Bitcoin
BTC$69 852.07

-1.87%

Ethereum
ETH$3 757.14

3.02%

Tether
USDT$0.999867

0.01%

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BNB$620.76

3.64%

Solana
SOL$180.88

-0.72%

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0.05%

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%.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 86% 22 $69 852.07 -1.87% 12.84% $1 376 199 992 240 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 80% 32 $3 757.14 3.02% 29.32% $451 339 336 735 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 91.2% 1 $0.999867 0.01% 0.01% $111 349 377 052 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 89.6% 7 $620.76 3.64% 8.88% $91 614 962 914 BNB 7 days price change
5 Solana (SOL) SOL Solana predictions 76.8% 50 $180.88 -0.72% 25.52% $81 244 861 724 SOL 7 days price change
6 USD Coin (USDC) USDC USD Coin predictions 96% 1 $1.000070 0.05% 0% $33 088 296 219 USDC 7 days price change
7 XRP (XRP) XRP XRP predictions 90.4% 10 $0.533167 -0.51% 6.50% $29 478 240 921 XRP 7 days price change
8 Dogecoin (DOGE) DOGE Dogecoin predictions 79.2% 34 $0.167903 3.06% 15.21% $24 243 561 005 DOGE 7 days price change
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11 Avalanche (AVAX) AVAX Avalanche predictions 76.8% 41 $41.45 0.99% 28.64% $16 272 718 709 AVAX 7 days price change
12 SHIBA INU (SHIB) SHIB SHIBA INU predictions 77.6% 42 $0.000026 0.88% 11.75% $15 168 050 947 SHIB 7 days price change
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14 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 82.8% 21 $69 823.38 -1.82% 12.87% $10 855 899 353 WBTC 7 days price change
15 TRON (TRX) TRX TRON predictions 92% 9 $0.123640 -0.09% -1.44% $10 809 671 444 TRX 7 days price change

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