Bitcoin was trading in a sideways trend most of October, with a modestly positive trend at the end of the month.
Contrary to September and October, November started with increased volatility.
One of the largest crypto exchanges, FTX, filed for Chapter 11 in November.
In October, crypto markets noticed another sideways price action with few short-term pumps and dumps.
Bitcoin’s price action was tighter than in September. It ranged between $18k and $21.5k. The period of extremely low volatility was over with FTX and Alameda event in early November. The price of Bitcoin collapsed below a crucial support at $18k, more precisely to the $15-16k level. This means a new trend is established after a long consolidation period (June-November).
The chart shows more considerable support at a $12-13k level (red color). If this level doesn’t hold, the next support is at $10k (green color).
On the other hand, we mentioned many times that a 100-day exponential moving average (white – currently at $20.5k) is crucial resistance. Before the last drop, its level was tested at $21k. The Bitcoin price was denied at that level, which confirmed the trendline as a reliable trendsetter in the previous months.
In October, Crypto Total Market Cap gained 7.3%, but the long term crypto market trend was still negative, year to date return is standing at – 55,5%
We still recommend investors stay defensive and wait for more signs that we reached the bottom or at least a period of accumulation. Until Bitcoin price exceeds long-term moving averages (red and white in the chart) and those averages start turning the curve upside, there is no favorable risk/reward ratio.
DISCLAIMER: This article is for informational and discussion purposes only and does not constitute a marketing message, an investment survey, an investment recommendation, or investment advice. The article was prepared exclusively for a better understanding of market dynamics.
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