As a seasoned crypto investor with years of experience navigating market highs and lows, I’ve learned to stay calm amidst turbulence. The recent pullback in Bitcoin’s price doesn’t faze me too much; it’s just another day in the life of a cryptocurrency enthusiast.
The recent 6% decline in Bitcoin‘s value, occurring from November 13 to 15, has ignited debates regarding the possibility of a more significant plunge ahead.
The drop happened following Bitcoin exceeding its former record peak of $73,880, rising beyond $91,000. Although there’s been a pullback, Bitcoin has preserved an upward trend with higher highs and higher lows on the daily chart, suggesting ongoing bullish energy as long as it remains above the $85,000 level.
Liquidity Sweep at $85,000
Bitcoin has been robust even after its recent drop, showing a pattern of increasing highs and highs on hourly charts and staying above crucial moving averages like the 50-day, 100-day, and 200-day ones. This consistent bullish trend started on November 5, suggesting strong overall market resilience.
According to Analyst Bluntz, there’s a possibility that the current drop to around $87,000 could mark the lowest point before Bitcoin aims for $100,000. A significant accumulation of funds near $85,500 might strengthen this support level, thereby fostering further growth in price.
Overleveraged Markets
If Bitcoin can’t keep its day-end closing price above $85,000, it might encounter difficulties due to the growing number of overleveraged positions in the futures market, potentially leading to a more significant downturn.
On November 13, as reported by CryptoQuant’s CEO Ki-Young Ju, the projected Bitcoin/USDT futures leverage ratio has soared to an unprecedented level of 270%, eclipsing its previous high from May 2024.
Increasing the danger, Bitcoin’s open interest is currently at record levels, indicating a large number of positions that are leveraged. Furthermore, since Bitcoin has only traded above $73,884 for fewer than 10 days, there’s less historical trading activity in this price range. This results in a thinner order book, making it harder to maintain stability within this specific price band.
CoinGlass data reveals a key liquidation zone around $85,750, where over $127 million in leveraged positions could be wiped out. This makes a liquidity sweep of the $85,000 level likely, potentially providing the foundation for a price rebound if buyers step in. However, the thin market conditions and high leverage remain critical concerns that could exacerbate volatility.
Bitcoin’s continued upward trend depends on it maintaining prices above $85,000. However, overextended market conditions and limited support above $73,880 make a more substantial price drop possible. The upcoming days are crucial for understanding if Bitcoin will hold steady or continue to fall.
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2024-11-16 21:08