Bitcoin, slowly climbing with heavy steps, continues to experience rapid declines. Despite the bulls’ struggle to maintain the $96,000 mark, recent lower lows have heightened concerns about more significant losses. This raises the question: could the November decline be considered a normal movement for cryptocurrencies? Testing the market bottom for the third time since the bear markets suggests otherwise.
Historic Bitcoin Decline
For a decline to be historic, it must threaten a longstanding trend. Unlike previous downturns, Bitcoin’s losses in November pose a threat to the rising movement that has continued since the bear markets. Analysts have noted weekly and monthly chart deteriorations since October.
The chart above shows a triangle forming from the rising resistance line from the previous bull market and the ascending trend line beginning in the bear markets. Overcoming this resistance could lead Bitcoin to abnormal peaks, yet it has repeatedly reversed from this point.
Currently, Bitcoin is testing the rising trend support line from the $15,500 market bottom for the third time. Previous tests led to interpretations of fake rises, yet BTC later reached higher peaks. Unlike the previous two tests, the failure of the rising resistance line has elevated concerns about a possible trend alteration.
Cryptocurrency Commentary
Predicting the direction is impossible because the future is unknown. What is certain is that Bitcoin is preparing for something significant. A support breach could signal a new era, announcing the start of a bear market cycle below $85,000. However, if support holds, a new all-time high could be on the horizon. Market analyst Mags cautions investors of an impending moment on November 16th.
Ali Martinez points to the continued alarming inflow of bitcoins into exchanges.
In the last 72 hours, more than 10,000 Bitcoins, valued at 1 billion dollars, entered cryptocurrency exchanges.
Columbus released current heat maps. BTC dropped below $96,000, forming two major 15-minute bearish candles during article preparation. The extreme level of fear fuels the hope that the bottom is near, a point highlighted by analysts.
Maximum fear at the weekly cycle’s nadir often precedes a strong rebound. It may follow another downward move or some consolidation. Today holds an essential weekly closing; closing above $99,500 is unexpected, though once a momentum starts, it often rises faster than anticipated, leaving most behind. Fair markets, see you soon!
Is there any good news?
Strategy will announce a significant purchase on Monday, with Anchorage Digital buying 4,000 BTC. Despite chaos, BitMine has accumulated an additional 19,500 BTC. A whale closely linked to the Satoshi era acquired 420,000 ETH. While most are fearful, some act boldly, yet more is needed as extensive selling continues.