Bitcoin Price Defies ‘Death Cross’ as Bulls Pin Hopes on $9.1K Bounce

Published at: Nov. 14, 2019

Bitcoin (BTC) price continues to trend lower, marking 5 consecutive lower highs as the price makes a stairstep decline in a falling wedge. Interestingly, the pattern is interpreted by many analysts as a signal of a potentially bullish outcome so perhaps there is still hope.

Crypto market data daily view. Source: Coin360

BTC USD daily chart. Source: TradingView

The price has pierced the $8,674 support three times over the past 4 days, increasing the chance that the price will drop to the lower trendline of the falling wedge at $8,480. The daily chart shows that Bitcoin had spent the week riding along the 200-DMA, a point which was lost earlier today. 

The volume profile visible range (VPVR) shows a volume gap between $8,780 and $9,062, meaning the Bitcoin could rally 3.45% to $9,062, a point which would bring the price above the 50-DMA and slightly below the Bollinger Band indicator moving average at $9,121. 

A move to $9,148 would set a 3-day higher high at the 100-DMA, bringing Bitcoin price out of the falling wedge and possibly serving as the first indication of a short-term trend change for investors. A pop above the falling wedge resistance would bring the price above the 50% Fibonacci retracement level, a point thoroughly discussed in a previous analysis. 

BTC USD daily chart. Source: TradingView

A move to the Bollinger Band indicator moving average at $9,121 would also bring Bitcoin price to the 61.8% Fib retracement level from the Oct. 25 move from $7,400 to $10,540. Bearish traders are calling for a much more significant drop and taking a bird’s eye view of the rally from $3,127 to $13,800 shows that the 61.8% Fib retracement level is situated at $7,840. 

BTC USD daily chart. Source: TradingView

This point is also strongly supported (3rd pink bar) and failure to bounce at this point could see the price sink as low as $6,846, the lower trendline of the larger descending channel beginning at the 2019 high. Bounces from this trendline have been strong and previous analysis and the VPVR suggests the $8,300 to $7,800 range as a possible support area where buyers are expected to show interest.

Bearish scenario

Taking a macro view of Bitcoin’s price action on the daily timeframe (chart above), further downside moves in the falling wedge could see the price drop to the support levels (pink bars) at $8,591 and $8,305. In the event of a falling wedge breakdown, the price could drop to $7,862 but before this happens it’s probable that buyers will have stepped in around $8,300 and $8,000. 

BTC USD 4-hour chart. Source: TradingView

At the time of writing, the 50-day moving average (DMA) and the 200-DMA are converging on the 4-hour timeframe, forming the oft-discussed dreaded death cross that traders have worried about at length over the past two weeks. 

Bullish scenario

On the 6-hour (or one can view the 4-hour chart above) timeframe traders will spot a divergence within the relative strength index (RSI). Given that falling wedges have a tendency to flip bullish, some traders might interpret this divergence as additional proof that Bitcoin could be on the verge of a trend reversal. 

Possibly, Bitcoin’s price will continue its current trend, bouncing off the support and resistance line of the falling wedge until price reaches the second (pink bar) support at $8,300 where buyers might show up to push the price back to $8,650. 

As mentioned earlier in the analysis, a high volume spike could see the price rally to $9,060, which would be a 9% gain from $8,300. Given that Bitcoin’s trading volume has reduced to a trickle and the current price action looks bearish until $8,373, traders are likely in cash, waiting to see if they can catch a bounce at $8,460 and $8,300. 

The views and opinions expressed here are solely those of the author (@HorusHughes) and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Tags
Related Posts
Another $1 billion wipeout: Why is Bitcoin seeing extreme price moves?
Nearly $1 billion worth of Bitcoin (BTC) futures contracts were liquidated on Jan. 13, a day after the big shakeout. The continuous loop of liquidations is causing extreme volatility and large price swings in the cryptocurrency market. What are futures liquidations, and why are so many Bitcoin positions being liquidated? In the Bitcoin futures market, traders borrow additional capital to bet against or for Bitcoin. The technical term for this is leverage, and when traders use high leverage, the liquidation threshold gets tighter. For example, if a trader borrows 10 times the initial capital, a 10% price move to the …
Bitcoin / Jan. 13, 2021
Bitcoin sees record 100 days above $10K as one analyst eyes ‘parabolic’ 2021
Bitcoin (BTC) has officially beaten a new record as BTC/USD trades above $10,000 for 100 days, and major gains should come next. As voting in the United States’ presidential election ended on Nov. 3, Bitcoin saw a landmark moment of its own — 100 days straight trading in five figures. Bitcoin sees record stretch above $10,000 The achievement is not just impressive as a record for $10,000-plus prices. According to previous data, once Bitcoin trades above these significant price levels for 100 days, BTC/USD swiftly increases by an order of magnitude. As Cointelegraph reported last week, the length of time …
Adoption / Nov. 4, 2020
Crypto Markets in The Green, XRP Sees Major Boost Briefly Overtaking ETH by Market Cap
Tuesday, Nov. 6: top cryptocurrencies have seen strong gains on the day, with Ripple (XRP) temporarily overtaking Ethereum (ETH) as the top altcoin by market capitalization. Market visualization from Coin360 Bitcoin (BTC) is up 0.3 percent over the last 24 hours, and is trading at around $6,447 as of press time. Having briefly dipped below $6,400 during the day, BTC has rebounded and is pushing a slightly higher price point. BTC is still down 1.67 percent over the past 30 days. Bitcoin 7-day price chart. Source: CoinMarketCap ETH has seen some growth over the 24-hour period, up 3.64 percent from …
Bitcoin / Nov. 6, 2018
Bitcoin Price Stays Static at $8,800 as NEO, BNB Steal the Limelight
Bitcoin price (BTC) continued its daily trading pattern on Nov. 13, hovering just under $8,800 after losing support at $9,000. Cryptocurrency market daily overview. Source: Coin360 Bitcoin tracks sideways below $9K Data from Coin360 showed another lackluster day for BTC/USD, with little progress over the past 12 or 24 hours. The week had begun with Bitcoin losing its foothold higher up, exiting a trading corridor between $9,000 and $9,500 and so far failing to reclaim it. Bitcoin seven-day price chart. Source: Coin360 As Cointelegraph reported, analysts had remained broadly bullish on longer-term market prospects. Now, however, the short term could …
Bitcoin / Nov. 13, 2019
Canada crypto regulation: Bitcoin ETFs, strict licensing and a digital dollar
In October, Toronto-based Coinsquare became the first crypto trading business to get dealer registration from the Investment Industry Regulatory Organization of Canada (IIROC). That means a lot as now Coinsquare investors’ funds enjoy the security of the Canadian Investment Protection Fund in the event of insolvency, while the exchange is required to report its financial standing regularly. This news reminds us about the peculiarities of Canadian regulation of crypto. While the country still holds a rather tight process of licensing the virtual asset providers, it outpaces the neighboring United States in its experiments with crypto exchange-traded funds (ETFs), pension funds’ …
Etf / Nov. 26, 2022