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Bitcoin Once Again Shrinks Below $4,000

December 3, 2018 at 18:47 by Arathur Stephen

Amid a series of positive industry developments, namely the announcement of a Nasdaq and VanEck-backed “crypto 2.0” futures plan, the flagship cryptocurrency, Bitcoin (BTC) continued to toss and turn on Monday.

Initially, many thought BTC was going to hold $4,000, as the market tried and failed to breach the aforementioned level of technical and psychological support. However, the bears eventually gained the upper hand over the bulls, dragging the asset quickly below $4,000 to a daily low of $3,900 on Coinbase.

Just like previous sell-offs, Bitcoin analysts weighed in on the price action, aiming to ascertain where cryptocurrencies will head next.

Bitcoin Analyst: “More Chop, Less Drop”

A prominent crypto trading extraordinaire, The Crypto Dog, took to Twitter on Sunday evening, to convey his most recent insight on the crypto market to his 105,000 followers. This update, issued when BTC was situated above $4,150, expressed that the analyst wasn’t convinced that a foray to the upside was in store for Bitcoin.

To support his claim, Crypto Dog drew a chart that underscores BTC’s inability to break out of a short-term ascending triangle, a foreboding sight for those not in the know.

According to him, the trader, who disclosed he opened a short position at $4,160, jokingly added that he was “fairly confident” he’d have an opportunity to cover “below $4,150 between now and 2020.”

While some laughed at his play, with one commenter expressing that the long-term Bitcoin bottom was potentially established below $3,500, his short-side bet became a winning play, as the digital coin dropped below $4,000 as mentioned earlier.

After the recent sell-off, which took crypto’s common Joes aback, Crypto Dog revisited his original thread on Dec. 2nd/3rd’s price action to discuss the prospects of BTC moving forward.

Meanwhile, the self-acclaimedfull-time blockchain investor and market commentator” pointed at the 50% level for the Fibonacci Retracement indicator, which is a common technique utilized by technical-centric traders. Crypto Dog stressed that if BTC holds above the Fibonacci level in question, currently situated at $3,928, he expects widespread capitulation to be put on hold, but for the incessant stormy up and down movement to resume.

He further added that there was not enough selling pressure to warrant a call for further sell-side action, nor a prediction for lower lows.

Nevertheless, in his eyes, the ongoing price action does not hide the fact that crypto remains in a wounded state, no matter how some desire to paint or spin it. In tandem with his aforementioned analysis, Crypto Dog has released the following statement, an evidently disheartening message for short to mid-term bulls:

We are still in a bear market. We are much closer towards the end of it, I imagine, but there is no sense being net positive BTC above $4k at this point. A bear market does not end and we go straight up. If the bottom is in, then I still imagine we at least re-test the lows.

Interestingly, since he posted the previously mentioned analysis, BTC, however, has held strong above the level he singled out, recovering to below $4,000 mark. So as it stands, the bears may need to delay their gruesome crusade for a little while longer.

Zealous Crypto Believers Maintain Long-Term Outlook

crypto-friendly managing partner at UTC Equities, Eric Thies, took Bitcoin’s most recent decline to his social media soapbox to double-down on his unshakable faith in the ten years old asset.

While Evidently referencing the speculation regarding where Bitcoin will eventually bottom, Thies noted that scrutiny over small nuances in purchase price is meaningless. The investors further added that he expects for BTC’s next floor to be above $20,000.

The UTC Equities representative is not the only one touting of such bullish sentiment. As previously reported by EarnForex, the head of research at Fundstrat Global Advisors, Tom Lee recently stated that while 2018’s bearish trend has deterred a majority of prospective investors, BTC still has big shoes to fill in the digital payment realm, and it is only “bent, not broken.”

BTCUSD Technical Analysis

Last week, the price of Bitcoin fell to a low of about $3,864 and entered a range bound movement. The cryptocurrency’s price hovered slightly above the $4,000 level for a while. On the daily chart, BTC is currently below the 12 and the 26-day Exponential Moving Averages (EMAs), which indicates the price may decline again. Today, BTC is still trying holding on to the $4,000 mark.

However, if the bears are able to break this level, BTC will find support at $3,600 which was one of its previous lows. Meanwhile, if $4,000 holds,  the digital coin will continue ranging above it. At the moment. the Stochastic is above the 20% range, which means BTC has the potential to move up and a buy signal.

A look at the 4-hour chart shows that the crypto’s price is in a bearish trend. On Monday, the 12-day EMA and the 26-day EMA resisted the price of Bitcoin and the digital currency is, as such, on a downward trend. The virtual currency is likely going to fall. Additionally, the Stochastic is above 20%, indicating bearish momentum.

Resistance levels: $7,000, $7,200, $7,400

Support levels: $4,000, $3,800, $3,600

If you have any questions and comments on Bitcoin today, use the form below to reply.

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