Bitcoin Implodes, Again, Is It Time To Buy, Sell, Or HODL?

November 19, 2021

Bitcoin Drops below MA Support. Sell, Buy, Wait?

The flagship cryptocurrency has slipped infra the 50 days Blown Average for the first time since the 1^st of October and is currently trading at $56,300, totaling a 13.0% expiration over the ultimate 7 years. Most of the top coins are trading in the red ink, with Ethereum dropping briefly below the $4,000 scar and losing over 14.0% in the live on 7 days, while Binance's BNB is down well-nig 13.0%. Even the two meme coins – Dogecoin and Shiba Inu – are lowered 15.0% and 20.0% severally.

Part of the dip could comprise attributed to concerns related to Mt Gox creditors who are likely to become sellers to pay off their assets. As some of you know, Mt Gox was an exchange that collapsed in 2014 after losing about half a trillion US Dollars in Bitcoin, allegedly due to a machine politician. Just recently, a Tokyo court legal plans to pay back these creditors and the general opinion is that all but of them will start selling once they actually arrive the money.

Meantime, cryptocurrency continues to tincture fear in the hearts of politicians. During an online appearance at Bloomberg's New Economic system Forum, former Secretary of State, and former Representative presidential nominee Hillary Clinton, claimed that cryptocurrency could take exception the persona of the US Dollar A the global's reserve currency and furthermore, that IT may destabilise nations.

"One more area that I hope nation-states get down paying greater attention to is the rise of cryptocurrency — because what looks like a very gripping and unusual sweat to literally mine new coins in order to deal with them has the potential difference for undermining currencies, for undermining the role of the dollars as reserve currencies, for destabilizing nations." Depending connected who you'Ra interrogatory, her wrangle could be viewed arsenic bullish for crypto in general.

Chart Analysis – BTC/USD

The pair is currently trading at levels terminal seen in mid-October merely the pullback was foretold by a pessimistic divergence that appeared at the most recent Incomparable Inebriated.

If we equivalence the two recent peaks (noble rectangles along the graph below) with their correspondent ones on the RSI, we can see that price made a higher high, while the index number made a lour higher. This is called regular pessimistic divergence, it appears in an uptrend and is a sign that a retracement will soon occur.

Price has the latent to go on more to the south, especially because the 50 years Mom was just broken and this usually determines more traders/investors to deal out, but on the other hand, bullish divergence is also present. If we look at the afoot position of the RSI and its position when price successful the previous low, we can discover a divergence between monetary value and the RSI – non a strong divergence but standing something to take into consideration.

If we compare the current RSI position with its spatial relation when price last touched the semipermanent-condition uptrend transmission line, we can see a clearer divergence. With this in mind and considering that BTC is in a strong uptrend, it's likely to see a return above $59,000 and to a higher place the 50 MA in the near future. To the south, the close support is located at $53,000.