Further to my last post of October 20 and update of November 2, a bearish "Shooting Star" candle formation is in the making on this Monthly chart of BITCOIN...warning signs that we could see a further sell-off to, potentially, the 5000 level, which is the nearest major support level, or even lower to 3000, the next major support level (last hit on September 15).
Volatility is no stranger to this cryptocurrency, as price has plunged nearly 1700 points in the past four trading days, and I doubt that this will change any time soon. Price is currently trading at 6200 as I write this post on November 11 at 1:45 pm ET.
Both the Momentum and Rate-of-change technical indicators on the Daily chart below are hinting of lower prices to come.
As an example of volatility and parabolic moves, look no further than the graph below, which depicts the percentages gained Year-to-date on the SPX, the five FAANG stocks, and BITCOIN. The percentage gained in 2017 in BITCOIN is 2.5 times that of all five FAANG stocks combined.
* UPDATE November 12...
Volatility continues its grip as price hit a low of 5426 in the wee hours at 1:50 am ET today (as shown on the Daily chart below)...a 2469-point (32%) drop from its high five days ago...
