After a tough red weekend, Bitcoin is still struggling to find a clear short-term trend with the price hovering around the $7,000 mark. However, several momentum indicators signal better times for the bulls ahead, as Bloomberg noticed yesterday, November 26, 2019.
Indeed, the Relative Strength Index (RSI) made a U-turn yesterday and is now just over 30, in an attempt to gain momentum. Stochastic is another indicator that clearly showed oversold conditions yesterday (under 20) before turning upwards. Stochastic compares the closing price to a range of prices over a period of time (by default 14 trading sessions). When the two lines intersect, it is a sign of reversal of the current ongoing trend.
On the other hand, the trend-following histogram Moving Average Convergence Divergence (MACD) is still playing the waiting game which could actually signal caution before buying the dip. The two lines in MACD are in fact exponential moving averages (EMAs) one fast (takes into account the last 12 trading sessions by default), and one slow (26 trading sessions). Like with stochastic, the intersection of those two lines could mean a change of perspective.
Black November For Bitcoin
Thus far, November turned out to be a black month for the whole cryptocurrency market.
In November alone, Bitcoin’s price dropped almost 23% which is the worst-performing month of the year 2019, up to date, as per Bloomberg data.
Back in July, Bitcoin dropped around 18% after an exciting three-month rally.
Nevertheless, November 2019 is still way behind some of the worst months Bitcoin had in the last several years. 12 months ago, in November 2018, Bitcoin set a record of the worst performing month with an almost 40% dump. Before that, January & March 2018 got past the 30% levels in terms of price devaluation against the US Dollar.
Will Bitcoin rally to end the month of November? Did you buy the dip this weekend? Tell us more about your trading views in the comment section below!
Images courtesy of Coinigy & Bloomberg.