Why Did Bitcoin Crash In 2017-2018?

Contents

Bitcoin crashes after unsuccessful attack on historic highs
CONTENT

  • Bitcoin rate broke through the line of parabolic upward support.

  • Technical indicators began to give bearish signals.

  • BTC made bearish breakout from short-term parallel bullish channel.

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On the night of November 26, the bitcoin rate launched a rapid decline, in a matter of hours sagging by almost $ 1,700.

Price made a bearish breakout from the current bullish price structure, which has been on the chart since September. Perhaps BTC has already started a correction.

Breakout of parabolic support

Since September 5, the bitcoin (BTC) rate has been moving along the line of parabolic upward support. Following along it, the park reached a high of $ 19,490 on November 25, just short of a record high of $ 19,666..

On November 26, the BTC rate formed a significant bearish candle, having made a bearish breakdown of the support line, and began a decline, which continues to this day.

After 36 days in the overbought zone and numerous bearish divergence signals, the daily RSI finally pushed below the 70 mark.

Bitcoin Crashed After Unsuccessful ...

In addition, the Stochastic Oscillator has formed a bearish crossover, and the MACD is also declining..

It looks like the pair has completed its growth phase.

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Schedule MTC. Source: TradingView

The continuation of the decline will bring into play two possible levels to complete the downward correction. These are $ 15,800 and $ 13,500 (Fibo levels 0.382 and 0.618 of the entire bullish move).

Another likely support could be the 0.5 Fibo level at $ 14.640. However, this is not an area of ​​horizontal support..

Schedule MTC. Source: TradingView

Short-term dynamics

On the 2-hour chart, bitcoin also made a bearish breakout from the parallel bullish channel that has been on the chart since September 18.

Near-term indicators are also giving bearish signals.

Bitcoin Crashed After Unsuccessful ...

RSI and MACD are declining, with the latter dipping below 50.

Schedule MTC. Source: TradingView

Conclusion

Thus, Bitcoin’s bearish breakout suggests that the market has begun a correction that could push the price towards $ 15,800.

You can read the previous Bitcoin forecast here.

Disclaimer: Cryptocurrency trading carries a high level of risk and is not suitable for all investors.

Bitcoin Crashed After Unsuccessful ...

The opinion expressed in this forecast does not reflect the opinion of the editorial staff of BeInCrypto.

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