Bitcoin Climbs 5%, Why $18.2K Holds The Key For More Upsides

Bitcoin price started a fresh increase from the $16,200 support zone against the US Dollar. BTC is up 5% and it is trading above $17,500, but facing a major resistance at $18k and $18.2k.

  • Bitcoin started a fresh upward move above the $17,000 and $17,200 levels.
  • The price is now trading nicely above the $17,500 resistance and the 100 simple moving average (4-hours).
  • There was a break above a major contracting triangle with resistance near $17,200 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair could revisit the $18,200 resistance, where the bears might put a strong fight.

Bitcoin Price is Rising Steadily

This past week, bitcoin saw a sharp downside correction below $18,000 and $17,200 against the US Dollar. The BTC/USD pair even broke the $16,800 support and the 100 simple moving average (4-hours).

It traded as low as $16,219 before forming a support base. A fresh increase was initiated above the $16,500 and $16,800 resistance levels. Bitcoin price cleared the $17,400 resistance and 100 simple moving average (4-hours) to move into a positive zone.

There was also a break above a major contracting triangle with resistance near $17,200 on the 4-hours chart of the BTC/USD pair. The pair is now testing the 50% Fib retracement level of the downward move from the $19,500 swing high to $16,220 swing low.

Bitcoin Price

Source: BTCUSD on TradingView.com

A clear break above the $17,850 and $18,000 levels might lead the price towards the key $18,250 resistance zone. It is close to the 61.8% Fib retracement level of the downward move from the $19,500 swing high to $16,220 swing low.

A successful break above the $18,250 and $18,400 levels is needed for a fresh rise towards the $19,000 and $19,500 levels in the coming sessions.

Another Drop in BTC?

If bitcoin fails to clear the $18,000 and $18,250 resistance levels, it could start a fresh decline. An initial support is near the $17,500 level or the 100 simple moving average (4-hours).

The first major support sits at $17,400 levels. A downside break below the $17,400 level could lead the price towards the main $16,800 support level. Any more losses might call for a new low below $16,200.

Technical indicators

4 hours MACD – The MACD for BTC/USD is slowly gaining momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is rising and it is above the 50 level.

Major Support Level – $17,400

Major Resistance Level – $18,250

Guggenheim Partners prepares to dip investment fund’s toes into Bitcoin

What can I do to prevent this in the future?

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High priced $32K Bitcoin options show some pro traders expect more upside

What can I do to prevent this in the future?

If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware.

If you are at an office or shared network, you can ask the network administrator to run a scan across the network looking for misconfigured or infected devices.

Analyst Who Predicted Bitcoin’s 2018 Lows Says Another Drop Is Likely

Bitcoin Price

Analyst Who Predicted Bitcoin’s 2018 Lows Says Another Drop Is Likely


  • Bitcoin has undergone a strong drop since the highs of $19,500 seen last week
  • A historically accurate analyst says that further losses are likely for the cryptocurrency
  • The analyst shared a chart showing that Bitcoin is likely in the midst of trading in a dead cat bounce prior to further losses
  • He cited the Elliot Wave form of technical analysis, which predicts that markets move in predictable waves.

Bitcoin Could Drop Toward $15,000

Bitcoin has undergone a strong drop since the highs of $19,500 seen last week. Even after a strong recovery from the lows, the leading cryptocurrency trades for $17,600, far from those highs.

Analysts are mixed over what this correction means for the Bitcoin bull market: some think that the drop was a necessary correction before a stronger move higher. Others think that the drop is the start of a bigger correction that will likely end in the coin falling toward the $12,000-14,000 technical region.

A historically accurate analyst is currently leaning toward the latter option.

The trader recently shared a chart showing that Bitcoin is likely in the midst of trading in a dead cat bounce prior to further losses. This next drop, the analyst suggests, could bring the cryptocurrency toward the $15,000 region.

The chart below was shared along with this assertion. The chart shows Bitcoin’s recent price action, along with the assertion that it may be trading in an Elliot Wave pattern that may take it to $15,000:

“you love to see it, looking for another pop higher into 18k before opening some shorts. to me this is a clear abc up after a 5 wave decline, and complacency looks to be kicking in.”

The trader that shared this chart is the same one that in the middle of 2018 predicted that Bitcoin would fall as low as $3,200. He was proven almost exactly correct when the coin bottomed on top exchanges at $3,150 just months later.

Image

Chart of BTC's price action over the past week with an Elliot Wave analysis by historically accurate analyst Benjamin (@SmartContracter on Twitter)
Source: BTCUSD from TradingView.com

Not the Only One That Thinks So

This analyst is far from the only one expecting a further drop.

Bob Loukas, a crypto cycle analyst, noted that the cryptocurrency regularly fell by 30% last market cycle, prior to moving to new highs:

“Most have a short memory. Remember in Jan 2017 just shy of #Bitcoin ATH’s, boom 34% decline. The 2 months later a sharp rally, new ATH’s, and double boom 34% decline. Never a one way street.”

Bitcoin has only dropped by around 15% from its highs. A full-blown 30% correction would mean that it drops to the $14,000 region.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Analyst Who Predicted Bitcoin's 2018 Lows Says Another Drop Is Likely

CME Group Outpaces Competition Becoming the World’s Largest Bitcoin Futures Market

CME Group Outpaces Competition Becoming the World’s Largest Bitcoin Futures Market

Financial derivatives products for bitcoin have grown massively during the last few months. On Friday evening (EST), Arcane Research explained that the Chicago Mercantile Exchange has surpassed Okex as the largest bitcoin futures provider. The regulated derivatives market at CME has doubled month after month as incoming interest has created more demand for CME’s bitcoin futures.

  • The Chicago Mercantile Exchange (CME Group) is the world’s largest financial derivatives exchange that trades in various asset classes. The exchange first launched its bitcoin futures products back in December 2017, and since then the demand for crypto derivatives has skyrocketed.
  • On October 14, 2020, the investment manager Wilshire Phoenix published a study which says that “CME Bitcoin Futures contribute more to price discovery than its related spot markets.”
  • “CME Bitcoin Futures have grown to become significant, this is not only demonstrated through trading volume and open interest, but also by influence on spot price formation,” the investment manager’s research called “Efficient Price Discovery in the Bitcoin Markets” said.
  • On October 24, 2020, news.Bitcoin.com reported on how CME Group became the second-largest derivatives market for bitcoin futures in terms of open interest. Two key events helped push CME’s futures above the competitors; the crypto support announcement from Paypal, and the legal troubles surrounding the derivatives exchange Bitmex.

  • This week, CME Group has surpassed Okex and is the largest bitcoin futures provider at the time of publication. The exchange has captured over $1.16 billion in open interest toward its bitcoin futures market product. This is just a hair above the exchange Okex, which commands $1.07 billion in bitcoin futures open interest.
  • The research and analysis firm Arcane Research tweeted about the latest CME Group milestone after obtaining data from Skew.com. “According to data from Skew.com, CME is now the largest futures market for bitcoin. Institutional investors are here,” Arcane tweeted on November 27.

  • Other bitcoin derivatives exchanges that are also seeing notable open interest spikes include Binance, Huobi, and Bybit. In fact, according to Arcane Research’s recent tweet, Bybit and Bitmex share the same amount of open interest.
  • The bitcoin derivatives exchange Bakkt, which deals in physically-settled bitcoin futures is barely a blip on the radar compared to competitors.

What do you think about CME outpacing the competitors like Okex when it comes to bitcoin futures open interest? Let us know what you think about this subject in the comments section below.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, Arcane Research, Twitter,

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Ethereum Likely Set Its Local Low for the Year as Buyers Defend $500

Ethereum has been flashing signs of immense strength today, with the cryptocurrency surging up towards $550 as bulls try to erase the recent losses that came about due to the recent market-wide selloff.

This comes as Bitcoin also shows some signs of strength, with the benchmark cryptocurrency navigating towards $18,000 following its recent decline that sent it down to lows of $16,400.

Bitcoin is firmly leading Ethereum and the rest of the market. The potent reaction that both assets have seen after tapping their local lows does seem to be a bull-favoring sign.

One analyst is now noting that Ethereum is likely to see significantly further upside in the near-term, with its strength showing no signs of slowing down as bulls move to regain control of its trend.

He believes that $500 will prove to be a long-term local bottom for the crypto and that it will only see upside from here heading into the end of the year.

It is also possible that it will enter an accumulation phase between these lows and its current price level, which will bolster any uptrend in early-2021.

Ethereum Shows Signs of Strength as Buyers Take Aim at $600 

At the time of writing, Ethereum is trading up just under 5% at its current price of $543. This marks a notable upswing from its recent lows of $490 set at the bottom of the recent selloff.

The ardent defense of $500 by bulls indicates that this is a strong support level that may continue bolstering its price action for the weeks to come.

So long as it consolidates above $500 and confirms this as a strong support level, there’s a strong possibility that it will see further upside.

Analyst: ETH Likely to Rally Higher Throughout Rest of 2020

While speaking about Ethereum’s potential outlook, one trader explained that he expects it to see some serious upside in the weeks leading up to the end of the year.

He further added that he expects $500 to prove to be a long-term local low for the cryptocurrency that helps spark its next sustained uptrend.

“ETH / USD: Weekly chart looking excellent right now, while $650 resistance was rejected pretty harshly, now strong support is being show at $500 buyers defending aggressively… LTF expecting accumulation at $500 and hopefully this is a local low for the rest of the year.”

Ethereum

Image Courtesy of Cactus. Source: ETHUSD on TradingView.

Ethereum’s near-term price action will likely depend largely on Bitcoin, which does seem to favor bulls at the moment, with the benchmark cryptocurrency now pushing up towards $18,000.

Featured image from Unsplash.
Charts from TradingView.

Bitcoin Could Be Mirroring This Extremely Bullish Gold Fractal from the 1970s

Bitcoin

Bitcoin Could Be Mirroring This Extremely Bullish Gold Fractal from the 1970s


  • Bitcoin is currently caught within a strong upswing following its recent selloff
  • Bulls are pushing the crypto towards $18,000 as they move to erase its recent losses
  • Where it trends next will depend largely on how sustainable this ongoing move higher is
  • One investor is now noting that a gold fractal from the 1970s seems to indicate that this selloff could be followed by a powerful push higher in the days and weeks ahead

Bitcoin and the entire cryptocurrency market are currently caught within a strong uptrend that has come about just a day after the cryptocurrency witnessed a massive inflow of selling pressure that caused it to erase a good portion of its recent gains.

Where it trends next will likely depend largely on whether or not buyers can push it back above $18,000. Reclaiming this level could provide a strong new support base to grow upon.

It could confirm a “V-shaped” recovery from its recent lows, potentially allowing it to see a strong upswing that pushes it beyond its previous all-time highs in the upper-$19,000 region.

It could also confirm that a gold fractal from the 1970s is in play, allowing it to see some significant upside.

Bitcoin Shows Signs of Strength as Bulls Target $18,000 

At the time of writing, Bitcoin is trading up just over 3% at its current price of $17,700. This marks a serious upswing from its recent lows of $16,400.

These lows were set at the bottom of the recent market-wide selloff, which came about shortly after BTC faced a rejection around its previous all-time highs of $19,500.

The selling pressure seen here drove it significantly lower and could indicate that further downside is imminent.

This move was also perpetuated by a surge in regulatory fears due to recent comments from U.S. Treasury Secretary Steve Mnuchin.

Prominent Investor: BTC’s Latest Dip Could Confirm Bullish 1970s Gold Fractal 

Su Zhu, a prominent cryptocurrency investor and the CEO of Three Arrows Capital, explained in a recent tweet that the ongoing Bitcoin dip could be bullish because it puts in play a gold fractal from the 1970s that suggests immense upside is imminent.

“Any continued dump in BTC would be extremely bullish as it would reveal we are following the gold fractal from the 1970s, as per below by Paul Tudor Jones–the legendary macro investor who successfully used fractals to predict the 1980s stock market supercycle.”

Bitcoin

Bitcoin’s upcoming weekly candle close should provide some insights into where it is trending in the mid-term.

A close above $18,000 could put the trend back into bulls’ control for the week ahead.

Featured image from Unsplash.
Pricing data from TradingView.