Bitcoin Sees Classic Pullback After Wall Street Open
Bitcoin (BTC) experienced a typical pullback after the Wall Street open on November 16, continuing the familiar BTC price action.
Analysis: Potential for Deeper BTC Price Correction
The market closely mirrored events from earlier in the week, with bulls failing to convert new highs to support and facing significant liquidations. Although there were fewer liquidations on the day, approximately $21 million of BTC longs were wiped out at the time of writing, compared to $120 million on November 14.
Market participants noted the repetitive nature of BTC price action, leaving room for both new highs and a deeper retracement. On-chain monitoring resource Material Indicators indicated that the market is due for a correction, but it’s still possible for another attempt at the $38k – $40k range. The news about the first United States Bitcoin spot price exchange-traded fund (ETF) could be a catalyst for such a move.
Dollar Weakness Boosts Crypto Outlook
The macro picture was favorable as U.S. dollar weakness returned, offsetting a recovery from a significant drop on November 14 due to positive U.S. inflation data. The U.S. dollar index (DXY) hovered near 104, close to its lowest levels since September.
Popular trader Bluntz reacted to this move by stating, “Don’t underestimate how GOOD this is for crypto.”
Hot Take: Bitcoin’s Price Action Continues with Potential for New Highs or Deeper Correction
The recent pullback in Bitcoin’s price following the Wall Street open is indicative of familiar BTC price action. There is potential for both new highs and a deeper retracement, as market participants observe repetitive patterns in BTC price behavior. The possibility of another attempt at the $38k – $40k range remains open, especially with news about the first United States Bitcoin spot price exchange-traded fund (ETF) being a potential catalyst. Additionally, U.S. dollar weakness has bolstered the outlook for crypto assets, providing a favorable macro picture amidst positive U.S. inflation data.
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