Bitcoin’s drop to 13-month lows has likely put the cryptocurrency on the path to post its worst monthly loss of 2018.
The leading cryptocurrency is currently trading at roughly $4,700 – down roughly 26 percent from the monthly opening price of $6,320 – according to CoinDesk market data.
As of now, November is the second-worst month of 2018, the first being March with a 32 percent price drop. November, however, would take the top spot if prices find acceptance below $4,200, pushing the monthly loss above 32 percent.
Indeed, BTC could regain some poise in the next ten days, as the record low on the 14-day relative strength index (RSI) is signaling extreme oversold conditions. In that case, November may become the second-worst month of the year or may even slip lower. However, a monthly loss looks like a done deal as a rally all the way back to $6,320 is unlikely to happen in the near-term.
This is because the demand side pressures may have weakened significantly in the last few days.
Moreover, a significant majority was expecting BTC to end its prolonged period of consolidation with a bullish breakout. The cryptocurrency, however, fell below $6,000 – a level where prices had supposedly carved out a long-term bottom – trapping many on the wrong side of the market.
Bitcoin November performance
As seen above, BTC scored gains in November in the last six years, including a 53.8 percent gain last year that saw the 2017 bull run accelerating as 2018 approached. As the data indicates, that winning streak is on pace to end this year.
Disclosure: The author holds no cryptocurrency assets at the time of writing.
boat, sink image via Shutterstock;
Author: Omkar Godbole