Over the past few months, analysts have been questioning if Bitcoin (BTC) really is in a bull market. Just two weeks ago, the leading cryptocurrency was down nearly 50% from its year-to-date peak of $14,000 — something that many took as a signal that Bitcoin was back in a bear market phase.
But, a key technical indicator has shown that the crypto market remains in a bullish phase. The thing is, another drop in the BTC price, even to $8,000, could make that indicator flip bearish for the first time since March 2018 — just shy of the $20,000 top of the last bull run.
Bitcoin Still in Long-Term Bull Market, Indicator Suggests
If you’ve followed cryptocurrency trading at all, you’ve likely seen the terms “golden cross” and “death/bear cross” incessantly mentioned on Twitter and TradingView. For some reference, golden and death crosses in technical analysis refer to when moving averages (MAs) cross each other to signal a trend; golden crosses see short-term MAs crossing above long-term MAs, and death crosses the other way around.
According to a recent analysis by Byzantine General, a popular trader on Twitter, a bear cross of the 50-day exponential moving average and the 200-day exponential moving average was just averted. This implies that Bitcoin remains in a long-term bull trend, as golden and death crosses of these two moving averages have long been indicative of macro trends.
This isn’t the only indicator implying such. Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.
To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.
Bitcoin (BTC) Price Turned Sell On Rallies Towards $9K
- Bitcoin price is trading in a bearish zone below the $8,880 and $9,000 resistances against the US Dollar.
- The price is struggling to recover and it is likely to face sellers towards $9,000.
- Yesterday’s major bearish trend line is intact with resistance near $8,980 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- There are a few key supports on the downside near the $8,600 and $8,500 levels.
Bitcoin price is facing an increase in selling below $9,000 against the US Dollar. BTC might correct higher, but sellers remain in control near $8,880 and $9,000.
Bitcoin Price Analysis
Yesterday, there was a decent recovery in bitcoin above $8,850 and $8,900 against the US Dollar. Moreover, BTC climbed above the $9,000 resistance and the 100 hourly simple moving average.
However, the upward move was capped by the $9,150 resistance. A high was formed near $9,150 and the price started another decline. It broke many supports near the $9,000 and $8,900 levels.
Additionally, there was a close below $8,850 and the 100 hourly simple moving average. Finally, the price broke the $8,700 level and traded to a new monthly low near the $8,612 low.
It is currently correcting higher above the $8,700 level. Besides, bitcoin is trading above the 23.6% Fib retracement level of the recent decline from the $9,150 high to $8,612 low. On the upside, there are many resistances, starting with $8,800 and up to $9,000.
The first major resistance is near the $8,880 level and the 100 hourly SMA. It also represents the 50% Fib retracement level of the recent decline from the $9,150 high to $8,612 low.
The main resistance on the upside is near the $9,000 level. More importantly, yesterday’s major bearish trend line is intact with resistance near $8,980 on the hourly chart of the BTC/USD pair. Therefore, bitcoin is likely to face a strong resistance near the $8,880 and $9,000 levels.
On the downside, an initial support is near the $8,680 level. The first key support is near the $8,600 level, below which there is a risk of an extended decline towards the $8,500 support area.
Looking at the chart, bitcoin is showing signs of a short term upside correction above $8,700. Having said that, the bears are likely to protect gains near the $8,880 and $8,980 resistance levels. Only a close above $9,000 might start a strong recovery in the near term.
Hourly MACD – The MACD is struggling to gain strength in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently recovering towards the 50 level.
Major Support Levels – $8,600 followed by $8,500.
Major Resistance Levels – $8,880, $8,980 and $9,000.
Facebook ordered by Dutch court to take down fake Bitcoin ads
With the growing popularity of cryptocurrencies and Bitcoin, scams pertaining to the same have also been on a surge. Pictures of celebrities touting investments related to Bitcoin have time and again surfaced all over the internet. John de Mol, a Dutch television producer, is the latest to fall prey to such fake advertisements.
Advertisements of the celebrity promoting Bitcoin-related investments were found to be appearing on Facebook. Soon after the Dutch media tycoon came across the same, he urged Facebook to take it down. The social media giant, however, did not respond to recurring requests
A Dutch court has now ordered Facebook to take down the fake advertisements, ruling that if it fails to do so, the social media platform would have to pay a fine of 1.1. million Euros. Additionally, the Dutch media tycoon had also called out Facebook for allegedly handing over his personal information to the scammers in question.
Since Facebook has policies regarding the publication of advertisements on its platform, the court ruled,
“Facebook’s arguments that it is just a neutral funnel for information and therefore cannot be obligated to act, is not acceptable.
The company plays too active a role with respect to advertisements, which form its primary business model to argue that.”
The social media platform has now, reportedly taken down the fake advertisements in question.
This isn’t the first such case, however. Previously, pictures of the Founder of MoneySavingExpert.com, Martin Lewis, were used in over 100 Facebook ads to promote a similar Bitcoin scam.
Even prominent Hollywood actress, Kate Winslet, wasn’t immune to such a scam, with Winslet’s image and fake quotes attributed to her being used to promote a Ponzi coin, Bitcoin Code. Winslet went on to respond to the scam via legal means.
Bitcoin price prediction: BTC/USD capped by resistance levels at $8,900 and $9,025 – Confluence Detector
- BTC/USD had a heavily bearish Monday, where the price dropped from $9,035.30 to $8,721.25.
- The confluence detector shows one strong support level on the downside at $8,525.
BTC/USD has had a bullish start to Tuesday and is currently priced at $8,738.65. This follows an extremely bearish Monday wherein the price dropped from $9,035.30 to $8,721.25. The daily confluence detector currently shows two healthy resistance levels at $8,900 and $9,025. On the downside, there is a support level at $8,525.
BTC/USD daily confluence detector
$8,900 has the one-day Fibonacci 61.8% retracement level and one-week Fibonacci 23.6% retracement level, while $9,025 has the 4-hour Bollinger band upper curve and one-week Fibonacci 38.2% retracement level.
On the downside, the $8,525 support level has the one-month Fibonacci 61.8% retracement level and one-day Pivot Point support one.