Over the weekend, many traders noticed that the Bitcoin price (BTC) broke the equivalent uptrend that started in September. Technical analysts are bracing for a pullback as the dominant cryptocurrency awaits consolidation.
Bitcoin could still see a strong rally from the end of the week if the rally continues. However, this will require a quick entry into the plate, otherwise there is a risk of a possible downward correction.
Traders are specifying that $ 15,500 is the key level to maintain the bullish move.
Since the start of September, Bitcoin has grown steadily without major changes. Overall, during bullish trends, bitcoin has historically declined by 20-30%. There is a possibility that a significant drawdown will occur if BTC fails to re-enter the plate.
According to the 12-hour bitcoin price chart published by a trader under the pseudonym Altcoin Psycho, the 2-month equivalent increase in BTC has now expired.
The trend does not necessarily indicate a deep correction in a BTC store in the near future. Instead, it simply means that as the markets cool down, a trend can emerge.
For example, longtime technical analyst John Bollinger said that Bitcoin is likely to decline or consolidate. Given that BTC is at the top of the Bollinger Bands, BTC is in the overbought zone.
But there is always the possibility that BTC will see a stronger rally in the short term with a different technical structure.
A breakout of the equivalent trend simply means the emergence of a new market structure. Whether this will signal the emergence of a downtrend or a broader meeting remains to be seen.
For the foreseeable future, Michael Van de Pope, a full-time trader on the Amsterdam Stock Exchange, said the key would be $ 15,500. He said if Bitcoin drops below this level, a major correction is possible. he wrote:
“The market as a whole is at a crossroads. It broke below $ 15,500, and I think we will see a correction in the bitcoin markets to $ 13,000 or less.”
Technical analysts tend to be cautious about expecting a clear direction in the short term due to the uncertainty in the market. Chances are high that BTC will steadily rise or fall drastically in value.
However, if the bitcoin price falls below $ 15,500, that means that the probability of BTC testing lower support levels is high.
In the weekly chart, the two most important short-term moving averages (MAs) are $ 13.967 and $ 12,390. Although the weekly chart should not return to a moving average, there have been instances in previous bullish sessions where the weekly chart has tested lower moving averages. one more time.
Variable – whales selling bitcoin.
Since November 10, the Gemini Stock Exchange has recorded unusually high deposits. This usually indicates that the whales are selling the stake for a profit.
An analyst under a pseudonym known as Blackbeard reported on November 10 that an unusually large amount of BTC had been transferred to Gemini wallets, citing CryptoQuant data on the network.
On November 15th, as reported in Cointelegraph, Gemini deposits jumped again, which could lead to an increase in pressure from sellers in the short term.
For the foreseeable future, if BTC struggles to recover, sales pressure from whales and miners will remain important variables.