Bitcoin Price Analysis for November 20, 2018
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
Bitcoin is declining on Tuesday, November 20, trading at $4,501.1.
The volatile crypto hit its lows on D1, with the price following the long term descending trend. The target may lie at the current long term support, i.e. $3,000.
The long term downtrend also has an inside descending channel. On H4, the price is near this midterm channel support, $4,000. A pullback may follow, sending BTC to 23.6% ($4,605.00), 38.2% ($4,972.00), and 50.0% ($5,275.00) Fibo.
The Bitcoin selloff started two weeks ago, and over that time it lost nearly 30%. Meanwhile, the crypto market cap decreased by 31% and is now a bit over $150B. In January 2018 it was as much as $830B, so the decline is great.
Some say the reason for such a massive selloff are the global ETF’s. According to the analysts, large investment funds want to buy a lot of BTC to then use it as a base collateral. This is why they are just sending it down on purpose. If this is correct, the Bitcoin is likely to reverse soon.
Fundamentally, Bitcoin’s fall, as well as popular altcoins’ decline, may be explained with the Bitcoin Cash hardfork. This heated up volatility that struck Bitcoin.
Besides, Binance stopped working for a while. It is having issues every now and again, but is still popular with investors. While Binance was under maintenance, there were massive fluctuations on other exchanges with no particular reason.
Human factor plays an important role, too. The conditions on the crypto market are the same as a year ago, when there were reasons for volatility found every day. Over this summer and fall the market calmed down and became less interesting; as the whipsaw is back, the market is attractive again.
Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex and Smartereum shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.