November Rains Red For Bitcoin Holders

Bitcoin’s price has fallen by more than 15% since the record was set earlier in this month.

Could the short-term crypto bloodbath of November be just the last shakeout before the peak cycle? Could past cycles offer a glimpse of this type of situation? Let’s take a closer look.

A November Selloff Places At Risk The Four-Year Cycle Theory

The past is often repeated. Also, markets are highly cyclical in the way they behave. Each cycle contains matching harmonics, which appear to rhyme but don’t have any reason.

That’s why price action often produces fractals that appear to match patterns from the past. Technical analysis can be described as the examination of past chart performance in order to predict future results.

Read More: Ten Bullish Monthly Bitcoin Price charts to start November| 10 Bullish Monthly Bitcoin Price Charts To Start November

But a current example playing out in Bitcoin price could prove once and for all if there is real weight to the four-year cycle theory based on the cryptocurrency’s hard-coded halving event.


Could November 2017 be an indication of the future in 2021?Source: BTCUSD at  | Source: BTCUSD on

Bitcoin to Follow 2017 Finale Fractal.

This chart shows a comparison of current Bitcoin price action with the Relative Strength Index. Bullish divergence is expected to confirm and extend the building parabola if crypto market capital leader Bitcoin can maintain this level and bounce back to its previous highs.

What’s striking about this setup, is that there is only four days difference between when this same behavior appeared just four years ago. Both times after making new highs, Bitcoin saw a mid-November correction – but what comes next then? Do price actions follow the same fractal, ending in dramatic December?

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The monthly technical picture was bullish despite recent downturns. It could continue to be so. The market was too excited about new highs for the month, leading to excess leverage. It was just cleaned, rinsed and repeated.

Sentiment has also since swiftly switched, which could draw in enough short positions for a final squeeze higher – much like the abundance of longs led the market back to $60,000. In just 30 days, the market saw its ultimate peak and a price appreciation of 250%. Is the chart above a chilling preview of what’s to come?

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