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In this episode of NewsBTC’s daily crypto-technical analysis videos, we examine the past Bitcoin bear markets to see how much further we could go before there is a bottom.
Watch the video below:
VIDEO: Bitcoin Price Analysis (BTCUSD): November 9, 2022
Bitcoin price remains low after setting low now that support is finally broken.
Extensive flat corrective pattern continues to be completed
The market is clearly bearish, but then again we have what could be the last wave in an extended flat pattern. The push to new lows continues to fill what could be a major falling wedge pattern. But considering the price action and sentiment out there, considering a bullish theorem is challenging.
Bitcoin price is now at the 0.5 retracement using Fibonacci on log settings. But that’s not very reassuring. Given the expectations for the $14K and $13K area, Bitcoin’s price action will either stop close to that level, or cut right through it.
Has the corrective pattern completed? | Source: BTCUSD on TradingView.com
Worst-case scenario for Bitcoin Bear Market
In these following charts, the worst case scenario would involve filling a BTC CME gap below $10,000. Not only is there a confluence with diagonal uptrend support, but that’s about 85% retracement from the peak.
This is remarkable because during the bear market of 2018, BTC fell by 84% and in the bear market of 2015 by 86%. If you average those two samples, you get an average of 85% retracement.
Just as the top cryptocurrency peaked well below the ROI levels of previous bull runs, bear markets won’t see as much of a decline either. The idea is that Bitcoin’s volatility is disappearing over time.