As Bitcoin hits a 14-month low it is on track to experience it’s biggest ever yearly loss.
Only three weeks ago Bitcoin was trading at $6,300 which was already a 54 percent year-to-date loss. Most believed we had reached the bottom and the price had stabilized.
However, on Nov. 14, Bitcoin took a nosedive to below the crucial 21-month exponential moving average (EMA) support. This signal[ed a resumption of the sell-off from the record highs of $20,000 it reached last December. Prices have now dropped to 14-month lows with a sub $3,500 valuation on Nov. 25 before regaining some ground.
The bears still appear to have the upper hand and a significant recovery from current levels appears unlikely before year’s end. Bitcoin looks set to snap its three-year winning streak with a 73 percent annual price drop – the biggest so far.
Bitcoins previous annual loss was a 57 percent drop in 2014. This year’s loss would be the biggest on record as long as prices hold below $5,959.
Technical analysis indicates that the cryptocurrency may suffer further losses before the year’s end. Bitcoin risks re-testing the recent low of $3.474 in the next few days.
It appears Bitcoin will suffer its biggest annual price drop on record. This will only change if the price rises above $5,959.
A short-term bullish reversal would be confirmed only above $4,400 its Nov. 29 high.