. . World News – UK – 35% chance Bitcoin is in bearish reversal, analyst explains why – Bitcoinist. com

Bitcoin is trying to hit its all-time high of almost 20. $ 000 retest as Donald Trump authorizes his administration to work with President-elect Joe Biden’s transition team.

An interrupted bitcoin price rally has increased the likelihood of a sharp decline, according to independent analyst Vince Prince.

Bitcoin has been stable below 19 for the past few days. $ 000, with each visit at this level triggering relatively large pullbacks on which crypto trends will depend in the short term. . .

Dash has built a reputation for being one of the longest-surviving crypto assets on the market. The project has developed special standards so that users can enjoy the best. . .

A rally in the Bitcoin market has prompted traders to shift their capital out of the booming decentralized financial sector. Almost all DeFi tokens have fallen since Wednesday. . .

While Bitcoin at the resistance of 9. $ 800 was rejected, Ethereum continued to push higher. The second largest cryptocurrency is up around 4% from the lows of the past 24 hours. . .

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Yashu Gola
| 24. November 2020 | 06:29

Yashu Gola
| 24. November 2020 | 06:29

An interrupted bitcoin price rally has increased the likelihood of a sharp decline, according to independent analyst Vince Prince.

The TradingView. com contributor said Monday that there is a 35 percent chance Bitcoin price will fall in upcoming sessions, citing a textbook technical indicator that provides for bearish reversal patterns.

The pattern known as the head and shoulders is shown during an asset’s uptrend. Traders will confirm this when they see three peaks forming on a support-like baseline. The middle peak is higher than the other two, so it looks like a head hanging on two shoulders on either side.

The H&S patterns usually end in a breakout below the baseline, with a downside target as much as the maximum height of the structure below. Mr. Prince discovered that Bitcoin formed a similar technical setup, with the left shoulder and left head fully confirmed and the right shoulder partially established.

« Bitcoin is already trading in overbought zones, » he added. “This doesn’t mean it can’t move higher and form new heights. However, the bearish perspective should by no means be underestimated. Bitcoin moves in zones where a quick reversal and change of direction is easier to set. ”

If valid, the H&S pattern risked Bitcoin around 1. Bring $ 600 below its baseline (the height between the peak and the support). . The yellow area in the table above shows the ideal H&S breakout target area.

Mr. . Prince’s bearish outlook on Bitcoin was involuntarily supported by the cryptocurrency futures market. According to Glassnode, the average “funding rate” on all Bitcoin exchanges rose to levels suggesting that traders may have been overfunded through perpetual contracts.

Measured every eight hours, the funding rate shows the cost of holding a bullish contract;. H. . e. , a long position. A positive value indicates that bulls are paying bears. This increases the value of the perpetual contract on bitcoin’s spot rate. A very high funding rate therefore signals that leverage in favor of bulls is overly biased. It’s an overbought condition.

Futures funding rates = very overbought, very overheated. RSI in lower time periods = oversold, especially 4 hours.

A withdrawal from the spot market can lead to massive long liquidations, which can lead to more price reductions and higher volatility.

But Mr.. . Prince also believes in a limited corrective downtrend. He noted that Bitcoin could find support at the H&S section to jump higher again – and invalidate the entire trend reversal theory as a whole.

« With Bitcoin still having solid supports [near] the 65 EMA and blue horizontal support, the bullish breakout has a greater 65% probability, » said Mr. . Vince added.

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Bitcoin is trying to hit its all-time high of almost 20. $ 000 retest as Donald Trump authorizes his administration to work with President-elect Joe Biden’s transition team.

Bitcoin has been stable below 19 for the past few days. $ 000, with each visit at this level triggering relatively large pullbacks on which crypto trends will depend in the short term. . .

Bitcoin has been on a rift in the past few weeks. The price saw 2017-style gains when buyers took charge. After reaching highs of 19. 000 US dollars, the cryptocurrency had gained momentum. . .

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Bitcoin, Market Sentiment, Cryptocurrency Exchange