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Bitcoin (BTC) Price Follows Bearish Trend, Bigger Crash Incoming?

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VOC, Voice of Crypto, Crypto, Bitcoin, BTC

Key Insights

  • Bitcoin’s price action over the last few weeks has kept traders and investors on their toes.
  • The bears have severely hammered bitcoin, crashing its market cap from its 400B high to 348B, where it now sits.
  • Over the last day, the cryptocurrency has fallen by more than 10% and has canceled all its gains since late October.

 

Bitcoin’s price action over the last few weeks has kept traders and investors on their toes, as everyone expects the cryptocurrency to trade higher. However, the chances of the cryptocurrency moving further to the upside have been bashed by the price action over the last few days.

Between 4 November and 6 November, the cryptocurrency‘s price rose by 6%, hitting one of the highest peaks it has managed in seven weeks.

However, after managing to rise to the $21,480 zone over the weekend, BTC entered the new week on a negative note and has even fallen by a staggering 9% over the last day to the $17,000 zone.

The bears have severely hammered BTC, crashing its market cap from its $400 billion high to $348 billion, where it now sits.

Bitcoin Falls To Lowest Point in Two Years

BTC crashed heavily to $17,166, marking one of the lowest points the cryptocurrency has hit in the last two years.

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According to Santiment, the market intelligence and on-chain data collection platform, several traders opened short positions when bitcoin started to fall, expecting the cryptocurrency to drop further downwards.

Instead, bitcoin reversed and started to correct itself. The resulting price action of the cryptocurrency caused massive liquidations across the market.

Chart showing massive liquidations, according to Santiment, VOC, Voice of crypto

Chart showing massive liquidations| Source: Santiment

According to Santiment, the crypto exchange FTX has seen the highest number of bets against the price of Bitcoin since June this year, while DyDx has the highest number of traders betting against bitcoin since August.

According to Bitcoin liquidation data collected from CoinGlass, the bitcoin market saw about $234 million in liquidations over the last 24 hours.

Bitcoin liquidation data, VOV, Voice Of Crypto

Bitcoin liquidation data | Source: Tradingview

CoinGlass also shows that liquidations are still ongoing, with almost $2 million leaving the market in the last hour.

BTC Price Analysis: More Dip Incoming?

After rising to the crucial $21,500 support over the last few weeks, the bitcoin price was rejected by this level and started to plummet.

Chart showing price decline and RSI on Bitcoin, VOC, Voice of crypto

Chart showing price decline and RSI on Bitcoin | Source: Tradingview

Over the last day, the cryptocurrency has fallen by more than 10% and has canceled all its gains since late October.

The RSI has fallen in a straight line and is now headed straight for the oversold zone.

Chart showing potential target on Bitcoin (blue line), VOC, Voice of crypto

Chart showing potential target on Bitcoin (blue line) | Source: Tradingview

At the time of writing, the cryptocurrency is worth about $17,800 and shows no signs of a reversal.

If the cryptocurrency continues to decline under the influence of its bears, the next support level would be the $16,000 zone or even lower.

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Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate data. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

Jim Haastrup is a freelance blockchain and metaverse writer. He helps founders, investors, startups, crypto, and blockchain enthusiasts connect with their audience and win investment through the written word.

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