Since topping at $10,500 last week, Bitcoin (BTC) has been in a relative state of calm, trading within a tight range between $9,000 and $9,500. Despite this consolidation above the 200-day moving average, which many analysts would call more bullish than bearish, some fear that the crypto markets charts are flashing warning signs. They claim that a decline from here is likely.<\/p>\n
An analyst going by James recently drew attention to an array of reasons why it may be logical to be bearish on Bitcoin. He noted that BTCs three-day Relative Strength Index remains in bear market territory, while the recent move higher was a textbook signal for a trend continuation. He added that there also exists two hidden bearish divergences on the one-day chart, implying a further breakdown.<\/p>\n
Dave the Wave has corroborated this sentiment. He noted that the Histogram has begun to contract on the daily, while the one-day Moving Average Convergence Divergence (MACD) has started to roll over. This implies that the medium-term trend is down.<\/p>\n
While Bitcoin may soon be susceptible to a short-term drop, one that may bring it back to the $7,000 range, the case for a long-term bullish trend is starting to be realized yet again.<\/p>\n
Asreported by this very outlet previously, popular analystFilb Filbnotedthat by the end of November or start of December, the 50-week and 100-week moving averages will see a golden cross, which he claims is far more significant for the Bitcoin market that other technical crosses.<\/p>\n
Filbs chart depicts that after the last time the 50-week crossed above the 100-week, Bitcoin rallied for months straight, surging to fresh highs month in, month out. Historical precedence would suggest the same is about to happen again.<\/p>\n
Also, trader HornHairs has noted that he likes the chance we hit $14,000 before $7,000. But why, exactly, does the trader expect Bitcoin to surge higher by 55% from the current price of $9,200 over the alternative scenario of a collapse to $7,000.<\/p>\n
Well, it has much to do with where Bitcoin has just bounced from and where it closed October. He remarked in a recent tweet that with Bitcoin bouncing strong and holding above the one-month bullish breaker, the 0.618 Fibonacci Retracement of the entire cycle, the Point of Control as defined by the volume profile, and the yearly pivot, BTC is leaning rather bullish.<\/p>\n
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