Bitcoin shed 40% of its value in November, time to recover?
|- BTC/USD is creeping towards the near-term resistance.
- The short-term technical setup points to an extended recovery.
Bitcoin managed to recover above $3,800 to trade at $3,830 by press time. However, the coin is still under $4,000, which is deemed critical for the short-term recovery. The current market setup implies some range-bound trading before another significant breakthrough.
In a longer-term scheme of things, Bitcoin has lost over 40% in November and over 70% since the start of the year. The largest digital coin has been falling four months in succession as November draws to a close and there is little doubt that its candlestick will have a red color. This is the longest bearish streak since the rout of 2014, though the scale of the collapse is much more impressive now.
Bitcoin's technical picture
From the short-term point of view, BTC/USD has a chance to extend its nascent recovery. The price stays above SMA50 (1-hour) $,3,773, which serves as the nearest support level. A sustainable movement above SMA100 ($3,884) will open up the way towards $4,000 and SMA200 at $4,156. Both RSI and momentum indicators point upwards, increasing the chance for an extended recovery.
On the downside, if the above-said support at $,3,773 gives in, the sell-off may gain traction and take the price to $3,600 and Tuesday's low at $3,559.
BTC/USD, 1-hour chart
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