During the weekend many traders reported that the price of bitcoin (BTC) had broken its parabolic uptrend which was back by September. Technical analysts are hanging on for a pullback as leading cryptocurrency eyes consolidate.
If the rally continues, bitcoin may see a strong recovery even after the weekly shutdown. But it would need to quickly re-enter the parabola or risk a possible downward correction.
Merchants fined $ 15,500 as head level for maintaining bull run
Since early September, bitcoin has continued railing without major reforms. Typically, during bull trends, BTC historically saw a 20% to 30% drop. There is a possibility that a major flaw may occur if BTC fails to retrieve the parabola.
According to the 12-hour bitcoin price chart shared by the pseudonymous merchant “Altcoin Psych”, BTC is now out of 2-month parabolic advances.
The trend does not necessarily imply that BTC will see a deep improvement in the near term. Rather, it simply implies that a trend can become a trend as the market cools.
For example, longtime technical analyst John Bollinger What was said There is a possibility of pulling back or consolidating that BTC. Assuming that BTC is hovering over the top of the Bollinger band, BTC is hovering over the backward region.
But, there is always a possibility that BTC may see a strong rally in the near term in a different technical structure.
The breakdown of the parabolic uptrend only indicates that a new market structure will emerge. Does this mean that a downtrend will emerge or a widespread rally will occur.
In the foreseeable future, full-time trader Michael van de Popay on the Amsterdam Stock Exchange said $ 15,500 is the key. He said that if BTC goes under it, a major improvement is possible. He wrote:
“The market is in the crossroads of direction in general. Breaking below $ 15,500 and I think we will see an improvement in markets with $ 13,000 or less BTC. “
Technical analysts are generally cautious in predicting a clear short-term direction due to market uncertainty. There is a strong possibility that BTC may either continuously move upwards or see a major price drop.
If bitcoin goes below $ 15,500, it would mean that BTC testing is more likely to have lower support levels.
On the weekly chart, two major short-term moving averages (MAs) are found at $ 13,967 and $ 12,390. Although the weekly chart does not have a retreat for MA, in previous bull cycles, there were instances where the weekly chart retires the lower MA.
The whale that sells the variable BTC is
From 10 November onwards, the Gemini exchange recorded an unusually high deposit. This usually indicates that whales are moving to sell their holdings to take profits.
A pseudo-analyst known as “Blackbird” What was said An unusually high amount of BTC has been transferred to Gemini on November 10, citing cryptocurrency’s on-chain data.
On November 15, as Cointegraf reported, Gemini deposits rose again, which could lead to higher selling pressures in the near term.
In the near future, if BTC struggles to recover, sales pressure from whales and miners will remain as important variables.