Bitcoin Faces Potential Pullback After Rapid Surge
Cryptocurrency experts have voiced concerns about the sustainability of Bitcoin’s recent price surge, warning that the current impulsive momentum could soon lead to a significant pullback, potentially driving BTC prices down to $70,000.
The surge that triggered this analysis occurred on November 13, when Bitcoin temporarily soared beyond the $90,000 mark, establishing a new all-time high. Data from Cointelegraph Markets Pro and Binance’s TradingView confirmed the record-breaking peak of $90,240 on the Bitstamp exchange, registered late in the trading day. Despite multiple attempts to sustain levels above $90,000, the bullish market succeeded only momentarily.
The high volatility of the asset, paired with the psychological weight of surpassing a round number, combined with substantial sell-side liquidity and a market that some analysts deemed overheated, has raised red flags. Keith Alan, co-founder of trading resource Material Indicators, emphasized that Bitcoin needs to decelerate and consolidate support at a new level to maintain its trajectory.
At present, liquidity at the $90,000 level stands at approximately $80 million, with a formidable sell wall ranging from $100,000 to $177 million. This situation is expected to slow down Bitcoin’s current pace.
Short-term market conditions remain uncertain, leading analysts to suggest that a new price record might not be reached anytime soon. However, the possibility of market euphoria pushing the price higher cannot be entirely dismissed. Credible Crypto, a trader known for predicting a potential Bitcoin drop to $50,000, highlighted that the market could continue exhibiting range-bound behavior before a potential upswing.
“I still don’t believe this is the impulsive move that many see it as. Bitcoin has climbed far beyond initial expectations, altering my trading outlook,” he remarked.
Experts now foresee two primary scenarios:
- A major bull trap.
- Continued upward momentum.
“In either case, I anticipate a few weeks of consolidation between $70,000 and $90,000,” the expert added.
Further insights came from Willy Woo, the creator of the Bitcoin data analysis platform Woobull. He linked the current trends to liquidity levels and Fibonacci extension metrics, pointing out that the region slightly above $100,000 would be crucial for Bitcoin’s future price trajectory.
With the market teetering on a fine line between optimism and caution, the next few weeks are expected to bring clarity on whether Bitcoin’s rally can sustain itself or succumb to a broader correction.
