Bitcoin was looking a bit scary last week, especially for bulls hoping for a major reversal. It could still happen, but time is running out to stop the local downtrend before it becomes locked in, and puts in a lower low. The leading crypto has, however, hell nicely over the weekend within the key 0.618-5 Fibonacci retracement are, and the daily indicators nay be turning. Meanwhile, OKEx’s exchange token OKB keeps steaming up. It is currently trying to lock in its own long term uptrend.
OKB
This exchange token, issued by OKEx, continues to impress as the weeks go by. It has been retracing since August after achieving new all-time highs, and may have recently put in a bottom on this retracement. Retaking a very key level on the OKB chart would help confirm a resumption of uptrend on a large timeframe.
Starting on the 3-day OKB/USD chart, we see OKB fighting with this critical zone which drives through the center of the entire chart. This level has already been pierced, but without new follow through on the upside. Holding here represents a higher low on this very high timeframe, which is auspicious in the very long term.
OKB chart by Charts.Cointrader.Pro
Volume here has been flat for a while, though. A further retrace to the 55 EMA would be acceptable, and still preserve the possibility for a long term reversal.
OKB chart by Charts.Cointrader.Pro
And if we look on the daily chart, we see OKB holding pretty well within a rising channel, and also holding all of the daily EMAs. It is right on the level here, and holding this purple band of support will likely build a base for more moves up.
On the OKB/BTC 3-day chart, we see that OKB is attempting to break the local high. Doing so would confirm a new uptrend. The 55 EMA here held very well, for about a month, and could have formed the bottom of the local market.
OKB chart by Charts.Cointrader.Pro
The histogram is pointing up, but not expanding up. Volume has also been pretty low at this retest area, and we could see a rejection at this resistance band. If we do, some consolidation going into the new year will yield an eventual break of this resistance.
Overall, on neither chart has OKB locked in the bottom of its retrace and new long term uptrends. But things are seeming to go in that direction, and if OKB can get some volume to push it above these respective key levels, we could see further gains in 2020.
BTC
Bitcoin was looking great at the end of October, but halfway through November has seen a damper on the bullish outlook. A retrace from the powerful October 25 surge is threatening to turn into a collapse back through below $8,000, as the leading crypto slides through the retracement scale.
Looking on the daily chart, we can see that Bitcoin is getting down to a critical level. It’s now at the bottom of a band of support derived from previous resistance; and this area is also where the prime retrace target of 0.618-5 lies. It is being supported here for now – but sliding much further could mean a major blow to market confidence, and the belief that Bitcoin has indeed reversed from half a year of downtrending.
The good news is that this level has held through the weekend, after repeated attempts to push price down. Continuing to hold here might effect a bullish reversal. Turning at Bitcoin’s daily RSI, we see that an uptrend line is being stressed for the second time in a month – although it’s plain to see that the last time this trendline broke, it was just a momentary affair. This break of the trend, however, is already looking more substantial than the previous piercing below it.
On the histogram, a very choppy downtrend may have reversed over the weekend, although the lack of smooth movements lately on this indicator forces us to be cautious with any estimations. It’s clear here that the market has been highly contentious, as there are almost no smooth gradients to be found here during the last month; as one would find in a smoothly trending market.
Meanwhile, Bitcoin dominance is continuing to fall versus the altcoins in general. We can see that altcoin dominance has recently broken a resistance level, and very likely has put in a bottom. Bitcoin, on the other hand, may soon retest a support level that is keeping it out of the mid- and low-60% range.
Altcoins may be doing decently now (some of them, anyway), but if Bitcoin falls through $8,000, nothing is likely to do well.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
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