Bitcoin Today- Headed into it's Historically Best Performing Month Firing on all Cylinders
Bitcoin has arrived at its historically best trading month, November, after a volatile year and with strong headwinds in its sails. Bitcoin is going to outperform in Q4 2019 and in Q1 2020. Let's look at historical trends and current headwinds.
Bitcoin currently stands at $9,300 and is up over 15% since last weekend's Chinese support announcement by Xi Jinping. The list of cryptocurrencies endorsed by China, banning of anti-cryptocurrency statements and upcoming halving are all great news for the market. The media is running with positive stories.
Bitcoin's dominance stands at 67.4%, which is a decrease of about 1% since last week. Large blue-chip cryptocurrencies found support with the Chinese support list and Jinping's endorsement. Tron and Neocoin benefitted from the announcement, as both are major Chinese projects. I was pleased to see Justin Sun's Tron enter the top 10 cryptocurrencies by marketcap list. I have repeatedly endorsed Tron, and grew my position when it was between $0.015-$0.019. Still holding.
November has been Bitcoin's best month historically. We need to remember that December and January are selloff periods for Bitcoin, in which people around the world sell assets for holiday celebrations. Bitcoin will pickup speed this month, and drop during the holidays. Expect to see $7,500 as a seasonal bearish trend establishes itself. In a way, Bitcoin is like the real estate market.
The rewards halving for Bitcoin miners is set for May of 2020. This is the organic catalyst for Bitcoin's price we are looking forward to. The deflationary aspect of Bitcoin and the reduced supply with increasing demand are great news for Bitcoin bulls. Great news 6-month away. The last bullish cycle began 6-months after the 2016 halving. Historically, Bitcoin has surged 6-months before halving as miners and investors prepare. Get ready to pop bottles, fellow holders.
Beware leveraged traders who will take profits this coming week. Traders understand Bitcoin's seasonality, and should start selling in last November. Bitcoin overcame its ugly chart last week due to the Chinese support, and traders likely profited if they were long. Short-sellers were caught off guard, and needed to buy to cover. Keep in mind former shorts need to make some profit to keep in the green and are likely on the buy-side of the equation. Bitcoin looks overbought here, will correct, and spike back up in February of 2020. Expect to see a major bullish trendline 2-months before the halving when the media picks up the story.
I am cautiously waiting for an entry point at around $8,400. The chart looks bearish on the technical end. Good luck, and make sure to check out some altcoin deals in December.
Sources:
Picture from Pixabay.
https://coinmarketcap.com/currencies/bitcoin/
https://www-independent-co-uk.cdn.ampproject.org/v/s/www.independent.co.uk/life-style/gadgets-and-tech/news/china-cryptocurrency-blockchain-bitcoin-a9176636.html?amp_js_v=a2&_gsa=1&&usqp=mq331AQCKAE%3D#aoh=15727254790940&referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s
https://www-coindesk-com.cdn.ampproject.org/v/s/www.coindesk.com/bitcoin-may-see-november-price-boost-with-halving-due-in-six-months?amp_js_v=a2&_gsa=1&&usqp=mq331AQCKAE%3D#aoh=15727256775568&referrer=https%3A%2F%2Fwww.google.com&_tf=From%20%251%24s&share=https%3A%2F%2Fwww.coindesk.com%2Fbitcoin-may-see-november-price-boost-with-halving-due-in-six-months
