Bitcoin dropped to $90,000band still maintained its bullish position with a third steady weekly green candle.
BTC prices are likely to “cool off significantly” before breaking out to $100,000, According to CryptoQuant. Analyst BaroVirtual believes that Bitcoin could fall to $70,000, with the two moving averages (MAs) currently being nearly 20% apart.
“The positioning of short-term and long-term investors (7-day MA and 30-day MA) shows that the current buying pressure is very strong and healthy, which is a positive signal for the market,” BaroVirtual shared.
However, he also strictly warned that the 19% gap between the two MAs could lead to two scenarios:
Bitcoin trades in the $87,000-$93,000 range for a while before breaking out to $104,000-$120,000. A similar scenario occurred during the period from February to March 2024.
Bitcoin corrects to the $71,000-$77,000 range, which is a “healthy cool-down” for the market before the uptrend resumes.
The accompanying chart shows the breakout of BTC prices over the past week, especially with the record daily candle of $9,000 on November 11 alone.
To explain why the rally may have temporarily stalled, CryptoQuant compared it to previous rallies that led to all-time highs. However, on-chain data still shows strong investor confidence, especially as whales are accumulating BTC at new record highs.
“It’s remarkable to see the number of new whales increasing rapidly, indicating that more large investors have been entering the market recently,” analyst Darkforst. said. When BTC was around $90,000, they keep on accumulating it did not sell. This is a sure sign of strong confidence in the market trend.”