Bitcoin [BTC] Price Drops to $6785 – Reversal Signals Light up, but Bears Still Strong

Published November 23, 2019 | Updated November 23, 2019
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Bitcoin [BTC] Price Drops to $6785 – Reversal Signals Light up, but Bears Still Strong

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Bitcoin’s [BTC] volatility took strong bearish steps as price broke down below $7,000. The carnage stretched over two days with an $800 drop in price.

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Again, Chain was held responsible for acting as the catalyst. China’s crackdown on illegal cryptocurrency exchanges has begun a sell-off characterized by a ‘falling-knife,’ one of the worst bear patterns.

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BTC/USD 4-Hour Chart on Bitstamp (TradingView)

Nevertheless, the price made a swift recovery from the bottom as buyers stepped it. Leading analysts like Tone Vays and Sawcuhteez indicated a bottom formation according to sequential analysis. Sawcruhteez tweeted,

4h red 9 + dragonfly doji makes this look like a good opportunity to take some profit on shorts. $BTC

A ‘dragonfly Doji’ suggests a reversal of the bears and the beginning of a bull action. However, Bitcoin needs to hold above the Fibonacci retracement levels around $7270 to initiate a bullish action.

The price of Bitcoin [BTC] at 3: 15 hours UTC on 23rd November 2019 is $7276.

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The order book of the derivates can also confirm the possible reversal. The total long interest across top exchanges like BitMEX, Bitfinex, and Binance is 59%. However, the funding and premium rate is negative at BitMEX.

Bitcoin [BTC] Derivatives Long/Short Percentages (Source)
On Okex, while the top 100 traders are holding a long position with 55% strength, the negative basis points indicate bulls might still be scared.

Are Bears Still Looming?

Leading chart expert Peter Brandt seems to categorize the historic surge as a ‘dead-cat bounce.’ The dead cat in the context being Bitcoin. It seems to have opened up a lot of shorting opportunities.

BTC/USD 1-Day Chart Analysis (Source: Tweet)

Moreover, what looks like the end of shorting opportunities could be the beginning, according to Brandt. The bearish trendline has actively played out, exhibiting a dead cat bounce. Hence, BTC price could likely break down below the trend as well. The support from the trendline is ranging from $6800-$6100 for the rest of the year.

Do you think bulls will start to make a move or disappear completely? Please share your views with us. 

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
Nivesh Rustgi 1181 Articles
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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