Author: Yuval Gov
Since around April 2018, Bitcoin had been forming a bearish triangle, with a bottom around $5700 - $5800. Such triangles are very likely to break down. There is less chance that they will break up. But as 2018 months went on, and Bitcoin was attempting to break down the triangle four times, we warned just yesterday (BTC was ~$6200) that "the more times they are tested, support levels get weaken over time and will break at last."
So after more than two months, where Bitcoin had been traded at the tight range of $6200 - $6800 with very low trading volume, it finally happened, and once the range was breached down, it was a matter of hours to break down 2018 yearly low.
As expected and mentioned several times ( our price analysis from August 14): "Breaking down the $5700 - $5800 zone, will likely to create a massive washout to the $5000 - $5300 support area." The current low lies at $5324 Bitstamp.
Yesterday before the complete mess, we've published a bigger picture prediction. The bottom line is that Bitcoin will need to re-test lower numbers in order to turn back to being bullish.
And what about the cause? It might be related to the miner groups hash wars, but it was just about finding a trigger. The smell of a breakdown was here all the time.
11/15/2018 / 08:16:42 Source: cryptopotato