Bitcoin has been showing extremely price movements in a . Though many people think that the bottom is in and that bitcoin is due for a bounce, the monthly chart suggests otherwise.
- Last time we had a death cross on the moving average convergence divergence ( ) on the month chart was in July 2018.
- After that dead cross, we saw a 64% move down.
- The Novermber candle has just closed days ago, and we are looking at a potential death cross for December 2019.
- Though we have seen bounces in the moving averages, the likelihood of this happening on the monthly chart is very low, as the on the monthly charts have only shown clear golden and death crosses.
Bulls have gained more confidence, as the long short ratio sits at 49:51
What We Believe
As people are still optimistic about the market, with a lot of bulls thinking the bottom is in, we believe that there is more room to go down, especially with an incoming potential death cross on the monthly , a clear sign that the market is . As mentioned in our previous analysis, unless we see strong signs of reversals backed by strength, , and momentum, all the small bounces that we witness during our way down may most likely be due to bears' attempts to provide liquidity in the market for their increase in short exposure, or their taking profits from short positions.
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