Bitcoin [BTC] price seems to have found the mid-range for traders as bulls and bears play tug of war. BTC is currently ranging between $7700 and $7400. While $7500 forms a strong level of psychological support as well, the market set-up suggests volatility.
Bitcoin’s [BTC] price broke above another bullish set-up achieving 50% of the target. The upside to the bull flag is potentially above $8000. However, in the following hours, the short orders retested the neckline to the downside.
Moreover, the extension of the flag from the post is starting to invalidate the bullish scenario to a bearish descending flag with targets around $7150. Nevertheless, the break above head and shoulders pattern is still intact with a target north of $8000.
Furthermore, on the four-hour chart, the price is back to testing the flag formation. The resistance and support levels are at $7650 and $7450.
The price of Bitcoin [BTC] at 3: 45 hours UTC on 29th November 2019 is $7503.
On longer timescales, the close of this week and month towards the weekend will be instrumental in establishing the trend for December. According to crypto chart analyst, Don Alt,
$BTC 4 weeks of selling followed by 1 week of bounce isn’t necessarily as bullish as the small timeframes make it out to be. For reference, this green candle “only” reclaimed 50% of the previous one. I‘I personally not looking to rush into a long position just yet.
Hence, analysts and traders seem skeptic about a bullish move ahead. Moreover, market sentiments usually shift drastically with Bitcoin due to its extreme volatility.
As mentioned earlier on CoinGape, leading crypto and financial analyst, Mati Greenspan, notes that the 53% pullback from $14,000 is quite consistent with the previous bull markets.
However, previous pullbacks in a bull market were primarily in the range between 40-50%. While 6,800 the low of this trend is likely to hold for bullish continuation, an invalidation could lead the markets into strong bearish territory.
Do you think the bulls are stronger than the bears at the moment? Please share your views with us.
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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