Late last month, Bitcoin (BTC) caught traders across the industry with their pants down: in a day’s time, the leading cryptocurrency had pumped by 42%, surging from $7,200 to $10,500 in a jaw-dropping, historical move higher. In fact, that day marked Bitcoin’s fourth-largest daily move… ever, and the largest price jump by percentage since 2011.
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Despite this surge higher, the crypto market has continued to bleed out. As of the time of writing this, the price of BTC has reached $8,535, trading a mere 1% or 2% up in the past 24 hours. Mild reprieve aside, an analyst has asserted that BTC has reached its “last line of defense,” which must hold, or disaster will ensue.
Bitcoin Price Must Hold $8,300
Analyst CryptoDude recently noted that Bitcoin’s chart shows that “bears absolutely undeniably have the upper-hand right now,” before adding that unless bulls pull something spectacular, “it will get really grim.” He then referenced the chart below, stating that if $8,270, which he dubbed the “last line of defense,” is lost, pain could follow.
$BTC looks horrendous. Absolutely undeniable that bears have the upper-hand right now. Bulls must pull off something spectacular at 8270 or it's going to get really grim.
My hopes are slim to none. This is the last line of defense. pic.twitter.com/yPfSTH7cFe
— CryptoDude (@cryptodude999) November 16, 2019
CryptoDude’s assertion that BTC is treading on very dangerous territory in the low-$8,000s is similar to that made by another popular trader, TraderX0. He pointed out in the tweet below, which was published on Saturday morning, that a close “below $8,300s won’t be good.” As he points out, $8,300 is a key support level in a descending channel that aligns with horizontal support.
Close below 83s wont be good pic.twitter.com/xjA5r8v3Sj
— TraderX0 (@TraderX0X0) November 16, 2019
While BTC could bounce off $8,300, the ball may be in the court of bears. Capo of Crypto recently noted that the aforementioned 42% jump, while bullish in and of itself, wasn’t a convincing sign that the bear trend has come to a head.
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He remarked that the jump to $10,500 validates a series of lower highs and lower lows, indicating a still-bearish trend. That’s not all, the Guppy/Fishnet Indicator is still printing gray bands, implying that the medium-term trend of Bitcoin is still undecided, and may actually be leaning bearish, not bullish.
One of the first things that I look at in order to see if the trend has changed, it is highs and lows.
If we don't have a new series of higher highs and higher lows, trend would remain the same (bearish)
— il Capo Of Crypto (@CryptoCapo_) November 12, 2019
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