Bitcoin Experiences Pullback Amid Recurring Price Pattern; U.S. Dollar Weakness Boosts Crypto Outlook
Summary:
Bitcoin saw a familiar pullback following Wall Street's open on November 16, dropping over $1,000 to land at $36,470. Analysts noted the repetitive nature of the BTC price movement that opens up possibilities for fresh highs or a deeper pullback. Reflecting back to the U.S. Bitcoin ETF, they inferred that its news could act as a catalyst for such moves. The weakness in the dollar, backed by U.S. inflation data, created an appealing landscape for the crypto industry. However, investment decisions must be accompanied by individual research due to their associated risk.
Bitcoin experienced a pullback following the opening of Wall Street on November 16, recapitulating a familiar pattern in its price action. TradingView and Cointelegraph Markets Pro data tracked Bitcoin's tumble to $36,470, a drop of over $1,000 in a single day. The narrative mirrored earlier events of the week when attempts to turn new peaks into support failed, leading to extensive liquidations. However, the day saw fewer such occurrences, with about $21 million of Bitcoin longs liquidated at the time of reporting, as per CoinGlass data. On November 14, the figure was $120 million.
Market observers pointed out the recurring pattern of Bitcoin's price action, leaving room for either new peaks or further pullbacks. Material Indicators, an on-chain analysis resource, partially wrote in its current X post, "Although I stick to the belief that a correction is due, we can't dismiss another shot at the $38k - $40k range." The first Bitcoin spot price exchange-traded fund (ETF) in the US could potentially trigger such a move, though regulatory time limits are closing in.
Material Indicators/X disclosed a snapshot of BTC/USDT order book liquidity showing sell-side liquidity ramping up at $38,000, offset by bid volume only seen at $33,000, suggesting Bitcoin is more likely to decline as unfilled orders wait. Anonymous trader Horse further endorsed this perspective, stating, “I think this recent uptick was induced by a liquidation-created vacuum and passive market entry from those waiting for the dip."
Meanwhile, weakness in the U.S. dollar has improved crypto prospects. Despite its earlier recovery from a steep fall on Nov. 14, the dollar returned to its weak state. This was due to U.S. inflation data outperforming expectations, providing a boon to risk assets. With the U.S. dollar index (DXY) approaching its lowest point since early September at near 104, trader Bluntz remarked that the dollar's depreciation bodes well for crypto. This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should undertake their own investigation before deciding.
Published At
11/16/2023 3:39:02 PM
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