Numerous traders pointed this out during the weekend Bitcoin (BTC) price has broken its parabolic upward trend from September. Technical analysts prepare to retreat as the dominant cryptocurrency seeks consolidation.
Bitcoin could still rally strongly after the week’s close if the rally continues. But he would have to re-enter the parable quickly or risk a possible downward correction.
Traders point to $ 15,500 as a key level to keep the uptrend going
Bitcoin has risen continuously since the beginning of September without major corrections. Usually During the uptrend, BTC has historically seen declines of 20% to 30%. There is a chance of a major retreat if BTC doesn’t re-enter the parabola.
According to the 12-hour Bitcoin price chart shared by the trader under the pseudonym “Altcoin Psycho”, BTC has already passed 2 months of parabolic progress.
The trend doesn’t necessarily suggest that BTC will register a profound short-term correction. Rather, it just means that A trend could form as the markets cool down.
For example the longtime technical analyst John Bollinger said that the price of BTC is likely to decrease or consolidate. Considering that BTC is at the top of the Bollinger bands, BTC is currently in overbought territory.
But still, There is always the possibility that BTC could see a stronger short-term rally in a different technical structure.
The breakout of the parabolic uptrend simply means that a new market structure will emerge. It remains to be seen whether this would mean a downtrend or a wider rally.
In the near future Michael van de Poppe, a full time trader on the Amsterdam Stock Exchange, said the $ 15,500 level is key. Said If the BTC drops below this level, a major correction is possible. Wrote::
“The market is generally at a crossroads. If we drop below $ 15,500, we will likely see a correction in all BTC markets with a possible price of $ 13,000 or less. “
Technical analysts are generally cautious about predicting a clear short-term direction due to the uncertainty in the market. There is a good chance that BTC will continue to rise or see a significant drop in price.
But still, When Bitcoin drops below $ 15,500, it means that the likelihood that BTC will test lower support levels is high.
On the weekly chart, the two main short-term moving averages (MAs) are at $ 13,967 and $ 12,390.. While the weekly chart need not go back to the MAs, there have been instances in previous bull cycles where the weekly chart retested lower MAs.
The variable is the sale of BTC by the whales
Since November 10th, the Gemini Exchange has booked unusually high deposits. This usually indicates that the whales are selling their holding company for a profit..
A pseudonymous analyst named “Blackbeard” said What On November 10th, an unusually high amount of BTC was transferred in Gemini wallets. This refers to on-chain data from CryptoQuant.
On November 15th, as Cointelegraph reported, Gemini deposits rose again, which could lead to more short-term selling pressures.
In the foreseeable future, When BTC is struggling to recover, selling pressure from whales and miners remains an important variable.