Bitcoin was fighting for a record high on November 13 after briefly surpassing $90,000.
BTC/USD 1-day chart. Source: TradingView
Bitcoin price needs to “slow down.”
Bitcoin (BTC) price hit a new record high of $90,240 on Bitstamp by the latest daily close, according to data from Cointelegraph Markets Pro and TradingView. After several attempts to break the $90,000 level, the bulls ultimately succeeded, but only briefly.
Volatility remained high due to the psychological significance of the round number combined with high sell-side liquidity and a market that some say is already overextended.
“BTC needs to slow down and build structural support in a new range,” Keith Alan, co-founder of trading resource Material Indicators, told X on November 12.
“$80 million in BTC requires liquidity built up at $90,000, and with a $177 million sell wall at $100,000, the brakes should be applied.”
BTC liquidation heatmap. Source: Coinglass
Liquidity at $90,000 continued to thicken as the price fell about 2%, according to data from monitoring resource CoinGlass.
Material Indicators, a signal from one of its proprietary trading tools, said the status quo may be maintained in the near term.
“Trend forecast is flashing a new (downside) signal on the $BTC daily chart,” he announced to his X followers.
“This is a signal that the price is unlikely to form a new ATH in the next 24 hours. However, proceed with caution as a period of euphoria could push the price back up and invalidate this signal before it is printed at the closing price.”
BTC/USD 1-day chart. Source: Material Indicators/X
Cautious market participants see range action taking precedence before a potential uptrend continues.
Among them was trader Credible Crypto, who had previously predicted that the BTC price would crash below $50,000 and posted a strong reaction on social media.
“I don’t believe this is the impulsive move most people think it is, but the BTC price has moved significantly higher than expected, so things have changed a bit from a trading perspective,” he said in his latest exclusive. Post on Bitcoin.
“There are really two ways to go about this ATM: 1. This is a huge bull trap. 2. It continues to rise. In either scenario, I expect it to fall between 70,000 and 90,000 for a few weeks.”
Even the more optimistic BTC price outlook now needs some cooling off. But a six-figure hit is on the radar.
relevant: $80,000 BTC Price Chases Gold — 5 Things to Know in Bitcoin This Week
In an explanatory
“In these situations, there are two guides for finding new resistance. “Fibonacci bands that use magic numbers found in nature and actual liquidation levels of market positions,” he wrote.
“88-91k was the first goal. We hit it off. This is where integration must occur. This comes from local fib levels and the liquidation level where most shorts are sold, an exit where short sellers are forced to buy.”
Woo highlights the $102,000 Fibonacci line.
Bitcoin exchange liquidation map (screenshot). Source: Coinglass
Woo added that the area just above $100,000 will be the next BTC price zone.
“102k is the next macro fib using the last cycle high and this cycle low,” he concluded.
“We will see where the new clearing is clustered, but for now this is the next target based on Fibs.”
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.