Bitcoin Price Sinks to New Yearly Low as Sell-Off Batters Crypto Markets




The crypto market’s extended stable action took its last breath on Wednesday as the bitcoin price dipped to a new yearly low at 5280-fiat.

The BTC/USD index fell more than 12 percent ahead of the US trading session, now trading at 5439-fiat on Coinbase. The pair was trading comfortably inside a narrow trading range since September, leading many to believe that it had established a bottom around 6000-fiat. The latest selling action brought BTC/USD to its weakest mark since October 2017.

The bitcoin flash-crash cannot be fit inside the box of technicalities and must have a strong fundamental reason behind it. This kind of price action generally appears when exchanges trade unrealistically, or some kind of regulatory action takes place. It will take a while for the market to understand the real catalysts behind the ongoing breakdown action.

Meanwhile, the US dollar continues to stay near its 16-month peak level. The greenback is benefiting from the speculation of an interest rate hike in December. Concerns over Italy‘s budget and ongoing Brexit talks are also injecting positive fundamentals to the dollar’s bullish bias.

BTC/USD Technical Analysis

Bitcoin Price Crashes to New Yearly Low | SOURCE: TradingView.com

In the previous analysis, BTC/USD was trending lower inside a falling wedge formation, indicating a near-term breakout action according to traditional technical indications. But the flash-crash has changed the dynamics upside down, now bringing the pair inside a large falling wedge formation — as can be seen in the chart above. According to this update, BTC/USD has the potential to fall as low as 4500-fiat at the end of this bear cycle, before it attempts a brief rebound towards the upper trendline of the said wedge formation.

The RSI and Stoch on daily charts have dipped or are going to fall inside their respective oversold sentiment areas. The price continues to trade lower than it’s 100 and 200-period simple moving averages. Overall, its the most extreme bearish bias the market has seen in the past three months — most because $6,000 was supposed to hold the fort against bears.

BTC/USD Intraday Analysis

BTC/USD 15M CHART | SOURCE: TRADINGVIEW.COM, COINBASE

We were able to exit our short position on a small profit but ended up wearing an equally small loss after our stops against the long trades got executed. Now, according to our intraday strategy, we are in the middle of nowhere, and the levels we have in hand do not hold any new historical significance. Typically, we should not trade in this choppy market. And probably, we will keep ourselves out of it. But to those who want to trade the market anyway, feel free to use what could have been our strategy.

That said, the BTC/USD pair has established a new yearly low, which serves us as a decent interim support level. To the upside, 5633-fiat is looking like a proper interim resistance level. We expect the pair would attempt a pullback from support to clear a long position scenario towards 5633-fiat. If one wants to go long amidst strong bearish bias, he or she should make sure to keep their stop losses just 2-pips below the entry point.

A breakdown action looks possible at this moment. That said, a break below support should keep traders away from the market. We don’t know how far this downtrend can go, so better to be safe than sorry.

In case BTC/USD breaks above the 5633-resistance level, then a long position towards 5712-fiat looks achievable. Nevertheless, maintaining a stop loss order just 3-pips below the entry level would minimize losses should the bearish bias extend.

Trade safely!

Featured Image from Shutterstock. Charts from TradingView.

Follow us on Telegram or subscribe to our newsletter here.
Who is Buying Bitcoin? Take the survey here and help us with our study.

Advertisement




Author: Yashu Gola

Source link

Related posts

18 Thoughts to “Bitcoin Price Sinks to New Yearly Low as Sell-Off Batters Crypto Markets”

  1. gamefly free trial

    You are so interesting! I do not suppose I’ve truly read through anything like that before.

    So good to discover somebody with a few unique
    thoughts on this subject. Seriously.. thanks for starting this up.
    This website is something that’s needed on the internet, someone with a bit of originality!

  2. mojang minecraft download

    It’s remarkable to visit this site and reading the views of
    all mates about this piece of writing, while I am also keen of getting familiarity.

  3. minecraft download

    Simply desire to say your article is as amazing.
    The clarity in your post is simply cool and i could assume you’re an expert on this subject.
    Well with your permission let me to grab your feed to keep up to date with forthcoming post.
    Thanks a million and please carry on the gratifying work.

  4. g

    Excellent web site you’ve got here.. It’s hard to find high-quality writing like yours nowadays.
    I seriously appreciate people like you! Take care!!

  5. g

    Excellent blog here! Also your web site loads up fast!

    What host are you using? Can I get your affiliate link to
    your host? I wish my site loaded up as quickly as yours lol

  6. Tifany Ballagh

    I am definitely bookmarking this website and sharing it with my acquaintances. You will be getting plenty of visitors to your website from me!

  7. Jefferson Toye

    When visiting blogs, i usually discover a very good content like yours

  8. minecraft for free

    Hey just wanted to give you a quick heads up. The words
    in your post seem to be running off the screen in Ie.
    I’m not sure if this is a format issue or
    something to do with internet browser compatibility but I thought I’d post to let
    you know. The style and design look great though! Hope you get the issue solved soon. Kudos

  9. buy marijuana strains online

    … [Trackback]

    […] Find More Information here on that Topic: tradingbtc.com/2018/11/14/bitcoin-price-sinks-to-new-yearly-low-as-sell-off-batters-crypto-markets/ […]

  10. www.squeeqee.co.uk/carpet-cleaning-hemel-hempstead

    … [Trackback]

    […] Read More on that Topic: tradingbtc.com/2018/11/14/bitcoin-price-sinks-to-new-yearly-low-as-sell-off-batters-crypto-markets/ […]

  11. DevOps Solutions

    … [Trackback]

    […] Find More on to that Topic: tradingbtc.com/2018/11/14/bitcoin-price-sinks-to-new-yearly-low-as-sell-off-batters-crypto-markets/ […]

  12. mellow mushroom 4/20 deals

    … [Trackback]

    […] Information to that Topic: tradingbtc.com/2018/11/14/bitcoin-price-sinks-to-new-yearly-low-as-sell-off-batters-crypto-markets/ […]

  13. hho gas generator for sale/47% Fuel-Saving Plug-N-Play HHO Kit HHO generator Hydrogen kits for cars trucks

    … [Trackback]

    […] Read More Information here to that Topic: tradingbtc.com/2018/11/14/bitcoin-price-sinks-to-new-yearly-low-as-sell-off-batters-crypto-markets/ […]

  14. psychedelic mushroom chocolate,

    … [Trackback]

    […] Read More Info here to that Topic: tradingbtc.com/2018/11/14/bitcoin-price-sinks-to-new-yearly-low-as-sell-off-batters-crypto-markets/ […]

  15. wow slot

    … [Trackback]

    […] Find More Information here on that Topic: tradingbtc.com/2018/11/14/bitcoin-price-sinks-to-new-yearly-low-as-sell-off-batters-crypto-markets/ […]

  16. cvv shop ru

    … [Trackback]

    […] Read More Information here on that Topic: tradingbtc.com/2018/11/14/bitcoin-price-sinks-to-new-yearly-low-as-sell-off-batters-crypto-markets/ […]

  17. Study in Africa

    … [Trackback]

    […] Read More on that Topic: tradingbtc.com/2018/11/14/bitcoin-price-sinks-to-new-yearly-low-as-sell-off-batters-crypto-markets/ […]

  18. sbobet

    … [Trackback]

    […] Info on that Topic: tradingbtc.com/2018/11/14/bitcoin-price-sinks-to-new-yearly-low-as-sell-off-batters-crypto-markets/ […]

Leave a Comment