Bitcoin
BTC$37 588.27

-0.67%

Ethereum
ETH$2 031.02

-0.10%

Tether
USDT$0.999863

-0.05%

Binance Coin
BNB$226.43

-0.55%

XRP
XRP$0.601580

-1.10%

Solana
SOL$59.44

-1.07%

Bitcoin price dips are transitory, suggesting BTC will soon head to $75K


12 Nov 2021

#Bitcoin

Rising U.S. inflation and overblown fears about Evergrande contagion might be factors behind BTC’s recent pullback, but most analysts view the drop as a “necessary retest.” Volatility is the name of the game in the cryptocurrency market and the Nov. 11 evening sell-off in the price of Bitcoin (BTC) is a reminder that new all-time highs are often followed by sharp whipsaws to underlying support levels. 

Data from Cointelegraph Markets Pro and TradingView shows that after dropping to a low near $62,800 late on Nov. 10, the price of Bitcoin managed to claw its way back up to the $65,000 level where bulls now look to consolidate and regroup for another push higher.

Here’s a look at what analysts are saying about the outlook for Bitcoin and the cryptocurrency market as concerns about rising inflation dominate the news headlines in the U.S.

Bitcoin dips are “transitory”

The sight of a rapid $7,000 decline in BTC may have come as a shock to some, but for analyst and pseudonymous Twitter user ‘Nunya Bizniz’, the price action over the past couple of days is par for the course and transitory in nature based on Bitcoin's past performance.

As observed in the chart below which shows the Bitcoin price along with its 20-day moving average (20-MA), it’s common for a run-up in the price of BTC to be followed by a pullback that touches or briefly dips below the 20-MA before once again heading higher.

Evergrande and inflation affect the market

Insight into the macro factors at play was provided by Jean-Marc Bonnefous, head of asset management at Tellurian ExoAlpha, who highlighted the fact that “there has been much talk about the impact of the Evergrande story on the recent sell-off in the market.” As a way to make the development more relatable to cryptocurrency holders, Bonnefos stated that the “Evergrande news is to equities what Elon Musk tweets are to cryptos” in that it is “somewhat manipulated news to move markets.”

According to Bonnefos, “the crypto markets seem to be overreacting” to the headlines, and “the recent dip is probably more of a technical consolidation after the sharp rally of the last few days.”

And it’s not just negative headlines about Evergrande and tweets from influencers that are affecting the price action in the crypto market. According to Bonnefos, the recent 6.2% rise in the U.S. Consumer Price Index (CPI) also points to a major factor influencing the global financial markets and the price of Bitcoin.

Bonnefous said, “The recent shocking inflation numbers in the U.S. should be a supportive fundamental driver for Bitcoin prices, beyond the short term tactical selling pressure.”

Bitcoin is in the process of a necessary retest

A final word of encouragement was offered by analyst Twitter user ‘GalaxyBTC’, who posted the following chart outlining one possible trajectory for the price of BTC to reach $75,000 in the short-term.

The analyst said, “Yesterday's retest was needed to continue the bull run in a healthy manner. I think we will start pumping harder now.”

The overall cryptocurrency market cap now stands at $2.847 trillion and Bitcoin’s dominance rate is 43.1%.


Related

NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
NordFX Copy Trading: A Comprehensive Guide to Maximizing Profits
Tips to Choose the Right Second Citizenship Program
Tips to Choose the Right Second Citizenship Program
Bitcoin’s continued slide down
Bitcoin’s continued slide down
A new round of crypto market mistrust
A new round of crypto market mistrust
Bitcoin holds its range, but pressure mounts
Bitcoin holds its range, but pressure mounts
Bitcoin unlikely to end correction
Bitcoin unlikely to end correction
Bitcoin looks set to take a severe dive
Bitcoin looks set to take a severe dive
Bitcoin set for a deeper correction
Bitcoin set for a deeper correction
Bitcoin falls under pressure
Bitcoin falls under pressure

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 92% 9 $37 588.27 -0.67% 1.67% $735 115 654 559 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 80.8% 36 $2 031.02 -0.10% -0.59% $244 210 296 174 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 94.8% 1 $0.999863 -0.05% -0.01% $89 269 460 603 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 83.6% 28 $226.43 -0.55% -1.89% $34 349 326 929 BNB 7 days price change
5 XRP (XRP) XRP XRP predictions 80.4% 34 $0.601580 -1.10% -2.45% $32 418 335 056 XRP 7 days price change
6 Solana (SOL) SOL Solana predictions 58% 85 $59.44 -1.07% 4.94% $25 200 375 263 SOL 7 days price change
7 USD Coin (USDC) USDC USD Coin predictions 95.6% 1 $1.000042 0.01% 0.01% $24 386 809 921 USDC 7 days price change
8 Cardano (ADA) ADA Cardano predictions 74.8% 52 $0.373975 -1.61% -1.16% $13 203 022 100 ADA 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 78% 43 $0.082244 2.20% 9.42% $11 682 144 103 DOGE 7 days price change
10 Lido stETH (STETH) STETH Lido stETH predictions 94.4% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
11 TRON (TRX) TRX TRON predictions 83.2% 23 $0.103437 -0.24% 2.38% $9 158 560 880 TRX 7 days price change
12 Wrapped TRON (WTRX) WTRX Wrapped TRON predictions 86% 26 $0.101361 -1.90% 0.16% $8 974 568 197 WTRX 7 days price change
13 Toncoin (TON) TON Toncoin predictions 79.6% 29 $2.41 -1.00% 1.16% $8 275 497 809 TON 7 days price change
14 Chainlink (LINK) LINK Chainlink predictions 69.6% 61 $14.37 -1.40% 1.34% $8 002 523 995 LINK 7 days price change
15 Avalanche (AVAX) AVAX Avalanche predictions 57.6% 89 $21.02 -0.84% 1.90% $7 673 965 985 AVAX 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.

© 2015-2023 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.