Bitcoin Seasonality- Sell in November and Come Back in February
Bitcoin is a cyclical investment. It is classified as a commodity, and in turn, it operates as such. November is a good month for Bitcoin, then there is a historical sell-off in Q4-Q1 of the following year. Trading volume picks back up in the Spring and Summer, and the volatile asset repeats the pattern. What does this quarter hold for Bitcoin? More of the same? Or does the future hold wildcards for the king of cryptocurrency?
In the short-term, Bitcoin's chart looks bearish. Last weekend's China support boosted the cryptocurrency 15%, and averted an ugly chart with lower resistance at $7,500. This chart has not been fully shook off, and the current sideways trading looks bearish in the short term. The upper resistance level is $10,000 and lower resistance is at $8,500. The trend line is looking bearish, and we will likely see some retracement.
We are 6-months from the rewards halving, a major historical catalyst that last occurred in 2016. Six-month after the last halving, we saw the bullish 2016-2017 cycle. This is likely in the cards for Bitcoin.
Hold on tight if you're holding Bitcoin. We will likely see a small downturn that leads to a November pump. Sell in the last week of November to solidify your gains, and wait until mid-Februrary for the halving pump. This should be good, and if history serves, we could end up at ATH for Bitcoin, followed by an altcoin season a quarter later.
Sources:
Picture from Pixabay.
https://coinmarketcap.com/
https://www-bloomberg-com.cdn.ampproject.org/v/s/www.bloomberg.com/amp/news/articles/2019-11-05/bitcoin-enters-selling-trend-as-10-000-level-serves-as-barrier?amp_js_v=a2&_gsa=1&usqp=mq331AQCKAE%3D#aoh=15729835810821&referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s&share=https%3A%2F%2Fwww.bloomberg.com%2Fnews%2Farticles%2F2019-11-05%2Fbitcoin-enters-selling-trend-as-10-000-level-serves-as-barrier
