Bitcoin (BTC): Goodbye or Good time to Buy?

Key points:

  • Bitcoin’s daily price overview
  • Bitcoin’s price in recent days
  • Bitcoin’s current trend
  • Bitcoin: Goodbye or Good time to buy?

Bitcoin and Altcoin’s bulls are fighting on Monday, after bears had most of the control in the previous week.

The biggest cryptocurrency by market cap and world’s best known has slowly started recovering above the $4,000 market on Sunday (Novermber 25 – according to CoinMarketCap data.)

We are receiving many questions from our members asking if they should buy, hold or sell. 

The honest answer is no one knows. We do what we do for you guys to stop gambling and start using evidence to support your statement (regardless of the direction Bitcoin’s goes).

Follow our TradingView channel for price updates and trading ideas. None of the content posted should be considered as a financial advice.

BITCOIN’S DAILY PRICE OVERVIEW

On the 14th of November, the price of  Bitcoin had ended its one month period of sideways movements and it has crossed the 20 days (MA) Moving Average.

“Officially” it has created a  bearish trend and since then, the price had 8 “come back” attempts, but all 8 have failed.



BTCUSD – 4H Chart Analysis by ReadBTC on TradingView.com

For now, the  RSI (relative-strength index) is 31, but it doesn’t seem it has enough power to get at least even close to it’s neutrality.

On top of that, the  Stochastic’s Moving Averages have intersected at the level of 48, meaning there is a potential drop coming – at least down to the level of 20.

The only indicator which is showing the opposite scenario, for now, is the  MACD. However, it’s Moving Averages seem to be close to an intersection. There is a possibility for us to see a continuation of the sideways movements, followed by another drop.

As possible targets, we can consider the Support Level of $3,750 or $3,691 in extension. The level of the lower standard deviation of the Bollinger Bands.

Overall, the trading volumes are lower than before which means that without any fundamental, we shouldn’t wait for aggressive movements.

BITCOIN PRICE IN RECENT DAYS

Bitcoin’s price has dropped to as low as $3,660 (based on Bitfinex rates on Sunday), as brutal bears jumped in. The lowest price for Bitcoin for the last 420 days caused by the latest Bitcoin Cash fork (read previous article).

However, later in the day, some bulls joined the raid and decreased some of the losses. On Monday (November 26) Bitcoin was trading almost %5.5 higher crossing the $4,000 level once more.



BTCUSD – 1D Chart Analysis by ReadBTC on TradingView.com

On the daily chart, we can see how the bearish trend has started on the 14th of November – once the price has crossed the 20 days Moving Average.

It continued to move aggressively downwards since then, registering a movement of $2,846 by now.

Today, the price has reached the maximum of $4,212 and it has created a Resistance at this level. However, there are several reasons to believe that the drop in price will continue even if it will not be that aggressive as it was in the last days.

We already have the RSI on an “oversold” position for a while and the  Stochastic is showing multiple “intraday” price changes. Some of you might be tempted to say that the price will bounce back anytime soon.

Furthermore, based on a more advanced reading of the MACD – we can see that the latter’s Moving Average is still below the Signal. Meaning – there is still more room for the price to go even lower.

The trading volumes are decreasing and without any big news we shouldn’t expect “dramatic” changes, at least for the short term. Based on the actual scenario, we can consider as possible targets the first  Support Level of $3,740 or the second one of $3,439$, in extension.

BITCOIN’s CURRENT TREND

You must be tired of hearing the same thing: The cryptocurrency market is going down since last December. (We all see that right?)

Same statements are being repeated: “We are reaching the bottom.”

Then November 14th proves us otherwise, so was it the end? Nope, November 25th showed us that the bears had more to say.



BTCUSD – 1M Chart Analysis by ReadBTC on TradingView.com

After the market capitalization had decreased again, prices for the major coins have dropped aggressively. Bears breaking the previous “bottom” and reaching a new Support Level of $4,295.

At that stage, the RSI on a 1M chart was moving away from the “neutral” area (registering the level of 47) while the Stochastic’s crossover didn’t occur yet.  MACD was still below the Signal line which means that there is still more room for the price to go even lower – and that’s exactly what it did. 

The most important notice is that there is a current red candlestick which has big chances to be fully created below the 20 days Moving Average. If the price will not close the month higher than $6,377 at least, it can be considered as a technical price confirmation of the bearish trend.

If it happens, the next  Support Level of 2045$ can be a possible target in the future.

Of course, fundamentals remain strong – once major positive news will happen (e.x Bitcoin ETF), it should, once again, increase the trading volumes.

The trend can change and the price will have chances to go above the Resistance Level of 6641$.

GOODBYE (OR) GOOD TIME TO BUY?

Interest over time in the word “Bitcoin” for the last month  by Google Trends

According to Financial Times (ft.com) – Bitcoin’s crash is not the end of cyber currencies.

Cryptocurrencies have taught the financial world several lessons in 2018. Finally, we reached the days when banks and governments are being pushed to conclude that money must become more digital and transparent.

The IMF had suggested that the Central Banks should move to a digital-only form of fiat money, as it can ease the use of cash with the central bank ledger system to process and verify transactions.

However, the Morgan Creek Digital Partner – Anthony Pomliano remains positive.  He has stated to CNN: “Bitcoin Is Not Dead – It’s Beating Stocks, Bonds, Currencies and Commodities.”

“We have very deep conviction on a long-term basis. And if you look at the fundamentals, the 24-hour transaction volume on the Bitcoin network is about $4.6 billion as of lately, and the market cap is $74 billion.

So that’s about a 16-times multiple of transaction volume for market cap. That’s very similar to Mastercard which does about $11 billion worth of transactions and is valued at about $180 billion.

So from a value perspective, it’s right there on par with Mastercard.”

Anthony Pomliano to CNN.

Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.