As a seasoned crypto investor with a decade of experience under my belt, I find myself both excited and cautious about the current state of Bitcoin (BTC). Having witnessed numerous bull and bear runs, I can confidently say that BTC’s meteoric rise to nearly $100,000 is nothing short of astonishing. However, as CryptoQuant suggests, a healthy cooling could be imminent, with a potential correction to around $70,000.
Bitcoin (BTC) may face temporary obstacles as it journeys towards six figures, with potential setbacks like a dip approaching $70,000.
According to a recent update from the CryptoQuant on-chain analytics platform on November 16th, it’s suggested that the Bitcoin market might experience a period of “moderate price relaxation.
BTC price analysis considers “healthy cooling”
Bitcoin continues to circle $90,000 as week-to-date gains approach 13% into the weekly close.
According to BaroVirtual’s analysis as a contributor to CryptoQuant, there might be an upcoming period of consolidation for BTC/USD, with a possible downturn targeting roughly $70,000.
The reason, it argues, lies in two moving average (MA) trend lines, now nearly 20% apart.
According to the placement of the moving averages for the past 7 days and 30 days, it appears that there’s strong, vigorous demand for Bitcoin, suggesting a highly optimistic outlook,” the post explains.
“The issue is that the gap between the fast and slow chasers is 19%, and this, in turn, leads to 2 possible scenarios:1) Bitcoin takes a sideways position in the $87,000-$93,000 range for some time and then continues its upward movement to the $104,000-$120,000 range. We observed something similar from February to March 2024.2) Bitcoin corrects downwards to the $71,000-$77,000 range, and there is an intermediate healthy cooling of the market, and then the local upward trend resumes.”
A chart provided alongside offers perspective on Bitcoin’s price increase over the last week, showcasing a historic high of $9,000 achieved in a single day on November 11th.
To put it simply, CryptoQuant likened the current situation of bulls running out of energy to past instances when prices were approaching record highs. This means that the behavior we’re seeing now in the market is similar to what happened during those previous periods.
Bitcoin whales show no sign of selling
It’s not surprising to hear speculation suggesting that the current upward trend in cryptocurrency prices might level off before reaching $100,000, given previous discussions about this topic.
Some view this as an eagerly anticipated test of recently established support zones, whereas pessimistic outlooks foresee a potential drop in Bitcoin’s value to $50,000 or even below.
Despite the data from CryptoQuant suggesting otherwise, it appears that investors’ confidence remains robust at present levels, as whales across the board are amassing holdings during these new record highs.
It’s worth mentioning that there’s been a significant surge in the number of new whales, suggesting a possible increase in their creation over the past period.
“Even with BTC around 90k, they haven’t stopped accumulating, and most are holding, which is a sign of confidence in the market.”
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2024-11-17 17:33