It's been quite a while since my last Bitcoin update so I figured I had better find time to at least do a quick one. Between working for Frontier Mining and writing for Benzinga I have been staying very busy. But that is a good thing!
Bitcoin Daily Chart From Nov. 15th @ 7:30 AM
Looking at the Bitcoin daily chart from yesterday morning you can see that Bitcoin was in the process of once again forming a rising wedge pattern. It looks like a smaller version of the rising wedge from this spring. Unfortunately, rising wedge patterns are bearish and usually result in the price breaking down out of the pattern and heading lower. This doesn't necessarily mean that Bitcoin is going to experience a pullback similar to the one in May. It could end up just being a smaller pullback into the mid $50K region.
Bitcoin Daily Chart2
Looking at this updated daily chart from this morning Nov. 16th, you can see that Bitcoin has indeed broken down out of the pattern and bounced off of the 50 EMA. The question now is; Will BTC bounce from here and head higher or does it have further to fall?
Bitcoin Weekly Chart
Looking at the weekly chart you can see how extended the price was before this week's candle. You can also see that in the past anytime the price extends too far above the 9 EMA it corrects back closer to the 9 EMA. So this pullback is not surprising, there is fairly strong support from about $55k up to $58k. It is also possible that since BTC has pulled back and touched the weekly 9 EMA that the price could just start moving higher again from here.
I want to end by saying that the last 12 months have been crazy. A huge run higher from the middle of October 2020 thru April (over 500%) that peaked at about $65k followed by a 55% correction. Then another impressive run higher from July 21st (over 135%) that peaked November 10th at 69K. Where the price of BTC goes from here is anyone's guess, but what I am sure of is I am not ready for it to end!