Bitcoin’s (BTC) Price Dove 36% in November
- The Bitcoin market is likely showing signs of capitulation.
- A break below the neckline support at $4,120 has neutralized the immediate Bullish outlook put forward by the double bottom breakout Thursday.
- A move below $3,771 invalidates the Bullish setup on the daily and allow re-test of the recent low of $3,474.
- A break above $4,250 would open up the Northside to $4,761 the resistance on the 4-hr chart.
Bitcoin (BTC) dover in November on high volumes, raising the possibility that the market has potentially capitulated.
Bitcoin the largest cryptocurrency by market capitalization is currently trading at $4,010.50 currently, is down 36% from its monthly opening price of $6,318. That fall marks the biggest monthly loss YTD.
Amid the losses, trading volumes jumped by 33% M0M to $158.48-B the highest mark since May.
It is worth noting that, at the start of November, Bitcoin was already down close to 70% from the record high of almost $20,000 reached in December 2017.
So, November’s losses mark an extension of the Bear market with a high-volume drop to 14-month lows below $3,500.
But BTC’s failure to produce a strong bounce despite the repeated defense of the 21-month EMA in 5 months to October might have investors disappointed, resulting in the increased sell-off as they left the market.
It is still too early to call a long-term bottom.
In the last few days prices have recovered from lows below $3,500 possibly just bargain hunting after the sell-off, but potentially the start of a corrective rally, as the 14-Day RSI reported record oversold conditions a few days ago.
On the monthly, Bitcoin is set to close below the former support, now resistance of the 21-Month EMA for the 1st time since October 2015.
A long-term Bullish reversal would only be confirmed if and when prices clear the EMA, currently lined at $5,977.
On the 4-hr Chart, Bitcoin has fallen back below the double Top neckline support at $4,120 rejected at the falling trendline. As a result, the immediate Bullish outlook has been neutralized.
The recent low of $3,474 could come into play if 1st support at $3,771 is breached.
A break above the falling trendline, if confirmed, bolster the Bullish technical setup and could yield a stronger rally toward $5,000.
We wait, We see…
Have a terrific weekend