The market seemed hopeful this weekend but all came to an end on November 10th when Bitcoin dropped over 20%. During the rally, Bitcoin received much mainstream attention with articles coming from CNN, Bloomberg, and New York Times. As a result, many new users found out about Bitcoin and purchased some to join the rally. However, with the recent collapse in prices many are left with a feeling of disappointment and failure towards their decision of purchasing Bitcoin. On the bright side, black friday is coming up and if you have some left over Bitcoins you can spend them and save on gifts by visiting either bitcoinblackfriday.com or bitcoinblackfriday.info.
Even though bitcoin is hovering around $300, it is still up from a month ago before this correctional bubble. While we remained hopeful that the market would stabilize above the $350 support, over 10,000 BTC was dumped on the major exchanges which brought the price as low as $290. Since then we tested support at $300 three times, suggesting that the market is trying to stabilize above the $300 support. The current resistance point is $320, we tested it twice on the rebound from $290.
Edited chart taken from bitcoincharts.com, is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.
Unless bitcoin breaks through $320, the short term trend is bearish, break below support targets are $270-$260. FxWirePro from tradingview suggests that “It is good to sell on rallies around $330 with SL around $370 for the TP of $270/$256”
For the optimists, Mutt7 from r/bitcoinmarkets suggests an interesting strategy to sell in the $x00 levels such as $305 or $405 and buy in when the price crashes even further. The $x00 levels have a psychological effect that serve as almost a barrier to exit on a rally. Those who followed his advice and sold right around $502 on November 4th could have caught the very top.
UPDATE:
Bitcoin is showing signs of life with an unexpected $25 pump. Its never boring in bitcoinland, get your popcorn ready.
Image taken from bitcoinwisdom.com
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