Bitcoin is bleeding–What a plunge in the European trading season!
Bitcoin is dangling and on the brink of closing below a critical support trend line as visible in the daily chart.
Still, there is hope for permabulls optimistic of a turnaround to $60k and even $64k in the medium term.
For all, there is, Bitcoin sellers are rampant.
Bitcoin Market Performance and Price Status
Technically, the inability of BTC bulls to break above $60k in follow-through of the dead cat bounce of last weekend signaled weakness.
Already, Bitcoin bulls appeared exhausted, reversing from the $60k resistance line flashing with November 18 highs.
Notably, for the better part of this week, BTCUSDT prices were still stuck in a distribution in a bear breakout pattern following the deleveraging of November 16.
The November 16 and 18 bear candlesticks were wide-ranging and with high trading volumes signaling participation–and bear determination.
The bullish attempts of early this week were with comparatively low trading volumes, which from an Effort-versus-Result perspective tipped the scale to favor sellers.
Therefore, with prices tanking on November 26 below $55k, the uptrend has been invalidated, and sellers are squarely in control.
Apprehensive traders can watch closely how BTCUSDT prices react at the primary multi-week support trend line. As mentioned earlier, a strong confirmation forcing prices below $53k and the support line could effectively invalidate the uptrend.
In that case, sellers might drive BTC prices back to September 2021 lows of around $40k.
Bitcoin on a Worrisome Level
On Twitter, one trader is cautious on the strength of the uptrend, saying Bitcoin is trading at worrisome levels.
#bitcoin Price Action Cheat Sheet.
Your level of concern should be correlated to the area where price activity goes.
RIGHT NOW: price action is very good. Still likely to see a parabolic move. pic.twitter.com/Ql17bUAWII
— TheGoldPrairie (@TheGoldPrairie) November 22, 2021
Notably, the retracement of prices to retest the primary support line, as mentioned earlier, calls into question whether bulls stand a chance.
As from the BTCUSDT chart, Bitcoin is hanging by the trend.
If bears push prices below $53k, BTC would be trending at a five-month low relative to the support trend line divide. This will squarely place BTC bears in charge, a very worrisome development.
BTC Nuking is a Sell Signal
Falling BTC prices, one trader analyzes, is enough signal to indicate selling pressure after periods of sideways movement.
#btc trendline breakdown caused a huge nuke, it was a key indicator to open shorts. I personally stayed flat, but now seems like a missed opportunity. Going to continue to stay flat for more price action to form. Not sure what's next. pic.twitter.com/d9xgCNelkq
— Omz (@omzcharts) November 26, 2021
BTC is now within a bear breakout pattern to register a new weekly low, subsequently confirming last week’s losses.
Based on the daily chart’s price action, sellers will always be in a commanding position as long as prices trend below $60k—a psychological round number and around this week’s high.
Therefore, with a developing trend and a “missed opportunity” in the NY session, the analyst says market participants should wait for clear sell entries. Considering the state of price action in the daily chart, BTCUSDT may shed more in upcoming sessions.
Bitcoin Bulls Will Bounce Back
Still, not all traders are bearish.
#Bitcoin Bitcoin loves to ryhme with previous price actions. Waiting for a bounce to 63k area. That area will be key point to go 80k's or 40k's. Not expecting a wick below 50k's for now. $BTC pic.twitter.com/BZ3mkbe96z
— Yiğit (@mstfyigittkn) November 26, 2021
One analyst on Twitter is adamant that Bitcoin prices move in pulses, synchronizing with past candlestick arrangements giving hope to bulls.
Per the analyst’s expectations, Bitcoin prices will steady above $50k before bouncing back in an ABCD formation, eventually lifting BTC back to $63k.
Subsequent reaction at this level will determine whether BTC rallies to new all-time highs of $80k or tanks back painfully to $40k—September 2021 highs.
Charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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