Over the last two, the Bitcoin price has come under some strong selling pressure while slipping another 3% all the way to $35,000. This shows that Bitcoin has entered a strong retracement after hitting $37,000 last week making investors cautious of the current developments.
Key Bitcoin Red Flags to Watch
As reported, the recent selling pressure comes as Bitcoin whales have been cashing out on huge numbers over the last week. Popular crypto analyst Ali Martinez stated that Bitcoin whales initiated profit-taking on November 3, capitalizing on the BTC price surge from $35,000 to almost $38,000. During this period, over 15 wallets, each containing more than 1,000 BTC, either sold or redistributed their holdings.
Courtesy: Ali Martinez
On the other hand, Ali Martinez also points out that the Bitcoin network has been slowing down. A surge in the price of BTC coupled with a slowdown in network growth raises concerns, signaling a potential lack of momentum to sustain the uptrend. This bearish divergence between BTC price and network growth serves as an on-chain sell signal that traders should take into consideration, he added.
Courtesy: Ali Martinez
With today’s price drop, Bitcoin has breached its crucial support at $36,400. The next support sits at $36,400 breaking which can lead to further price correction up to $30,200.
#Bitcoin has found stable support around $36,400, but if this level breaks, the next critical demand zones for $BTC are at $34,300 and $30,200. pic.twitter.com/5yY6fwbVq3
— Ali (@ali_charts) November 14, 2023
Positive Developments for BTC
The US CPI data shows that inflation has been easing giving equity markets a boost. Analysts predict that Bitcoin could follow the cue soon and could rally to $40,000 going ahead.
Popular analyst Michael van de Poppe said that Bitcoin is in search of support, and the scenario remains valid where a test in the range of $34.8-35.2K could provide additional strength toward the highs.
#Bitcoin seeking for support.
Scenario is still valid, in which a test around $34.8-35.2K could give further strength towards the highs.
These dips are usually entry points for altcoins. pic.twitter.com/H2XdlMxLnW
— Michaël van de Poppe (@CryptoMichNL) November 14, 2023
On the other hand, the SEC is going to announce its decision on the approval of spot Bitcoin ETF by November 17. Ark Invest’s Cathie Wood notes an increase in the likelihood of spot Bitcoin ETF approval, citing engagements between the SEC, ARK, and BlackRock.
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