Bitcoin Slides Below $35,000: Caution Urged Amid Market Uncertainty
Summary:
Amid investors cashing in their profits, the value of Bitcoin (BTC) has dropped below $35,000. The slide is a standard part of all upward trends and is generally considered healthy since it removes ill-prepared investors and creates space for stronger ones. Even though market trends for cryptocurrencies are mixed, with some experiencing a downturn and others suggesting resilience, investors eager to buy dips should proceed with caution. The drop before a rally leading to the 2024 Bitcoin halving event is a possibility. The next direction of the market could depend on the degree to which bulls can secure the support levels and whether bears can leverage the current vulnerability.
As investors rushed to bank their profits, Bitcoin (BTC) saw its price fall below $35,000 on November 13 and 14. Corrections are normal and often seen as a healthy part of any uptrend, as they allow stronger investors to increase their stakes while scaring off less committed ones. However, the dip-buyers should proceed with caution, as Glassnode data reveals a decline in the number of sizable Bitcoin wallets holding over $1,000 in BTC to a month-low. This could imply that some significant investors have cashed in on recent strengthening of the cryptocurrency.
DecenTrader's co-founder Filbfilb anticipates a potential drop before a rally leading up to Bitcoin halving slated for April 2024. Filbfilb optimistically projects Bitcoin could gain momentum and reach between $46,000 and $48,000 by the halving event.
Now, the question arises whether Bitcoin and certain altcoins could return to their bullish trend or confront staunch selling resistance at higher levels. A close look at the charts of the top ten cryptocurrencies might provide some answers.
Bitcoin's price fell back into the ascending channel pattern on November 13, possibly snaring overconfident buyers. This incited a sale that drove the price down to the support line of the channel by November 14.
However, signs of eager buying at lower prices could still spark an upwards push for the BTC/USDT pair, aiming above the resistance line. But, this effort might face fierce resistance from sellers. If the price plummets beneath the channel, it suggests investors are rapidly exiting, potentially dragging the price down to the $32,400 to $31,000 support zone.
Ether (ETH) saw an uptick on November 13, but the large wake on the candlestick indicates high-level selling. This continued on November 14, bringing the price down to below the significant $2,000 mark.
On the other hand, BNB (BNB) bounced back from solid support at $235 after falling below $239 on November 14, suggesting strong buying interest at dips. Buyers will likely attempt to drive the price to the $258 to $265 resistance zone, which will be fiercely guarded by the sellers.
In contrast, if the price plunges below the 20-day EMA, a decline to the 50-day SMA could be on the cards.
To summarize, the cryptocurrency market is exhibiting a mixed bag of trends. Some currency prices, such as BTC and ETH, are seeing a downturn, whereas others like BNB show signs of resilience at lower levels. The final direction would be determined by how fiercely the bulls can guard the support levels and if the bears can capitalize on the current weakness.
Published At
11/15/2023 6:30:20 PM
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