The end of November saw Bitcoin breaking below a supporting trend line that has been in place since August of 2015. This is a rather significant event with the failure of Bitcoin bulls to bring the price back above the supporting line and hold the position. This has reinvigorated bearish sentiment, and displayed a lack of buyer interest.
The recent breakdown of the price of Bitcoin has shown as an EW pattern on the daily chart with the relief rally looking to be more of an ABC correction that a real bull rally. Buyer interest is still waning and bringing long-term investors to the table for selling with weak buying pressure. That said, it is likely that Bitcoin makes a spike in December month up to $4.6k and breaks down further from this point. Below current prices lies a large liquidity pull which would give buyers interest in buying between $1800 and $2300.
Additionally, monitoring of social media and sentiment has many calling this current level the bottom which adds to my belief that we have not yet seen the bottom as those still in the market are hopeful for a rally. True capitulation comes with despair, and though the Bitcoin community and traders have displayed much sadness they have not yet capitulated.
The recent breakdown of the price of Bitcoin has shown as an EW pattern on the daily chart with the relief rally looking to be more of an ABC correction that a real bull rally. Buyer interest is still waning and bringing long-term investors to the table for selling with weak buying pressure. That said, it is likely that Bitcoin makes a spike in December month up to $4.6k and breaks down further from this point. Below current prices lies a large liquidity pull which would give buyers interest in buying between $1800 and $2300.
Additionally, monitoring of social media and sentiment has many calling this current level the bottom which adds to my belief that we have not yet seen the bottom as those still in the market are hopeful for a rally. True capitulation comes with despair, and though the Bitcoin community and traders have displayed much sadness they have not yet capitulated.
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