Bitcoin
BTC$70 846.59

2.09%

Ethereum
ETH$3 567.69

1.50%

Tether
USDT$1.000205

0.05%

Binance Coin
BNB$585.24

1.83%

Solana
SOL$189.55

1.52%

XRP
XRP$0.624980

1.78%

Bitcoin (BTC): The Pullback is Nigh?


November 2020

Needless to say that Bitcoin (BTC) has been the main, if not the only, newsmaker in the crypto industry over the past month as it has galloped to the upside by a stunning 37.8%, something that traders haven’t seen since the end of 2017. Needless to say that the Bitcoin dominance index has been on the rise since August.

BTC dominance chart

Over that period of time, the dominance has climbed upward from 58% to the current 64.9%, which has ultimately led to the cheapening of nearly all altcoins, especially the ones related to the over-hyped DeFi. In this episode of impressive bullish price action, BTC went smashing through the resistance levels from $12,000, so far stopping just a few dollars short from hitting $16,000. Nevertheless, the price has confidently made a new two-year high and is trending strongly to the upside on all time frames.

Will the Bitcoin market start to cool down soon?


However, such an explosive growth always leaves one wondering when the imminent pullback is going to take place. And when it comes to BTC, the pullbacks can be very significant - even on its way to the all-time high at $19,800, Bitcoin had a number of violent drops that amounted to 15% - 20% on a downswing. That’s the reason why even though the Bitcoin buying frenzy is still ongoing, as the bulls are defending the support at $15,000, the bears seem to be lying in wait to knock the price down considerably.

The first thing that hints at the approaching pullback is the visible decline of the Bitcoin hash rate, which is believed to be tightly correlated with the price.

6-month BTC hashrate chart

We see a sharp drop from nearly 150 Ehash/s to the level below 100 E/s, followed by a recovery to 128 E/s. Also, we notice a gradual decline of transaction volume from 370 thousand transactions per day at the beginning of October to the current 240 thousand, along with the amount of BTC sent from wallets per day. This alone doesn’t constitute a BTC sell signal but provides us with a perspective beyond the action on the charts.

On the monthly time frame, BTC is pushing strongly to 78.6% retracement level on the Fibonacci grid, which lies at $16,200. Given that the price often forms long upper wicks when encountering a Fibonacci level, the close of the next monthly candle could be at $17,200, unless BTC initiates a pullback sooner.

1-month BTC/USDT chart

Key price levels:

On the weekly chart, this week’s candle has opened at the same level as the previous one, while the bulls were unable to push above last week’s high at $15,955.

1-week BTC/USDT chart

The price has pierced through the upper band of Bollinger Bands, which is also a strong signal that traders stopped buying BTC and might want to lock-in the profits, forcing the price to drop to $12,200, a middle line of Bollinger Bands, or even to the diagonal support at $11,900.

The daily chart reveals a descending triangle, a bearish pattern, with the support at $14,800.

1-day BTC/USDT chart

The declining trading volume with the predominance of selling activity also suggests that the rally might be running its course. Finally, Stochastic has crossed into the neutral zone to the downside, signaling that the momentum has shifted to bearish.

Key price levels:

Author: Alex Paulson for Crypto-Rating.com

Related

Bitcoin Price Predictions for 2024 and Beyond: Will Bitcoin Soar Again?
Bitcoin Price Predictions for 2024 and Beyond: Will Bitcoin Soar Again?
Celebrating 15 Years of Bitcoin's Genesis Block: A Reflection on Innovation and Revolution
Celebrating 15 Years of Bitcoin's Genesis Block: A Reflection on Innovation and Revolution
The Impending Transformation of the Crypto Landscape: The Potential Impact of a US-Approved Spot Bitcoin ETF
The Impending Transformation of the Crypto Landscape: The Potential Impact of a US-Approved Spot Bitcoin ETF
2024 Cryptocurrency Investment Guide: Identifying the Best Digital Assets
2024 Cryptocurrency Investment Guide: Identifying the Best Digital Assets
Stocks Surge to New Highs Amid Dovish Fed Stance, While Cryptocurrencies Experience a Retreat
Stocks Surge to New Highs Amid Dovish Fed Stance, While Cryptocurrencies Experience a Retreat
The Surge of Institutional Interest in Bitcoin
The Surge of Institutional Interest in Bitcoin
Navigating the Investment Landscape: A Detailed Comparison of Stocks and Bitcoin
Navigating the Investment Landscape: A Detailed Comparison of Stocks and Bitcoin
Navigating the Unthinkable: A Comprehensive Analysis of Bitcoin's Potential Fall to Zero
Navigating the Unthinkable: A Comprehensive Analysis of Bitcoin's Potential Fall to Zero
Navigating the Ebb and Flow: A Deep Dive into the Current Crypto Market Dynamics
Navigating the Ebb and Flow: A Deep Dive into the Current Crypto Market Dynamics

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 78% 39 $70 846.59 2.09% 8.31% $1 393 338 189 415 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 76.4% 50 $3 567.69 1.50% 2.35% $428 378 703 884 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 90.8% 1 $1.000205 0.05% -0.04% $104 475 604 480 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 64.4% 76 $585.24 1.83% 5.66% $87 514 209 717 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 61.2% 85 $189.55 1.52% 6.14% $84 212 953 277 SOL 7 days price change
6 XRP (XRP) XRP XRP predictions 84.8% 28 $0.624980 1.78% -2.15% $34 301 573 001 XRP 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 90.8% 2 $1.000028 0% -0.05% $32 394 907 041 USDC 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 67.2% 62 $0.219143 15.03% 41.77% $31 481 721 943 DOGE 7 days price change
9 Cardano (ADA) ADA Cardano predictions 66.4% 65 $0.651443 0.20% 3.15% $23 179 909 541 ADA 7 days price change
10 Avalanche (AVAX) AVAX Avalanche predictions 58.4% 84 $54.71 0.86% 2.13% $20 648 441 925 AVAX 7 days price change
11 SHIBA INU (SHIB) SHIB SHIBA INU predictions 55.2% 91 $0.000032 4.55% 17.35% $18 737 521 143 SHIB 7 days price change
12 Toncoin (TON) TON Toncoin predictions 58% 85 $4.92 -1.24% 21.20% $17 082 213 682 TON 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 74.4% 49 $9.53 0.44% 3.20% $13 604 226 087 DOT 7 days price change
14 Bitcoin Cash (BCH) BCH Bitcoin Cash predictions 70.4% 56 $573.82 4.95% 38.77% $11 293 841 711 BCH 7 days price change
15 Chainlink (LINK) LINK Chainlink predictions 78% 42 $19.22 -0.82% 4.73% $11 285 980 539 LINK 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2024 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.