Bitcoin (BTC) experienced a classic pullback after Wall Street opened on November 16 as the déjà vu BTC price action continued.
Analysis: door open to a deeper correction in BTC prices
The landscape well-attended events compared to the start of the week, where the bulls failed to make new highs to reach support and suffered lengthy sell-offs.
These were less present that day, with around $21 million worth of BTC long. destroyed at the time of writing, according to data from monitoring resource CoinGlass. By November 14, the total reached $120 million.
Commenting on the status quo, market participants noted the repetitive nature of BTC price action, which leaves the possibility of both new highs and a deeper retracement.
“While I maintain my view that the market is set for a correction, we still cannot rule out the possibility of another attempt in the $38,000-$40,000 range,” on-chain monitoring resource Material Indicators. wrote in part of his last post
He added that news about the first Bitcoin exchange-traded fund in the United States “would be a likely catalyst for such a move,” but that time is running out on that due to regulatory time constraints.
A look at the liquidity of the BTC/USDT order book showed an increase in sell-side liquidity at $38,000, with free bid volume present only at $33,000.
“The path of least resistance is down for $BTC if we go by the number of pending orders awaiting execution,” popular pseudonymous trader Horse continued on the subject.
“I think this recent rise has been easy due to an empty pocket left by liquidations and anyone waiting for the decline has been passively adding long positions to the market.”
Dollar Weakness Bolsters Crypto Outlook
The macroeconomic situation was rather calm that day, as weakness in the US dollar re-emerged, reversing the recovery after the sharp fall on November 14.
This is due to US inflation data, which has been more positive than expected in recent times. free surprise for risky assets.
The US Dollar Index (DXY) is back near 104, near its lowest levels since early September.
“The DXY got massacred today, I would say I’m surprised, but I’m not really going down,” said popular trader Bluntz. reacted to the previous move.
“Don’t underestimate how GOOD this is for crypto.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.