Bitcoin faced the largest price drop of the year and it seems that the cryptocurrency is set to end the month on a negative note. Closing below the $8,300 looks like a decent prediction so let’s see further in the bitcoin price news below.
The hourly chart continues to urge a move higher to the $7,800 and $8,200 but a bullish reversal could be confirmed on the three-day charts if the prices close above the $7,280 today. The acceptance below the $6,515 could invalidate the bullish hammer candle that is seen on the three-day chart and invite the strong selling pressure. Bitcoin faced the largest monthly loss of 2019 despite the recent recovery from the six-month low.
Right now, the number one cryptocurrency is priced at $7,530 on Bitstamp which represents a 17.6 percent loss from the start of the month when the price was standing at $9.586. The percentage drop could have been more than 30 percent if the prices stayed at the six-month low of $6,515. Bitcoin suffered a bigger monthly loss in November last year and the prices dropped by 27 percent, reviving the sell-off from the record high of $20,000 that was reached in 2017 in December. The cryptocurrency went on to hit a new low of $3,122 in December 2018.
Bitcoin was expected to pose good gains in November with the miners’ reward halving coming in May 2020. The cryptocurrency picked up slightly six months ahead of the supply-cutting event. The run-up period has started with a heavy price drop because of the miners who started selling off their bitcoin as noted by popular analyst Willy Woo. Bitcoin plunged from $13,000 to $7,500 in the third quarter and then the price took its toll on the miners’ profitability.
Looking forward, Bitcoin could suffer a deeper drop in December if the prices end the current month below $8,300 as Woo predicts. The monthly close above $8,300 looks unlikely and that said, the price could increase to $8,000 before Saturday closes as short-term technical and bullish signals occur. Bitcoin bounced back from the former resistance-turned-support of the inverse head and shoulder pattern at $7,360 reinforcing the bulls.
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