The recent fall of Bitcoin’s (BTC) price to 14-month lows has led cryptocurrency to the biggest ever yearly loss.
According to CoinDesk’s Bitcoin Price Index (BPI), the cryptocurrency, just three weeks ago was trading at $6,300 which is already a 54 percent year-to-date decrease. As at that time, the report from the dominant market was that losses would be trimmed by BTC in the last few weeks of 2018, considering that it has bottomed out around $6,000 in five months to October.
But, BTC on Nov. 14 witnessed a sharp decrease below the crucial 21-month exponential moving average (EMA) support, indicating a recovery of the sell-off from the record high of $20,000 hit last December. Due to that fact, there was a substantial decline in prices to 14-month lows below $3,500 on Nov. 25 before acquiring some stability.
It appears that a significant recovery from the present level before the end of the year is unlikely if the bears are still keeping the upper hand. Also, BTC seems to prepare to snap its three-year gaining streak with a 73 percent yearly price fall which happens to be its biggest on record.
According to technical indicators, the only previous yearly loss recorded by BTC was a 57 percent fall in 2014. This loss recorded this year would be the biggest on record as long as prices still stand below $5,959.
In the meantime, the technical indicators show that cryptocurrency may extend further loss before the end of the year.
- Unless bitcoin prices increase beyond $5,959, then it will witness its biggest annual price fall on record.
- A confirmation of short-term bullish reversal would only be possible beyond $4,400 (Nov. 29 high).