Bitcoin (BTC) snatched $ 17,400 in a strong intraday rally. On Coinbase, BTC approached the $ 17,700 mark, setting a new two-year high. As Bitcoin slips through multi-year resistance above $ 17,000, analysts share their short-term forecast. Some say that Bitcoin supports a decline when whale deposits begin to rise. Others believe that there will be little resistance below $ 20,000, and that it will probably be reached full time before the next deep correction.
Bitcoin’s pace over the past month has been particularly impressive for two main reasons. First, BTC has undergone as many as nine corrections, as longtime trader Peter Brandt explained. But in the continuous rally, Bitcoin has only undergone two corrections of 10%. Second, Bitcoin is constantly recovering from areas where adjustments were expected, as was the case on November 16, when it hit $ 14,774 on Binance.
However, talks about a fall are increasing as market sentiment rises above Bitcoin. Speaking to Cointelegraph, Ki Yong Ju, CEO of the crypto data provider CryptoQuant, said that the percentage of whale exchanges indicated an increase in whale occurrences in the exchanges. In the short term, this could put pressure on selling BTC. Traders also say that Bitcoin’s current collections of around $ 20,000 may be temporary, triggering a correction before hitting the level.
Slight decline in Bitcoin?
When bitcoin whales put BTC on stock exchanges, the trend usually shows the intention to sell from wealthy investors. According to CryptoQuent’s calculation of Tokens Transfered and Exchange Whale Ratio, deposits from both whales and regular investors are starting to increase. This means that more and more investors are turning to the stock exchanges to make a profit on their BTC assets. Key sa:
“The number of tokens being transferred (without adjustment by regulation) on the Bitcoin network is increasing, indicating that whale wallets are moving their money. The degree of movement of funds for all exchanges is declining, which means that the exchanges have not started these large transactions. […] I think the big OTC agreements are still going on. This is one of the main reasons why I still use Bitcoin a lot. ”
The humpback whale also hovers at a level that has historically led to a significant fall in prices. Key said that the ratio has hovered over 85% in recent days, which puts Bitcoin in a high-risk position for a possible correction. With little resistance between $ 18,000 and $ 20,000, it would be reasonable to expect the whales to make $ 17,000.
Whales look for cash for both buy and sell orders because they handle large volumes. Selling when the BTC price rises is ideal for whales, as it limits potential downside disadvantage. Consequently, there is a strong possibility that the whales will seek to sell between $ 17,000 and $ 18,000 as their last stop before reaching a full-time high. Also added a key:
Given the whaling ratio (72 hours MA), the BTC price is likely to undergo minor adjustments. […] When this figure is below 85%, there is a high probability that inflation will continue. 85% to 90% indicate a correction. , And more than 90% indicate the possibility of a significant price drop. We have a certain risk of correction, since this figure has recently exceeded 85%.
Some traders with aliases have also speculated that Bitcoin will experience a short-term peak before hitting a new record high. In the medium term, although BTC’s momentum is strong, a trader known as SalsaTekila said that a review of BTC’s low support is expected. He identified $ 12,000 as a potential area for the next deep rebound. Looking at the historical cycles of Bitcoin, the trader also said that a six-month correction should not be unusual.
The bullish rally continues for the rest of the year
Amid Bitcoin’s preferred technical structure, the noticeable increase in daily volume in the cryptocurrency market supports the bullish case. On November 17, Binance’s CEO Changpeng Zhao announced that the stock exchange was experiencing high use of the system, indicating an increased demand for cryptocurrency trading.
Arcane Research also found that Bitcoin’s spot volume has increased 270% in the last month. The apparent increase in the cryptocurrency market as a whole shows that real demand is behind the continuous rise in prices. Arcane Research’s weekly report states:
“The daily volume on Thursday last week was at its highest after the sharp crash in March, and the volume has remained high in recent days. This pushed the seven-day moving average to new heights this week. The Bitcoin volume increased by more than 270%. The last month. ”
But despite all the positive factors mentioned above, the mainstream does not participate in the rally. Google Trends shows that the popularity of the keyword “bitcoin” is only 16% of what it was during its peak in 2017.