Bitcoin (BTC) fell below $ 16,900 again on November 27th on leading exchanges including Binance. The final setback was due to the fact that deposits in whale exchange began to rise.
Ki Yong Joo, CEO of CryptoQuant, revealed that the All Exchange Inlows Mean Index has reached a “danger zone”. Historically, this has resulted in short-term corrections in BTC.
Bitcoin has struggled to accelerate growth by more than $ 17,000
After the price of the Bitcoin card dropped to $ 16,200 on November 27, it is starting to show some signs of improvement. It remained above $ 17,000 for more than 11 hours before closing again.
After the sharp drop in Bitcoin, a low volatility price range was expected. Earlier on November 26, it fell to $ 16,200 in the consumer stock market, mainly in the futures market. As reported by Cointelegraph Markets, hundreds of millions of dollars in futures contracts were settled within hours.
But once the whales started bringing bitcoins to the exchanges, the price started to drop. This indicates that there may be many derivatives buying traders who could be pushed out. Key wrote on November 27:
“BTC Whales is listed on the stock exchange. I expect short-term dumping. All exchange averages (144 MA blocks) have reached 2 BTC. I think we are at risk. The price is likely to move sideways or fall when the whales are active in the exchanges.”
Some traders, such as the Bitcoin Investor with a pseudonym known as “Bitcoin Jack”, anticipated this scenario. He said investors are likely to flock to the bottom, triggering another drop.
On November 26th, after anticipating a breakout near an all-time high, the trader said:
“Another proven fact is that when the price corrects in bitcoin fashion, 90% buy too early, and when the price drops, they sell at the bottom.”
After the initial forecast, the trader also said that Bitcoin is likely to decline or consolidate a week before it begins to appreciate.
Where is the bottom?
The lower short-term forecast varies for bitcoin. Some traders expect $ 16,000 to remain stable, while others expect $ 15,000 to $ 14,000.
A trader under a pseudonym known as Bitlorion said dropping below $ 15,000 is possible. While BTC may not drop to a low, the trader said he is more confident about the short circuits than the gloom in this environment. He said:
“I didn’t close because of this bounce and cut the price again. You’re looking for a landfill for less than $ 15,000. Expect something like this. I was only arrested if I’m wrong, but I feel it’s better to sell this than longing.”
Meanwhile, popular bitcoin trader Ton Weiss said on November 25 that he expects Bitcoin to eventually decline to the $ 14,000 support level.
As reported by Cointelegraph Markets, this $ 14,000 area should be an important support as it represents the peak of a bullish cycle in the summer of 2019.