Bitcoin price explodes by $ 17.5k, but not all agree rally is sustainable

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The price of Bitcoin (BTC) topped $ 17,400 in a strong intraday rally. On Coinbase, BTC even moved closer to the $ 17,700 mark, setting a new two-year high. As BTC slips through multi-year resistance above $ 17,000, analysts are divided on its near-term outlook. Some say BTC is poised for a pullback as whale deposits start to rise. Others believe there is little resistance up to $ 20,000 and that an all-time high is likely before the next deep correction.Bitcoin’s momentum over the past month has been particularly impressive for two main reasons. First, in previous bull cycles, like longtime trader Peter Brandt Explain, BTC has seen up to nine fixes. But in the ongoing rally, BTC only saw two 10% corrections. Second, Bitcoin has steadily recovered from areas where corrections were expected, such as on November 16 when it hit $ 14,774 on Binance.

However, calls for a pullback are also increasing as market sentiment around Bitcoin heats up. Speaking to Cointelegraph, Ki Young Ju, CEO of crypto data provider CryptoQuant, said that the whale trading ratio indicates that whale deposits on exchanges are increasing. In the short term, this could put selling pressure on BTC. Traders are also saying that current BTC highs near $ 20,000 could be at the forefront, leading to a correction before the level is reached.

A minor Bitcoin pullback?

When Bitcoin Whales deposit BTC on exchanges, the trend usually shows an intention to sell wealthy investors. According to CryptoQuant’s Tokens Transferred metric and Exchange Whale Ratio, deposits from whales and general investors are starting to increase. This means that more and more investors are turning to the exchanges for profit from their holdings of BTC. Ki said:

“Tokens transferred (not adjusted to the entity) over the Bitcoin network are increasing, indicating that whale wallets are moving their funds. And the cash flow ratio for all exchanges is going down, which means that the exchanges haven’t brought up those important transactions. […] I think massive OTC transactions are still going on. This is one of the main reasons I am still long term on Bitcoin. “

The whale trading ratio is also oscillating at a level that has historically led to a sharp drop in prices. Ki said that over the past few days, the ratio has hovered above 85%, which puts Bitcoin at risk for a potential correction. Since there is virtually no resistance between $ 18,000 and the peak of $ 20,000, it would be reasonable to expect whales to make a profit of around $ 17,000.

Whales seek liquidity for buy and sell orders, as they process larger volumes. Selling when the price of BTC rises is ideal for whales, as it limits potential downside volatility. Therefore, there is a high probability that the whales will look to sell between $ 17,000 and $ 18,000 as a last stop before seeing a new all-time high. As Ki added:

“Looking at the ‘Exchange Whale Ratio (72h MA)’, the BTC price should face some small corrections. […] When this percentage is less than 85%, the chances of the price continuing to rise are high. Between 85% and 90% indicates a correction, and above 90% suggests that a sharp drop in prices may occur. We have a risk of correction as this value has exceeded 85% lately. “

Some pseudonymous traders have also predicted that BTC will see a near-term high before reaching a new high. In the medium term, even if the momentum of BTC is strong, a trader known as “SalsaTekila” he told me a new test of a lower BTC support is expected. He identified $ 12,000 as the potential area where the next deep correction could lead. Given Bitcoin’s historical cycles, the trader also said that a six-month correction would not be unusual.

A continuous bull rally until the end of the year

At the peak of Bitcoin’s favorable technical structure, the notable rise in daily volume in the cryptocurrency market supports the case of the bull. On November 17, Changpeng Zhao, CEO of Binance he told me The exchange has seen unprecedented system load, indicating that the demand for cryptocurrency trading is increasing.

Arcane Research also found that Bitcoin’s spot volume increased 270% over the past month. The sharp increase in the volume of the cryptocurrency market in general shows that real demand is driving the ongoing bull run. Arcane Research’s weekly report reads as follows:

“Thursday’s daily volume last week was the highest since the brutal crash in March, and volume has also remained high in recent days. This took the 7-day average to new highs this week. Bitcoin volume has grown by over 270% over the past month. “

Yet despite all the positive factors mentioned above, the general public is not involved in the ongoing rally. Google Trends shows the popularity of the keyword “Bitcoin” is only 16% of what it was at the peak of 2017. A recent Bloomberg report calls the recent uptrend a rally that “no one is talking about” . These trends show that Bitcoin has significant room for growth until the end of the year.

But Matt Maley, an investor at Miller Tabak + Co. who recognizes the strong institutional demand around Bitcoin, said the return of individuals remained uncertain, as those who “got badly burned” in 2017 are likely “less enthusiastic” about the return. About BTC now. The way that would change is if Bitcoin breaks its all-time high of $ 20,000 and FOMO – fear of missing out – around BTC returns. Therefore, there is a high probability that if BTC hits a new all-time high, a broader rally could emerge.



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