[2017-10-31] Signs of Divergence May Point to Potential Distribution Phase

[bbc.reporter]

If the technical analysis in this article is reliable, then the bitcoin market is getting ready for another crash, and if I understood it correctly, which I am no that confident, the drop might reach as low as $3500? Is that still possible? What does everyone else reckon?

Please explain it to me like I am 5.



If the market begins to reverse on a macro scale, we can expect to find support along the Fibonacci Retracement values shown above. Also, on the 1-day candles, there is historic support along the 50 EMA and 200 EMA. Over the course of the last year, bitcoin has yet to successfully break below the 200 EMA (shown in red), so we can expect to see a significant level of support along the 200 EMA.

With the uncertainty surrounding the upcoming hard fork, it’s fairly difficult to anticipate how the market will behave.

Read in full https://bitcoinmagazine.com/articles/bitcoin-price-analysis-signs-divergence-may-point-potential-distribution-phase/

[davis196]

This is not a prediction for another crash.They say that it`s diffcult to predict how to market will behave.
The upcoming hard fork might hit the bitcoin price ,but i`m optimistic that the price will recover during December.How do you predict a 3500 USD drop based on this analysis?

[pooya87]

i am not an expert in technical analysis but in my experience it will never work to make a speculation like this. and i have seen the same speculation, and using of Fibonacci retracement to predict the bottom and it never works. they say it will drop to X based on it each time there is same patterns but in the end it will be just a waste of time to focus on TA.

is it possible?
yes it is but it is as possible as rising to $8500 in the same time frame.

[bbc.reporter]

This is not a prediction for another crash.They say that it`s diffcult to predict how to market will behave.
The upcoming hard fork might hit the bitcoin price ,but i`m optimistic that the price will recover during December.How do you predict a 3500 USD drop based on this analysis?

I was assuming that if I understood one the charts correctly, it is pointing to $3500. But I am also asking all of you if I was right. You should read the whole article and look at the other charts shown to know.

Please post your view of the analysis. Thank you.