November 8 Crypto Market Drop

Crypto News– The Bitcoin (BTC) price recently broke free from its established pattern, even as the total cryptocurrency market capitalization (TOTALCAP) saw a decline. Simultaneously, there was a noteworthy rejection at a horizontal resistance level for BLUR. Notably, TOTALCAP has been trading within the confines of an ascending wedge pattern since October 23.

November 8 Crypto Market Drop

Typically, an ascending wedge is regarded as a bearish pattern, suggesting that a potential breakdown from this pattern is the most likely future price scenario. Presently, TOTALCAP finds itself in proximity to the wedge’s resistance trendline, following an unsuccessful breakout attempt made yesterday, as indicated by the red icon.

A notable observation is the disparity between price action and the Relative Strength Index (RSI). While the price action points to a bearish pattern, the RSI tells a different story, appearing bullish. The RSI serves as a momentum indicator, offering valuable insights to traders about whether a market is overbought or oversold, helping them decide whether to accumulate or sell a particular asset.

When the RSI reading is above 50 and the trend is upward, it tends to favor the bulls. Conversely, if the reading falls below 50, the opposite holds true.

Bitcoin Escapes Triangle Pattern

On November 2, the price of Bitcoin (BTC) achieved a new yearly high at $35,984, but a subsequent decline followed. This decline led to a deviation above the $35,200 resistance zone and brought the price back to an ascending support trendline.

Notably, the price rebounded at the trendline, as indicated by the green icon, and then broke out from the $35,200 area, coming close to establishing a fresh yearly high.

The interplay between this trendline and the resistance area forms an ascending triangle, a pattern typically associated with bullish trends. This bullish price movement finds support in the behavior of the Relative Strength Index (RSI), which has broken free from its bearish divergence trendline.

Should a breakout encompass the entire height of the pattern, it could potentially propel BTC to the $38,000 mark, representing a 7% increase from its current price. This development signifies an optimistic scenario for Bitcoin traders and investors.