The Bitcoin price has nose-dived to $8,470 after failing to conquer the $9,000 level earlier today. The top coin by market cap is down by more than two percent at the time of writing.
With its latest move, Bitcoin has once again tricked chartists who were looking for a perfect long opportunity based on the asset's technical setup.
Earlier today, crypto trader "The Wold of Wall Street" pointed out that BTC formed a "golden retracement," which would make perfect sense to go long.
$BTC— The Wolf Of All Streets (@scottmelker) November 15, 2019
Once again, we have a perfect "golden pocket" retracement. Price dipped slightly below the 61.8% Fibonacci level and then used the line as support. Technical Analysis 101 says that is a perfect long entry. Too bad there's no sure things in TA. pic.twitter.com/O0Yl48M1n1
Trading expert Josh Rager was quick to weigh in on the most recent drop, claiming that a weekly close below the $8,235 level would lead to more selling pressure. He also says that low-time frame BTC charts look "ugly."
$BTC Update— Josh Rager 📈 (@Josh_Rager) November 15, 2019
Bounce off of $8,370s, this area acted as resistance for during the previous range (outside the fake-out pump in early Oct)
This area needs to hold, a weekly close below $8,235, imo, would lead to more downside
Currently, every time frame under monthly looks ugly pic.twitter.com/WPri5cDzLM
Meanwhile, the "100 eyes" cryptocurrency scanner has spotted a bullish divergence, which is formed when the stochastic oscillator doesn't make a new low in tandem with the BTC price. Hence, there is also a possibility that this shakeout could mark the end of the ongoing bearish trend.
🚨 Crypto alert:— 100eyes Crypto Scanner 🌐 (@100eyesCrypto) November 15, 2019
[BTC-USDT] RSI Bullish Divergence (1h) pic.twitter.com/7QtNg6h1aD
Bitcoin definitely has a penchant for unexpected moves that cannot be predicted by technical analysis (TA). As reported by U.Today, the top coin by market capitalization surged by more than 30 percent on the same day it formed a death cross on its daily chart.