Bitcoin enters a volatile week in bad shape. It started the week with a drop of 2.5%. This could continue, eventually driving its price towards $12,000.
Bitcoin records a 20% decline this month
We are currently approaching the end of November. A month marked by several events for the crypto-sphere. Indeed, bitcoin has recorded a 20% decline in value so far this month, and more than 76% since its all-time high. However, this could continue as the long-term structure remains bearish.
The first crypto by market capitalization started today’s session with a drop of x%. Bitcoin thus starts the week in bad shape, as the markets prepare for a volatile week. Indeed, two important economic news are at the rendezvous on the economic calendar. These are the creation of jobs in the non-farm sector (NFP), and the unemployment rate. The NFP is expected to decrease to 200k from 261k for last month. As for unemployment rates, this should stagnate at 3.7% according to forecasts. If the data aligns with these forecasts, we can consider further downside for bitcoin.
On the way to $12,000?
Based on the structure of the daily chart, one could envisage a decline in Bitcoin towards $12,000. Indeed, the bankruptcy of FTX caused a 24.5% drop in BTC. And with this explosive move down, the price broke the support at $18,500. This demonstrates the strength of the bearish pressure that is dominating on BTC. At this rate, we can envisage a drop in bitcoin towards $12,000. For this, there are two fairly probable scenarios.
First, one might expect a corrective move towards $20,077, before the drop. Indeed, this is a critical resistance, as this level lines up with 23.6% of the move from $21,440 to $15,663. But not only that, it is also a resistance near the opening price of November, and a quite relevant offer zone. Second, one can also envision an immediate drop in bitcoin towards $12,000, with no corrective movement.
However, nothing is sure and these are only theses. If the price comes to cross the psychological resistance than $20,000, we can consider a rise towards $28,000.
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