Sharp Dips And Bearish Trends
The sharp dips and bearish trends that the market currently exudes give new traders a chance to get in on the action without condemning their funds to the grave. However, these wild fluctuations give some analysts the shivers. With gaps abruptly crashing the market, only to recover minutes later, some analysts believe these intensive movements are filling in future gaps. This is a trend that has become expected of bitcoin.
Dependable bitcoin news sources seem to suggest that it’s best to just wait it out. This is because the market has a way of bouncing back from falling wedges.
“Keep your eye on the ball. If you pay close attention to historical trends and the very nature of bitcoin itself, you have to expect a reversal,” says Bitcoin News, a source for up to date information regarding the now-famous cryptocurrency.
Meaning that short term trends are not often what they appear to be.
“The fact that the update of local lows in the Bitcoin market is not bright and to see it, you need to look closely...On the daily timeframe, as we see sellers manage to break through the local protection of buyers.”
However, market recovery becomes a tricky projection, leaving some less enthused about bitcoin and it’s associated industries. Market trends are becoming seemingly harder to predict, as bitcoin valuation offers to hold no predictable correlation to world current events.
On Nov. 6, one of the major bull voices of cryptocurrency, Mike Novogratz suggested that recent price surges were due to China’s accelerated adoption of blockchain technologies, only later to find that president Xi Jinping confirmed that the country is not planning to mine bitcoin in the future.
Leaving traders wondering just what it is that is causing these massive bull runs, quickly followed by near market failure.
Current Bitcoin Pricing
The famed cryptocurrency risks falling below its key support threshold, suggesting the possibility of a long-term bearish turn. Which might spell disaster for invested traders.
However, from a historical viewpoint, many analysts are suggesting that investors put fears aside and allow the market to right itself, before FOMO panic sets in. Some believe that the MA crossovers are lagging indicators in the fast-paced markets of cryptocurrencies. But these reservations don’t stop BTC from being on the defensive. This is because it has consistently failed to break the bearish trend that’s been firmly in place for the last 3.5 months.
Long term MA trends offer little in the way of hope. This suggests that the oncoming bear cross is likely to encourage bearish views and the market will continue to fall. However, during the last few days, the market seems to be hovering around $8,600. This has led investors to wonder if there’s not a rally in the near future.
Within the last year, the bear crosses were almost always quickly followed by a rally. In April 2019, the bear cross was followed by consolidation up to $450 and a rally to $680 by early June. October’s bear cross brought a rally of $400 in just a few short weeks. Making these crossovers less likely to attract much attention from analysts and traders.
Currently trading at $8,639, bitcoin and its bearish downturn are offering potential traders a cut of the action. According to Square Cash App data, first-time bitcoin buyers have almost doubled during the third quarter of 2019. Despite low-profit margins. Giving some traders the hope of reversal. One seasoned crypto trader estimates a 70% chance of bullish reversal on the horizon. Estimated by bitcoin hitting it’s 61.8% Fibonacci golden retrace.
Where This Leaves Traders
Few experts suggest that sellers will increase their marginal positions as the week travels onward. However, the prophesized bear market isn’t quite aggressive enough to suggest a solid indication of further fall. So marginal buyers have to wait and see just what the market will have in store for them in the coming weeks.