What will help reverse Bitcoin after falling below $ 60,000?
The past week has been nothing more than a roller coaster ride for Bitcoin, hitting another ATH, peaking at $ 69,000. However, as the market is currently consolidating, the majority of participants appear to be benefiting as BTC finds new lower support.
However, with the Taproot upgrade enabled, Bitcoin’s long-term prospects seem blurry. While the price is down 2.5% in 24 hours at the time of writing and 12% down from last week, it is difficult to predict what will happen next.
Buying pressure disappears
The BTC on-chain accumulation indicator shows addresses that have not accumulated any coins in the last month. Therefore there does not seem to be any pressure to buy at the moment.
The source: Ecoinometry
In particular, the trend mentioned above is not ideal to support the rally. On top of that, BTC is still leaving the exchanges pretty quickly. In the last month alone, 100,000 BTC were transferred from a known stock exchange address to a Hodler address. It appears that the history of the supply shock is still intact.
At the same time, the reserve risk metric (which tracks the risk / reward ratio that shows the confidence of long-term owners) remains very promising for the crypto king. With a clear accumulation trend in the last 6 months, the reserve risk is currently at an impressively low level. Although the recent bullish CDD (Coins Destroyed) indicator is resuming an uptrend, there is still plenty of room for growth.
Reserve risk | The source: Glass knot
Interestingly, this slowing accumulation trend doesn’t necessarily signal an actual decline in prices, as it did late last year. It is noteworthy that the price of BTC has increased by 100% in the past 2 months, although the rate of accumulation is slowing down.
Accumulation trend | The source: Econometrics
As the accumulation slows down, it will have to be rebuilt for the next stage of BTC. However, the average Bitcoin price target for December 8th remains at $ 84,000, according to Ecoinometrics. In addition, next week will continue to steer the top coin movement.
That being said, another reassurance is that the Miner Position Index (MPI) is in what has historically coincided with a bear market. The miners did not take their profits as much as they did in previous bull markets. In fact, they expect higher prices – which is a good sign.
For now, however, BTC is rebounding from $ 60,659, but if $ 60,000 is lost, the next support is at $ 58,443, which coincides with the 55 daily EMA.
Bitcoin repeats past rallies
The entire crypto market was in the red at the time of going to press. However, the “strong hand” remained with HODL.
Analyst TechDev believes Bitcoin could repeat past rallies and be on the verge of a massive rally.
The source: TechDev
As you can see, BTC currently has the same structure as it did at the end of 2020, at which point the token consolidated below the $ 20,000 mark before skyrocketing to $ 64,000.
“The last time in this cycle, BTC tried to break the ATH on the weekly chart … It consolidated for 3-4 weeks with the Stoch RSI raging as high as possible before breaking sharply higher. The bearish mood is comforting, but confusing. ”
The increased liquidation of BTC doesn’t make entirely sense. To further substantiate the above story, the analyst compared Bitcoin charts from 2013, 2017, and 2021.
The source: TechDev
BTC rebounded above the 161.8% Fibonacci expansion – a level of historic importance (marked in the graph above). During the 2013 and 2017 bull cycles, Bitcoin set off parabolic rallies that crossed it. This explains his optimistic forecast despite the current gloomy situation.
“Are you ready for what’s to come? Personally, I bet Bitcoin won’t be any different this time. ”
However, there are still some obstacles here. The analyst identified four separate 2 week indicators on four BTC bulls to indicate “time to decline”.
You’ll see me get bearish #BTC as these 2 week indicators are approaching their critical zones.
If you turn around earlier that’s fine, it just has to be in opposition to all of these.
Anyone with respect and a data-driven thesis deserves respect for themselves. pic.twitter.com/VKtCBuUPap
– TechDev (@ TechDev_52) November 14, 2021
“You will see me pessimistic about BTC as these 2 week indicators near their key areas. If what’s okay to topple sooner, it has to be the opposite of all of that. An argument backed up with data deserves respect. “
Although the potential volatility for BTC or other tokens is nothing new, the bullish bias is still very strong. The optimism of the top coins remains good, even if the “cleanup” of the positions on the derivatives exchanges is nearing completion.
This shows the possibility of a price recovery.
All in all, BTC could have an interesting week. This leads to 2 possible scenarios after the recent rejection caused the price to drop at $ 66,000. In particular, it could find its way back to the $ 63,000 mark or see a faster and early decline to $ 54,000.
Either way, the powerful HODLer remains intrepid as it continues to buy more BTC at a discounted price, according to Cointelegraph. Wu blockchain.
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According to AZCoin News