Weekly Technical Overview: Is The Present Bitcoin Dip a Potential Accumulation Opportunity?
The Bitcoin market continues its consolidation for the second straight week. Despite the market heading north with aggression, the buyers seem to have taken a pause. In fact, the break in the uptrend is perhaps a reversal to the downside. That being said, the market’s overall trend remains unchanged, with the bulls in the driver's seat.
To bring it to perspective, the entire crypto market is also following the same trend as that of Bitcoin, where most of the cryptos are pushing the market lower and lower on the smaller time frames. For instance, the second-largest cryptocurrency, Ethereum, which was always in sync with Bitcoin during the bull run, is still continuing to do so in the current retracement phase.
BTC Quick Price Update
On the price front, BTC has finally taken a dip below the $60,000 mark after weeks of consolidation above it. Although the buyers seemed powerful during their impulsive pushes, the momentum took a hit after the price surpassed $60,000. Precisely speaking, the market went through consolidation for 30 days after the $60k mark and still failed to hold its predominant trend (uptrend).
Of course, the market did set a new ATH recently, but the momentum was not strong enough to continue to much higher levels. As a result of the market failing to sustain at the highs of $68,000, the market dipped down to zones around $58,000. Currently, the market trades at the same levels, with volatility seeing some rise lately.
Bitcoin Whale Alert
In the middle of a downturn that is affecting the larger crypto markets, a Bitcoin whale is shifting hundreds of millions of dollars worth of BTC.
According to blockchain tracker Whale Alert, a huge crypto investor moved exactly 10,000 BTC from several wallet addresses coming from cryptocurrency business Xapo to one of the notable global crypto exchanges. The Bitcoin stockpile was worth almost $608.8 million at the time of the transfer.
Source: Official Twitter of Whale Alert
Other significant financial transactions have also been reported by Whale Alert in the last 48 hours, despite the crypto industry's downturn. Whales are shifting huge amounts of money worth of Bitcoin across crypto exchanges in 3 transactions. Also, whales withdrew nearly $250 million in Bitcoin from another popular exchange in two transactions.
Fear & Greed Index Recovers, but Gradually
The Bitcoin Fear & Greed Index, which reveals whether netizens are generally optimistic or pessimistic about the crypto king's short-term dynamics, shows signs of recovery. The Bitcoin "Fear & Greed" Index began to recover after losing 50% in 3 days, according to data released by the Alternative.me platform.
Crypto speculators suffered more than $1.12 billion on Nov 16 and Nov 18, as per data released by analytical dashboard Coinglass. Bitcoin and Ethereum enthusiasts opened the vast majority of long positions that were liquidated.
Bitcoin Technicals Unleashed
The technicals of Bitcoin are getting interesting day after day, although the price has not made a significant move lately for a month or so. Representing "the calm before the storm" situation, Bitcoin price action is hovering only between two price levels - $60,000 and $68,000.
But in the bigger picture, the current price movement remains insignificant. And the first clue of the bulls still staying in the game comes from the reaction from the demand levels at the lows of $30,000. Despite the sellers pushing the market south with intense momentum, the buyers consumed the market prices in the form of a discount as the bulls shot the market right back up.
Furthermore, the accumulation that continued for several months since the beginning of June allowed the institutions to buy the asset at the lowest prices. As a result of the buyers completing their accumulation, the market made its first higher high, bringing the price up to $52,000. The intensity of the bulls on the way up clearly indicates that the higher timeframe players are heading to set another ATH.
Later, after a higher-low was formed at $40,000, the price marched north and did produce a brand new all-time high, up to $68,000 and thereabouts.
Although the new high was only a single-digit value higher than the previous, the momentum was still in the dominance of the bulls. And as mentioned earlier, the higher timeframe players were on their move to make a strong impulsive push to the north.
With respect to recent price action, the BTC market has gone into an overextended consolidation as the buyers failed twice to breach their newly set record. This hence gives clues for the market to dip lower, at least to support levels, before the buyers jump in on the buys.
Stay tuned and watch the KuCoin Blog for more interesting educational crypto content. All the best!
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Notice: KuCoin does not provide financial advice. Please do your own risk assessment when deciding how to invest in cryptocurrency and blockchain technology.
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