BTC price ‘issues’ include $70K dip despite Bitcoin whale accumulation
2024.11.17 10:25
Bitcoin (BTC) risks “short-term issues” on its route to six figures — including a correction to nearly $70,000.
In one of its Quicktake market updates on Nov. 16, onchain analytics platform CryptoQuant said BTC price action may see some “healthy cooling.”
BTC price analysis considers “healthy cooling”
Bitcoin continues to circle $90,000 as week-to-date gains approach 13% into the weekly close.
Joining those suggesting that a new consolidation phase could come next for BTC/USD, CryptoQuant contributor BaroVirtual put the potential downside target at just above $70,000.
The reason, it argues, lies in two moving average (MA) trend lines, now nearly 20% apart.
“The position of the price chasers (7d and 30d MAs) indicates that we are seeing intense, healthy buying pressure on Bitcoin, which is a very positive signal,” the post stated.
“The issue is that the gap between the fast and slow chasers is 19%, and this, in turn, leads to 2 possible scenarios:1) Bitcoin takes a sideways position in the $87,000-$93,000 range for some time and then continues its upward movement to the $104,000-$120,000 range. We observed something similar from February to March 2024.2) Bitcoin corrects downwards to the $71,000-$77,000 range, and there is an intermediate healthy cooling of the market, and then the local upward trend resumes.”
BTC/USD 1-day chart with “price chase” MAs (screenshot). Source: CryptoQuant
An accompanying chart puts the rate of BTC price upside over the past week in context, with a record-breaking $9,000 daily candle on Nov. 11 alone.
Explaining why bulls could temporarily run out of steam, CryptoQuant drew comparisons to previous runs toward all-time highs.
Bitcoin whales show no sign of selling
As Cointelegraph reported, the idea that the bull run will pause before $100,000 hits is far from new.
Related: Bitcoin price can hit $100K by Thanksgiving if bulls hold key level
Some see a long-awaited retest of newly won support levels, while bearish opinions see the chance of BTC/USD crashing to $50,000 or lower.
CryptoQuant data nonetheless shows that investor conviction remains solid at current levels, with whales of all classes accumulating through new all-time highs.
“It’s interesting to note the balance of new whales, which has increased rapidly and could also indicate that more whales have been created recently,” fellow contributor Darkfost wrote.
“Even with BTC around 90k, they haven’t stopped accumulating, and most are holding, which is a sign of confidence in the market.”
BTC whale balance data (screenshot). Source: CryptoQuant
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
