If bitcoin stays above the $18,800 support level and the 100 hourly SMA, there could be a fresh increase. An initial resistance is near the $19,200 level.
The first major resistance is near the $19,400 level. A successful close above the $19,400 level could open the doors for more gains above the recent higher. The main target for the bulls could be a new all-time high above the $19,800 and $20,000 levels.
Hourly MACD – The MACD is slowly losing momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently close to the 50 level.
Major Support Levels – $18,800, followed by $18,650.
Major Resistance Levels – $19,200, $19,400 and $19,500.
Bitcoin price is trading well above $19,000 and it is the last stop before reaching $20,000 and setting a new all-time high. With no further resistance above the former peak, will the cryptocurrency go fully parabolic and enter price discovery mode starting today? Or will a long-overdue correction unfold with the vast majority of investors sitting in profit?
Bitcoin Approaches All-Time High, Only Moments Remain Where Buying BTC Was Unprofitable
The first-ever cryptocurrency is on a complete tear, defying gravity and going parabolic over the last several weeks. From the start of November until now, the cryptocurrency has added another 40% to its now over 150% year-to-date returns.
At current prices, only one day remains – December 17, 2017 – where buying BTC was a losing investment. The unlucky few who hit “buy” that night and managed to snipe the exact top, have spent every day since at a loss.
Only a few hours Bitcoin traded at higher prices back in December 2017 | Source: BTCUSD on TradingView.com
But with every investor in the asset who bought any day outside of then in profit, could the incredible feat be the catalyst for the correction that thus far has never arrived?
This is Bitcoin, so anything is possible. While all of crypto is bullish on Bitcoin and had planned on holding for the next bull market top, the current disbelief rally blindsided everyone outside of the veterans with the most longevity in the space.
Related Reading | Crypto Calculated: How Ancient Math Predicts Bitcoin’s Next Top At $270K
A retest of $10,000 to $20,000 took a little more than a month, and now the entire world is watching crypto again. With Thanksgiving here, and the holiday acting as the catalyst for a bull market explosion and bubble the last time around, a repeat is very well possible.
And it all starts with Bitcoin taking out its former all-time high, which is set at around $19,800 depending on the exchange.
As a good rule of thumb, seeing Bitcoin trade at a price beyond $20,000 will be the final signal that the bull market has begun.
Featured image from Deposit Photos, Charts from TradingView.com