Bitcoin: Another Mini-Meltdown Appears Likely (Cryptocurrency:BTC-USD)

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SourceBitcoin (BTC-USD), as well as the blockchain enterprise sector in general, has become increasingly correlated with stocks in recent months. Due to the upcoming election, the lack of progress on the fiscal stimulus front, uncertainty about the state of the economy going forward, the likelihood of an increase in volatility, as well as other factors, things could get messy in the blockchain enterprise segment in the weeks ahead. Bitcoin: 1-Hour Chart Source: Binance.com We see that BTC is forming what appears to be another head and shoulders pattern, similar to the prior ones in the chart above. Furthermore, Bitcoin got rejected at the critical $11,800 resistance level recently and broke through support at $11,500. More recently BTC has been testing the $11,250 area of support and is dangerously close to breaking below this crucial level. If $11,250 gets penetrated, Bitcoin could melt down further below $11,000 and possibly retest $10,500, as well as $10,000 support levels next.
A Longer-Term Outlook Source Despite the possibility for short-term downside, we remain quite bullish on BTC and the overall digital asset segment long term. As the above chart illustrates, BTC moves in waves, and the top of each wave is substantially higher than the previous top. I see no …

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