Bitcoin (BTC) risks “near-term trouble” on its path to six figures, including a correction near $70,000.
On-chain analytics platform CryptoQuant said in one of its Quicktake market updates on November 16 that BTC price action could see a “healthy cooling.”
BTC Price Analysis Considers “Healthy Cooling”
Bitcoin continues to hover around $90,000, with a weekly gain approaching 13% by the end of the week.
CryptoQuant contributor BaroVirtual joined the suggestion that a new round of consolidation for BTC/USD could be next, setting a potential downside target just above $70,000.
The reason, they argue, lies in two moving average (MA) trend lines that are currently almost 20% apart.
“The positions of the price trackers (7-day and 30-day MA) indicate that we are seeing strong and healthy buying pressure for Bitcoin, which is a very positive sign,” the post said.
“The problem is that the gap between fast trackers and slow trackers is 19%. This ultimately leads to two possible scenarios: 1) Bitcoin takes a sideways position in the $87,000-$93,000 range for a while and then continues to rise. It moves into the $104,000-$120,000 range. We observed a similar phenomenon from February to March 2024.2) Bitcoin corrects downward to the $71,000-$77,000 range and the local uptrend resumes after a moderately healthy cooling of the market.”
BTC/USD 1-day chart with “Price Tracking” MA (screenshot). Source: CryptoQuant
The attached chart shows the rate of increase in BTC price over the past week, including a record daily candle of $9,000 on November 11th alone.
Explaining why the bull market may run out of steam temporarily, CryptoQuant compared it to previous runs towards all-time highs.
Bitcoin Whale Shows No Signs of Selling
As Cointelegraph reported, the idea that the bull market would pause before hitting $100,000 is nothing new.
relevant: If bulls hold key levels, Bitcoin price could reach $100,000 by Thanksgiving.
Some are seeing a long-awaited retest of the newly acquired support level, while bears see BTC/USD possibly falling below $50,000.
Nonetheless, investor confidence remains solid at current levels, with whales of all classes hitting new all-time highs, according to CryptoQuant data.
“It is interesting to note the balance of new whales, which have increased rapidly and may indicate that more whales have been created recently,” wrote fellow contributor Darkfost.
“Even though BTC is around 90,000, we haven’t stopped accumulating and are holding most of it, which is a sign of confidence in the market.”
BTC whale balance data (screenshot). Source: CryptoQuant
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.