Cryptos falls again after its worst November in years

Chris L
Category:  Financial News
Mayor cryptocurrencies are posting gains on Tuesday as investors bought Bitcoin and other altcoins following Monday's decline. However, the general picture is negative after Bitcoin posted its worst November in nearly seven years.

Most traders watched last week positive performance as a signal of a possible recovery in the crypto market, but the move was a natural rebalancing and profit taking behaviour at the end of the month.

When talking about rebalancing and profit taking, experts say it is when traders closed trades to put money back into their books. It usually occurs at the end of a period of time, let's say a week or a month, like this time. Everybody wants to have profits in his or her pocket, so do traders.

Bitcoin: Will be December a tale of the same story of November?

Bitcoin lost more than 35% in the last month, logging its worst November since 2011 as the pair opened the month at $$6,304.18 the day one, to lost $2,328.18 in value before closing the month at $3,976.00 on the day 30.

It was a huge drop that takes the pair to its lowest level since September 2017, however, more concerning was that Bitcoin broke below the $6,000 structural support and it went all the way down with no hesitation.

November was the fourth negative month in a row with BTC/USD losing almost half of its price in just four months. Technical conditions point to more declines in the middle term.

"It is important to remember that the crypto-sphere is still scarred by the hard fork in Bitcoin Cash. The 'hash wars' do not top the talk in blockchain world, but they still weigh on the price," said FXStreet analyst Yohay Elam in a recent article.

"And," Elam adds, "markets are still awaiting an Exchange Traded Fund (ETF) for Bitcoin. An ETF is critical to attracting mainstream funds to the cryptocurrencies."

So, what will happen in December? For now, Bitcoin performed a neutral weekend, an ugly Monday and a Turnaround Tuesday.

Usually, December has been a good month for Bitcoin, a 40% gain in 2017 and a 59% jump in 2011. BTC/USD has performed three good Decembers in a row, but the odds are now negative.

Ethereum falls for the seventh month in a row

Ethereum closed November negatively as it logged its seventh consecutive month with declines. ETH/USD lost $85 of value from $196.95 to close at $111.65, 43% below its opening price.

ETH/USD is trading in a 25 dollar range between $100 and $125 since November 23. All in consolidation mode, however, technical conditions are signalling for more drops. Moving averages are pointing to the south while studies remain neutral.
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