Bitcoin

3 reasons traders expect Bitcoin price to drop to $ 13,000 before a new rally

Bitcoin (BTC) price consolidated from $ 19,400 to over $ 17,000 on November 28th after a significant correction. In the short term, traders expect the dominant cryptocurrency to suffer another significant setback.

There are three main reasons why traders expect a deeper decline in the near future, namely the historical cycles, the Fibonacci sequence and the open interest record of the futures market.

According to Coinmarketcap, Bitcoin’s market capitalization is currently $ 319,611,972,144.

4-hour chart for the BTC / USDT pair (Binance). Source: TradingView.com

Historical cycles suggest a deeper Btcoin price correction

3 reasons traders expect Bitcoin price to drop to $ 13,000 before a new rally
3 reasons traders expect Bitcoin price to drop to $ 13,000 before a new rally

The price of Bitcoin has often dropped between 20% and 30% in recent bull marketsHow it was when it hit nearly $ 20,000 in 2017. Although the rally continued thereafter, there were large corrections as the derivatives market saturated.

Several traders are now saying that Bitcoin price should be in the range of $ 13,800 to $ 14,500 when a similar pattern occurs.

Additionally, some technical analysts are considering the worst-case scenario in which Bitcoin price is falling to the maximum it had when it rebounded in August 2020. That would set the price of Bitcoin at about $ 12,468.

$ BTC

Crypto Twitter will hate me for that …

I firmly believe we will reach $ 13,000.

A trader whose pseudonym is known as “Tekila Sauce” said the technical landscape for Bitcoin is relatively straightforward.

If the price of Bitcoin breaks above $ 17,500 and stays above, the trend will turn bullish again. However, if the price of Bitcoin stays below $ 17,500, a drop to the $ 11,000-13,000 range shouldn’t be unexpected. The dealer wrote::

“My view on $ BTC: 1) Pessimistic below the $ 17,500 area. 2) Bullish if it breaks $ 17,500. In which case we will buy at the lows. 3) $ 18,700 area = only big resistance before the all-time high (IT IS POSSIBLE I could see [$11-$13,000]. I wouldn’t keep the network above $ 14,500. “

The Fibonacci sequence

As previously reported by Cointelegraph,s Traders signal the 0.618 level using the Fibonacci sequence as a possible area of ​​interest for buyers.

The Fibonacci sequence, which spans the entire Bitcoin rally at $ 19,400, comes in at 0.618 at around $ 13,500. In the sequence, 0.618 is seen as the critical level for a possible trend reversal.

The open interest of the futures market remains high

If the open interest of the Bitcoin futures market stays above $ 1 billion, the price of Bitcoin will tend to fall.

Cointelegraph reported that Throughout history, the price of Bitcoin has been corrected many times when the futures market has seen higher trading activity.

According to Skew The open interest in major futures exchanges currently exceeds $ 1 billion. OKEx, Binance Futures and CME, the three largest BTC futures exchanges, have generated unprecedented open interest of $ 1.4 billion, $ 940 million and $ 930 million, respectively.

Open interest in the Bitcoin futures market. Source: Skew

Bullish arguments

Other dealers, but still, I think Bitcoin price could soar as high as $ 18,000 before a pullback or could represent a continuation of the general uptrend to new highs.

Michael van de Poppe, a full time trader on the Amsterdam Stock Exchange, said something this morning The low price range for Bitcoin will continue for the time being, and is over $ 16,000.

This can result in a relief to $ 18,000. The whale collections also show that the area of ​​$ 16,000 remains a strong support level.

Send it to 18 thousand.

Similarly, a trader whose pseudonym is known as “Crypto Capo” said that based on previous fractals, Bitcoin price could hit $ 18,000 first before seeing another big drop.

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