Bitcoin’s (BTC) Price Dove 36% in November

Bitcoin’s (BTC) Price Dove 36% in November

Bitcoin’s (BTC) Price Dove 36% in November

$BTCUSD

Overview

  • 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.

Monthly Chart

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.

4-hr Chart

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

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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