Bitcoin Top Price Prediction: This pattern explains why BTC/USD can break below $3,000 on November 29th
- Bitcoin is sliding once again after a failed attempt to recapture $4,000.
- Looking at the recent behavior BTC/USD, the next fall will be on Thursday, November 29th.
Bitcoin made a recovery attempt following the news that the US state of Ohio will accept the digital currency in 23 different types of business taxes. This is a considerable mainstream adoption of cryptocurrencies and good news, but it was good enough only for a few hours. Also, some noted a short squeeze after the big fall, and yet again, it did not hold for too long.
BTC/USD crossed $4,000 but could not keep above the level. At the time of writing, it is trading just above $3,700, still above the fresh low of $3,456.
What's next?
It is hard to see any recovery unless the whales begin accumulating, as some speculate. According to the theory, whales that have accumulated Bitcoin outside the exchanges are dumping it on the market to trigger a broader sell and to push prices down. And after prices dropped sharply, they will accumulate some more and eventually push prices higher.
Bitcoin dropped by 40% in the recent crash and 80% from the peak in December 2018. It is trading at the lowest levels since September 2017. However, it is trading above levels seen in August 2017, and that is not a long time ago.
If the whales do not begin accumulating again, BTC/USD may resume its drops. And where to?
The pattern of crashes - every five days
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As the chart shows, The drop under $6,000 happened on Wednesday 14th.
The crash below $5,000 occurred on November 19th.
And the final fall (for now) took place on 24th.
As you can see, the losses of the round numbers happened five days apart.
Five days from the 24th is the 29th, which is on Thursday. The next round level is $3,000.
Will the pattern repeat itself? Nothing last forever but another iteration of such a clear pattern cannot be ruled out.
If the dumping theory is correct, the whales may strike again on Thursday and bring the price to the $2,000 handle.
We'll know soon enough.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
