Crypto enthusiasts were crushed over the Thanksgiving holiday when a fight over Bitcoin Cash and very thin liquidity prompted a massive price breakdown from recent highs. This downside move reflects a true price breakdown where Bitcoin bulls have to rethink their future strategies.
Back in October 2018, we warned that price MUST rally above the support level near $6986 in order for any future upside advance to take hold. The following week, we saw a massive price rally that lasted only a few hours and trailed off back below the $6986 support level. While we waited to see if any future price move would prompt a rally above this level, the Bitcoin price levels continued to congest.
The breakdown move over the past two weeks has been massive and hit our first target of $4000 as expected. From the recent highs, the downside move totals -52.81% so far. Our research team believes true support is near $2995 – a further -25% lower from current levels. This equates to a massive -65.85% decline in the past 40+ days.
There may be an opportunity for fresh long trades near the end of this year. We’ll alert you to any opportunities we see in the crypto-currencies as they set up. Right now, we would warn Crypto longs and enthusiasts to be very cautious of any further breakdowns in price. If the $2995 level does not hold as support, we could very easily the $1860 level before the end of January 2019.
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