Bitcoin tanked in November on the back of high volumes, raising the possibility that the market has, to some extent, capitulated.
The largest cryptocurrency by market capitalization is currently trading at $4,000 - down 36 percent from its monthly opening price of $6,318 - according to CoinMarketCap data.
November's losses essentially mark an extension of the bear market with a high-volume drop to 14-month lows below $3,500.
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 relative strength index was reporting record oversold conditions a few days ago.
On the monthly chart, BTC is set to close below the former support of the 21-month EMA for the first time since October 2015.
On the 4-hour chart, BTC has fallen back below the double top neckline support at $4,120, having faced rejection at the falling trendline.
View The bitcoin market is likely showing signs of capitulation.
A break below the neckline support of $4,120 has neutralized the immediate bullish outlook put forward by the double bottom breakout yesterday.
A move below $3,771 would invalidate the bullish setup on the daily chart and allow re-test of the recent low of $3,474.
Bitcoin image via Shutterstock; price charts by Trading View.
Capitulation? Bitcoin's Price Dropped 36% in November
Published on Nov 30, 2018
by Coindesk | Published on Coinage
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