Bitcoin begins correction phase below the $17,000 price range, resuming the bearish downtrend from a day ago. The traders now have mixed emotions about the weak short-term momentum but let’s see more in today’s BTC price analysis.
Some traders believe that BTC will drop to $16,000 or to $13,800. The chances of a drop to the $13,000 region are still low but that level is the previous one when the asset peaked in June 2019. Traders are turning cautious in the short-term because of the BTC trend that was seen overnight. On November 26, the overleveraged longs in the futures market were liquidated which caused major shockwaves on the market and caused BTC and other major crypto assets like ETH to plunge.
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The trader is known as “Cred” wrote:
“Bunch of leveraged longs got crushed overnight as indicated by the drastic reduction in open interest. Levels aren’t great up here, but I’m willing to punt a dip buy at weekly structure/through previous week’s low i.e. under $16k. If that ain’t it I’ll assume $13.8k.”
The drop in the price of BTC was necessary for the derivatives market to get neutralized but the funding rate of BTC before the correction was a very unsustainable level as bitcoin begins correction phase. Despite the technical strength of Bitcoin, the rally hit a point where it was quite hard to short-sell BTC and there was also strong liquidity in the $16,000 region, making it a strong support area. In the short-term, the traders expected BTC to face a large drop or to hit a weak momentum phase. However, the abrupt trend reversal became less likely because of the sharp drop in the futures markets’ open interest.
This means that the $13,800 level makes it less likely to reach a bottom support level with $15,000 and $16,000 as immediate support levels in the middle. The traders said that reclaiming the $17,500 and $17,700 resistance range could pose as a safe place for BTC in the foreseeable future. The trader known as “salsa Tekila said”
“I have green light to buy $BTC dips if we go back above 17.5k.”
Technically, if BTC hits the resistance range and rejects once again, there’s a chance for a bearish continuation in the near-term.
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