Bitcoin lost nearly half its value since the start of November and the bear market continues, however there are some bullish technical s on the charts, let’s have a look at Bitcoin versus the US Dollar.
I will take a purely technical view on the market like usual, as you can see we have completed 4 waves and possibly in the last wave now according to EW theory. The last wave can extend down more should the near term support around $3700 fail to hold.
Another bullish factor is the divergence between the momentum and the price action, higher risk traders usually look for these, and the success rate is not 100%, so it is wise to be prepared for another break to the bottom should we fail to see a breakout from the divergence.
Should support fail on the near term I will look to $3500 and $3000 as the next levels of support. Resistance is currently strong at $4000 and I will wait for consolidation above this zone before considering going long on the market. Safe trades.