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The prospect of a deeper drop in bitcoin prices has increased, price-volume analysis indicates. The world’s most valuable cryptocurrency, which had been trading sideways since September 22, fell sharply to a three-week low of $6,220 on Bitfinex yesterday, confirming a range breakdown. The technical indicators on the daily chart also turned bearish, validating a negative moving average crossover on the long duration charts. Essentially, bears regained control 24 hours ago, opening the doors to the key support of $6,000. Furthermore, the bearish case is now looking stronger than it did 24 hours ago due to these three factors: 1) BTC breached key support As seen in the chart above, BTC witnessed a Bollinger band breakdown yesterday and also penetrated the support of the trendline drawn between the June 24 low and Aug. 11 low. This will likely embolden the bears, as the trendline had repeatedly put the brakes on any sell-off in the first half of September. Further, the trendline i...

Bitcoin saw a low-volume bullish breakout Monday, but the long-awaited move is sending mixed signals to investors The leading cryptocurrency cleared the trendline sloping downwards from the July 25 high and Sept. 5 high around midday yesterday, adding credence to the argument put forward by many, including billionaire investor Novogratz , that the market has carved out a long-term bottom around $6,000. However, so far, the bullish trend change hasn’t significantly revved up investor interest. This is evident from the fact that the total trading volume rose by a meager 15 percent yesterday, according to CoinMarketCap. More importantly, 24-hour trading volume is holding below $4 billion (near the yearly low so far). Further, the follow-through has not been impressive either. By now, one would have expected BTC to be trading above last week’s high of $6,741. After all, the breakout occurred after a prolonged period of low volatility action. Instead, it is trading at $6,650 at press ...

So you’ve pivoted to the upper echelons of your newfound expertise and are looking to increase your skill set to enable a greater understanding of the markets. When combined with other technical tools, pivot points are valued among day traders for their ability to analyze price movement of an asset as well as defining the support and resistance levels during a short-term trading session. What are pivot points? Pivot points were first developed by floor traders to predict support and resistance levels in the equity and commodities markets. They can also help to determine overall market trends, whereby if prices break upward past a certain area they can be considered bullish or, conversely, bearish if they pass below the same region. The most common way to calculate a pivot point is the “five-point system.” This comprises an average of the numerical high, low and close of the previous trading period to plot a course for five levels: two sets of supports, two sets of resistance l...

Bitcoin price is vulnerable to modest slippage as the persistent failure to beat a key moving average hurdle may embolden the bears. The leading cryptocurrency has been in a narrow sideways drift in recent days. More importantly, the sideways moving 50-day exponential moving average (EMA) has proved a tough nut to crack since Saturday. BTC’s inability to cross the 50-day EMA for four straight trading days indicates that the bullish move from the Sept. 19 low of $6,100 has likely lost momentum. As a result, the door is open for the bears to make their presence felt in the next 24 hours by pushing prices down to $6,300. As of writing, BTC is changing hands at $6,580 on Bitfinex, having faced rejection at the 50-day EMA hurdle of $6,649 earlier today. Daily chart As seen on the daily chart, the 50-day EMA is capping the upside in BTC. It is worth noting that BTC is trading below all three major moving averages – 50-day, 100-day, and 200-day EMA – and that could be considered a bea...

Bitcoin (BTC) seems to have built a base around a key moving average in the last four months, although, so far, it has not been able to produce a definitive bullish breakout. Throughout 2018, the leading cryptocurrency has set lower price highs, indicating the path of least resistance is to the downside. Despite the bearish setup, the 21-month exponential moving average (EMA) has served as a strong floor since June. More importantly, the failure to beat the EMA support for four straight months indicates that the sell-off from the record high of $20,000 reached in December has likely run its course. So, it seems safe to say that the stage has been set for the cryptocurrency to jump above the recent lower price high of $7,429 hit a month ago and confirm a bearish-to-bullish trend change. Even so, the bulls have been reluctant to push prices north of $6,800 in the last two weeks. Still, since BTC tends to perform well in the last three months of the calendar year, that may be abou...

Bitcoin (BTC) is on the defensive, having breached crucial support on Monday and could suffer a deeper drop, courtesy of a bearish crossover between key moving averages. As of writing, BTC is changing hands at $6,420 on Bitfinex, representing a 3 percent drop on a 24-hour basis. The bullish break above $6,600 witnessed on Friday had set the tone for a move toward the psychological hurdle of $7,000. However, the rally in alternative cryptocurrencies fizzled out over the weekend. As a result, while BTC managed to hit 17-day highs above $6,800 on Saturday, it fell back below $6,600 yesterday, neutralizing the bullish outlook. Further, the pullback from the weekend high of $6,841 to today’s low of $6,370 validates the bearish view put forward by the negative moving average crossover on the monthly chart. Hence, BTC risks falling to the major support at $6,000 in the next few days. Daily chart Over on the daily chart, BTC has found acceptance below the double bottom neckline of $6,...

Bitcoin has pulled back from 17-days highs clocked over the weekend and risks losing bullish bias if prices close below $6,600, technical studies indicate. A break below that level will make it far harder for the bulls to force a major upside breakout above the crucial resistance at $6,970. However, if prices hold above $6,600 in the next 24 hours, that target may be achievable. The leading cryptocurrency was solidly bid on Friday likely due to an increased investor interest in XRP and other alternative cryptocurrencies. Notably, prices flew past $6,600, confirming a double bottom bullish reversal and opening doors to the psychological support of $7,000. However, the altcoin rally fizzled out over the weekend. For instance, XRP, which was reporting a 75 percent gain at $0.77 in the US hours on Friday, fell back to $0.50 just a day later and is currently threatening to drop below that level. Further, Friday’s other big gainers like aurora and monacoin shed a major chunk of t...

Bitcoin’s (BTC) drop to five-day lows on Monday has likely emboldened the bears, technical studies indicate. The leading cryptocurrency traded in a sideways manner over the weekend, neutralizing the immediate bullish outlook. However, the consolidation was expected to end with an upside break, as the short-term moving averages (MAs) turned bullish on Saturday, adding credence to positive relative strength index divergence. Instead, BTC dived out of the trading range in the US session yesterday and fell to a low of $6,203 – the lowest level since Sept. 12 – indicating the corrective rally from the recent lows near $6,100 has likely ended at Friday’s high of $6,600. More importantly, the drop witnessed yesterday signaled a revival of the sell-off from highs above $7,400 seen earlier this month. At press time, BTC is changing hands at $6,250 on Bitfinex – down 3 percent on a 24-hour basis. 4-hour chart The bear flag breakdown seen in the above chart is a bearish continuation pa...

Having eased from eight-day highs, bitcoin (BTC) price could be in for a minor bout of consolidation, before further upside unfolds. The cryptocurrency rose to $6,596 earlier today on Bitfinex – the highest level since Sep. 6 – adding credence to the short-term bullish reversal signaled by the symmetrical triangle breakout earlier this week. However, despite the strengthening bullish case, the corrective rally has stalled. At press time, BTC is changing hands at $6,450, having printed an intraday low of $6,355 a few minutes ago. While the sudden price pullback could force investors to question the sustainability of the corrective rally, the short-term technical charts continue to show that the path of least resistance is on the higher side. Hourly chart BTC’s retreat from the highs near $6,600 is likely associated with the bearish divergence of the relative strength index seen in the hourly chart. Indeed, the RSI has adopted a bearish bias, still, it is premature to call an en...

Bitcoin (BTC) is teasing a decent bullish move, having cleared a crucial resistance a few hours ago. The leading cryptocurrency moved past $6,400 earlier today, singling the bearish exhaustion as indicated by Tuesday’s spinning bottom candle is paving way for a corrective rally. Notably, the positive price action is preceded by a solid defense of the long-term trendline connecting the June low and Aug. 11 low and an upside break of the symmetrical triangle. As a result, the stage looks set for an upside move. However, caution is still the name of the game as the bearish moving averages (MAs) could work as stiff hurdles and complicate the recovery. At press time, BTC is changing hands at $6,450, having clocked a high of $6,490 earlier today, according to Bitfinex data. Hourly chart The symmetrical triangle breakout, as seen in the above chart, indicates a bullish reversal, meaning the sell-off from the recent highs above $7,400 has ended and the bulls have regained control. Fu...

Bitcoin has dropped below $7000 a few minutes before press time, triggering fears of a bull trap. The leading cryptocurrency closed yesterday (as per UTC) above the trendline sloping downwards from the March 5 high and May 5 high, confirming a long-term bearish-to-bullish trend change. However, the follow-through has been disappointing. As of writing, BTC is changing hands at $6,965 on Bitfinex – down 3.5 percent on a 24-hour basis. The negative price action reminds us of a failed long-term bullish breakout of July, although the latest bull reversal looks sustainable, according to technical studies. Daily chart As seen in the above chart, bitcoin’s move above the falling channel hurdle (or falling trendline) on July 24 trapped the bulls on the wrong side of the market. On that fateful day, BTC had crossed the long-term falling trendline hurdle to print a high of $8,507 only to fall back below the psychological support of $6,000 by mid-August. The bull breakout was short-lived,...

New to crypto trading? Read CoinDesk’s full set of guides . Fibonacci retracement. Sounds sophisticated? But what does it do? And does it work? Luckily for traders, Fibonacci retracements are far more than just a nifty word. In fact, it’s the name of a tool used to predict potential support and resistance levels for price action. First, let’s define what this so-called “Fibonacci” is so you have a better idea as to why it is a concept relevant to trading cryptocurrencies. Leonardo of Pisa (A.K.A. Fibonacci) was an 11th-century mathematician responsible for introducing a unique sequence of numbers to the West, now known as the “Fibonacci Sequence.” The Sequence 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377, 610, 987, 1597, 2584… (pattern repeats to infinity) Each number in the sequence is derived from the sum of the preceding two numbers. Clever, right? Not only that, but each number is roughly 1.618 times greater than the number before it. This creates a value ...

The bearish sentiment in the bitcoin (BTC) futures market hit a record low last week, likely indicating the worst of the plunge in the leading cryptocurrency is behind us. The non-commercial futures contracts of Bitcoin futures, traded by large speculators and hedge funds, totaled a net position of -1266 contracts in the week ended Aug. 21 – the lowest on record, according to the data released by the Commodity Futures Trading Commission (CFTC) on Friday. The futures data indicates the speculators are the least bearish on BTC since the futures listing back in December. A negative total represents net short positions (bearish bets) and a positive tally indicates net long positions (bullish bets). The sharp drop in the bearish sentiment, as represented by the steady decline in the net short positions from the high of -1945 seen ten weeks ago to -1266, adds credence to the signs of bearish exhaustion indicated by BTC’s defense of $6,000 since mid-June. At press time, BTC is changin...

Maybe you’re the type of trader that keeps metrics to make important life decisions? If you fit the description, you may want to add  moving averages to your aresenal to discover just how much they can improve your trading strategies. Not sure where to begin? Moving averages are a useful tool for tracking the direction and strength of a trend by capturing specific price data points over a specified period of time (as defined by the time frame you are looking at) to constantly update the average price as it moves along the chart. Indeed, the position of the moving averages depends upon the nature of the asset you are looking at. Generally, when prices are below a particular moving average, it signals to traders that the price has lost momentum and the trend has turned bearish (meaning price and sentiment are trending down). Conversely, if prices are above a moving average it can generally be considered bullish, as long as prices remain on top and have the backing from other i...

Crypto markets spiked today, August 21, seeing notable gains amongst the top 100 coins in under an hour, as data from Coin360 shows. Market visualization from Coin360 Total market capitalization of all cryptocurrencies shot up over $12 million in just over an hour to peak at $222.8 million, before dropping slightly to $291.7 million by press time. 1-day chart of the total market capitalization of all cryptocurrencies from CoinMarketCap Bitcoin (BTC) had been trading sideways today around $6,400-$6,500 before seeing a sharp 5 percent spike in the space of just 45 minutes, peaking around $6,790. The leading cryptocurrency has since dropped slightly to trade around $6,715 at press time, stil up about 6.2 percent on the day. Bitcoin’s 1-day price chart. Source: Cointelegraph Bitcoin Price Index Bitcoin is also boasting almost 6 percent growth on the week, while on the month the coin is down almost 10 percent, according to Cointelegraph’s Bitcoin Price Index . All except o...

New to crypto trading? Read CoinDesk’s full set of guides . Are you a crypto trader struggling to find a footing in a volatile crypto market? If yes, then the first thing you need to master is the art of identifying support and resistance levels. Imagine bouncing a ball inside your house. There are two barriers that will limit the flight and fall of the ball – your floor and ceiling. In trading, there are similar barriers that limit the movement of price action known as support and resistance. Such barriers in trading can have long-lasting effects on an asset, since price action rarely forgets its past. If traders regard a certain price level as a great entry or exit point, it will likely continue to act as a barrier for prices until all of their respective needs are satisfied. Support For example, buyers will generally continue to buy at a specific price, given the asset is perceived as undervalued, until all of their demand is fully absorbed by the market. So, if buyers enga...

Ethereum classic (ETC) is reporting double-digit gains on the heels of an anticipated listing on the Coinbase exchange as of 17:00 PST (00:00 UTC) on Thursday. At time of writing, ETC is trading across exchanges at an average price of $14.04  – a 15.72 percent gain in the last 24 hours – and is currently the biggest gainer among the top 15 cryptocurrencies by market capitalization, according to CoinMarketCap data. This is not the first time that ETC is cheering its association with Coinbase – it   rose sharply earlier this month to a high of $21.25 as traders welcomed its listing on Coinbase Pro, the firm’s platform aimed at more experienced traders. However, things took turn for the worse in subsequent days courtesy of a broader market sell-off and  ETC fell to $10.25 on Aug. 14 – down 50 percent from its Aug. 7 high, as per Bitfinex. Although the markets generally are now showing signs of recovery, today’s above average bounce surely marks revived investor inte...

At a time when it’s hard to find a correlation between cryptocurrencies and just about any other asset class, it may come as a surprise that a fairly public stock would be tracking bitcoin. However, that’s exactly what appears to be the case with t he share price of Overstock.com (OSTK) and the BTC/USD exchange rate. What’s more, it’s not exactly a short-term coincidence at play. Ever since 2014, the technical price charts between the two assets have developed a striking similarity, one that not only seems to grow stronger as times goes on, but that saw its latest example late last week amidst crypto market turmoil. At first this may seem like comparing apples and oranges, but Overstock was actually the first major retailer to accept bitcoin as a form of payment in 2014. As Overstock’s operations have expanded (the company now has a dedicated blockchain subsidiary, tZero, which hopes to publicly trade blockchain-based traditional assets in 2018), it seems investors in the U.S. ...