- Bitcoin continues with the bottom seeking action in readiness for a better show in December.
- A falling wedge pattern forms to counter the effects of a recently formed death-cross.
Bitcoin is staring into a bottomless pit mid though the month of November. The past two years have seen Bitcoin start to stir movement upwards in November. However, this year Bitcoin seems to be searching for a bottom and is likely to break the historical pattern.
Following the correction from the recent high at $13,839, Bitcoin embarked on a lower high and lower low pattern. Initially, the trend was narrowing towards $10,000. However, the tightening bearish grip saw Bitcoin shift the focus to levels around $7,000.
Towards the end of October, BTC/USD made a surprise return above $10,000. The price rose above $10,500 before reversing towards $9,000. The upsurge was connected to China’s President, Xi Jinping positive remarks regarding blockchain. The Chinese government said that it was ready to support blockchain and also encouraged industries to increase research into the technology.
Meanwhile, Bitcoin is struggling to stay afloat above $8,500. Advances towards $9,000 fizzled out short of $8,800. Instead, Bitcoin has refocused its aim towards $8,000 and $7000 levels respectively.
Bitcoin also appears to have averted the dire effects of a death cross. The pattern occurs when the 50-day SMA crossed below the 200-day SMA. A death cross usually ends up in sharp devastating declines.
For now, the 50-day SMA is offering immediate support at $8,530. A forming falling wedge pattern means that a significant reversal is in the offing. Bitcoin is likely to continue with the search for a viable bottom in the rest of November. As the falling wedge pattern nears a breakout, December could be an action-filled month.