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Bitcoin: Bearish 'Shooting Star' Forming; Lower Prices To Come

Published 12/11/2017, 04:19 pm
Updated 09/07/2023, 08:31 pm

Further to my last post of October and update of November 2, a bearish "Shooting Star" candle formation is in the making on this Monthly chart of Bitcoin...warning signs that we could see a further sell-off to, potentially, the 5000 level, which is the nearest major support level, or even lower to 3000, the next major support level (last hit on September 15).

Volatility is no stranger to this cryptocurrency, as price has plunged nearly 1700 points in the past four trading days, and I doubt that this will change any time soon. Price is currently trading at 6200 as I write this post on November 11 at 1:45 pm ET.

BTC/USD Monthly

Both the Momentum and Rate-of-Change technical indicators on the Daily chart below are hinting of lower prices to come.

BTC/USD Daily

As an example of volatility and parabolic moves, look no further than the graph below, which depicts the percentages gained Year-to-Date on the SPX, the five FAANG stocks (Facebook, Amazon, Apple, Netflix and Alphabet/Google), and Bitcoin. The percentage gained in 2017 in BITCOIN is 2.5 times that of all five FAANG stocks combined.

Performance: SPX:FB:AMZN:AAPL:NFLX:GOOGL vs Bitcoin YTD

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