Is Bitcoin Entering The Final Stages Of This Pullback?
Compounding weakness won't last forever. Is Bitcoin finally on the cusp of seller capitulation?
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Is Bitcoin Falling Off A Cliff?
Over the past few weeks, Bitcoin has broken down from one Weekly level after another, Weekly Closing below each old support and setting up a bearish retest every single time.
The Weekly Close below $78,241 (blue) was very marginal, only barely continuing that series, but it was nonetheless enough to set up a bearish retest.
And that's exactly what followed in candle-bodied fashion, as despite quite a prolonged upside wick, price still formed a series of Lower Highs in the upside wicks to confirm the blue level as new resistance.
I've spoken about how turning either $78,241 or $76,795 (blue) into new resistance would be a bearish technical milestone.
In fact, every time Bitcoin Weekly Closed below $78,241 (first and second red circles), downside continuation followed over several weeks post bearish retest.
This time, Bitcoin hasn't just lost $78,241, but Weekly Closed below $76,795 too, implying even more weakness than back in May (second red circle).
Closing below both levels is a real sign of weakness.
After all, ~$76800 had been producing lesser and lesser rebounds, first a three-week rally from mid-September and then only a 5.5% bounce.
Bitcoin has now broken down from that support quite clearly, and any bearish retest would only confirm it.
The question is, though, does ~$76800 even need to be turned into resistance?
Previous breakdowns from here have been like falling off a cliff, with price simply not needing to revert into that level at all.
Bitcoin Keeps Losing Weekly Levels As Support
And it's not just the two blue levels that Bitcoin has lost as support.
Bitcoin has also Weekly Closed below ~$75000 (black) which corresponds to the downside wick that kickstarted the mid-September trend reversal to $87k.
In mid-September, downside wicking into ~$75000 enabled a move to $87k.
This November, Bitcoin has actually Weekly Closed below ~$75000 and is treating it as resistance for the moment.
That's a major psychological shift in market dynamics.
Once a strong rebounding zone, today acting more as a ceiling that a floor.
In fact, back in mid-September price downside wicked into $75k whereas now price is actually here in candle-bodied format; evidence of a pronounced shift in buy-side aggression.