It Seems That Yesterday's Tumble Was A Flash Crash but What Will Come Next?
November has been a difficult month for Bitcoin. The world's first cryptocurrency started the month trading at around $9200 and it is trading now roughly $2000 lower at $7200 which is a 20% change.
This is not too dramatic for a volatile asset like Bitcoin considering it just recovered from yesterday's flash crash. Bitcoin has quickly recovered from it's drop to $6500 back to previous prices of around $7200.
Many different factors have been cited as a reason for Bitcoin's decline in November. The most popular theory is uncertainty with Chinese regulations. The drama surrounding the Block & Binance may have caused the flash crash and further price declines this week.
The biggest question right now with Bitcoin back at $7000 is "Are we in a bull or bear market?"
A Look Into BTC/USD Charts
It seems that Bitcoin found support on 7150 USD 38.2% Fibonacci level on 1D chart.
This is a great thing as we are expecting MACD to flatten up as its negative Momentum just right now showed us a reversal sign to the Positive one. It seems like a great time to trade actively. Following Volume Profile we can see next resistance level. ADX & DI are recovering very quickly so we just need to wait a bit. Pay attention on volume as suddenly it started to grow up quickly.
In layman's terms, things seem cautiously optimistic.
A special thanks to Senin for his technical analysis insight.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado