• Bitcoin plunged again during the trading session on Wednesday as we continue to see a lot of selling pressure.
• All things being equal, this is a market that is going to test the hammer from the previous session, which suggested that we might try to turn things around as we formed a hammer, but now it looks like we are doing everything we can to break down through the bottom of that hammer.
   

(Click on image to enlarge)

Breaking through the bottom of that hammer opens up a move down to the $83,000 level, an area that previously had been resistant, and you should see a certain amount of market memory in that area. With that, I suspect that you are going to see a situation where the market has to pick itself up pretty quickly, or things could get rather ugly. Quite frankly, Bitcoin has fallen off of a cliff over the last several weeks, and this continues to be a situation where liquidation is a major factor in what is going on here. On the charts, you can see that since the early part of October, volume has picked up and pricing has been horrific.
 

Turning Around Won’t Be Easy

I don’t see this as an easy turnaround. Now we find ourselves selling off pretty drastically over the last couple of months, and from the peak, we are now down about 30%. That is a significant loss that institutions will not want to wear. Because of this, the bearish market in Bitcoin might be a bit different what it has been in the past. We will have to wait and see. The institutional adoption, of course, is a big deal, but we are rapidly approaching where all of that is but a distant memory. We are already negative for the year, and in this environment, it looks like we could very well continue to drop from here. We will just have to wait and see.

I look at this as a market that, if the $84,000 level gives way, could be looking at $75,000—a level that was not even considered just a couple of weeks ago.

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