November 18, 2019 | AtoZ Markets - It's another bearish day for the cryptocurrency market. The market has lost nearly $2.5 billion in the last 24 hours as all the top 5 cryptos fell significantly. At the time of writing, Bitcoin was breaking below the $8,500 low and will most likely hit its lowest in three weeks. Prior to the current slump, there were sharp spikes on three different occasions in November but the bullish momentum was not enough to cause a significant recovery. Although the Bitcoin price pattern in November looks choppy, the bearish direction is very clear. Technical patterns also indicate that the dip from $10,500 is corrective. However, the correction is going deeper and taking longer time than expected. While this might make recovery expectation from prices above $7,300 a bit doubtful, it remains the more preferred scenario.
Bitcoin price drops 5% in 24 hours
The market performance on Monday is bearish. BCH which has been the top performer in November among the top 5, is the biggest hit with over 12% decline. Bitcoin has so far shed nearly 5%, Ripple 7%, Litecoin 9.25% and Ethereum is the least hit with 3.5% decline. Today's setback has reduced Bitcoin gains in the last 30 days to 4.8%. BCH still leads by a wide margin with nearly 20% gain in the last 30 days. Ripple is the only top 5 crypto with al loss in the last 30 days (-13%). Meanwhile, Bitcoin still leads in the last 12 months and in 2019 YTD.
Bitcoin Elliott wave analysis
The dip from $10,500 still looks corrective. At the end of a correction, the prior trend usually resumes. In the last update, we used the chart below. We identified an ending diagonal pattern at $8,500 and reckoned it might be the end of the bearish correction (All the charts used are from TradingView).
The good thing about an ending diagonal is its after-formation price behaviour. The price often reacts with a quick counter-move after an ending diagonal pattern completes. If the price goes sideways, it's an indication that a reversal will not happen yet and the pattern gets violated 70% of the time. At the end of the diagonal at $8,500, the price went sideways after a minor breakout (fake breakout). However, as the new chart below shows, another ending diagonal pattern is emerging just below $8,500.
Just like the first diagonal, the pattern will be valid if the price breaks above $8,750 and shoot toward $9,000 afterwards. Otherwise, the current decline will continue to the $7,800-8,000 Fibonacci support zone.
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