Why a Bitcoin Pullback Could Result in a Drop to $11,500

Bitcoin has held above $13,000 surprisingly well. Analysts fear that the coin could retrace, though. An analyst noted that there is a confluence of fundamental and technical reasons why Bitcoin is weak. Another says that the coin could drop as low as $11,500 in a retracement. He noted that around that level lies a confluence […]
Nick Chong
Posted by Nick Chong November 2, 2020 2 Mins Read
Bitcoin has held above $13,000 surprisingly well. Analysts fear that the coin could retrace, though. An analyst noted that there is a confluence of fundamental and technical reasons why Bitcoin is weak. Another says that the coin could drop as low as $11,500 in a retracement. He noted that around that level lies a confluence […]
  • Bitcoin has held above $13,000 surprisingly well.
  • Analysts fear that the coin could retrace, though.
  • An analyst noted that there is a confluence of fundamental and technical reasons why Bitcoin is weak.
  • Another says that the coin could drop as low as $11,500 in a retracement.
  • He noted that around that level lies a confluence of important technical levels, making it a likely level for Bitcoin to bounce if it reaches there.

Bitcoin Could Drop as Low as $11,500 in Pullback, Analysis Shows

Bitcoin has held above $13,000 surprisingly well, especially in the face of those saying that this is just a fakeout to the upside. But analysts are not counting out the chance that the cryptocurrency undergoes a retracement after rallying 25% in two weeks.

One historically accurate crypto-asset analyst thinks Bitcoin could drop as low as $11,500 in a retracement. He noted that around that level lies a confluence of important technical levels, making it a likely level for Bitcoin to bounce if it reaches there.

The analyst listed the following levels in his analysis:

  • 61.8% Fibonacci Retracement of the entire move higher
  • 61.8% Fibonacci Retracement of the October monthly candle
  • An upward trendline.
  • A monthly support level
  • And the top of the past range (past range as in September and early October’s price action)

As aforementioned, this trader is one that has been historically accurate with his calls. At the end of August, he predicted that the leading cryptocurrency was likely to drop towards $9,750. He was proven almost entirely correct in the coming weeks as the coin plunged as low as $9,800.

The same trader also predicted some of Bitcoin’s recovery over the past few weeks.

Image

Chart of BTC's price action over the past few months with an analysis by crypto trader Coiner-Yadox (@Yodaskk on Twitter). 
Source: BTCUSD from TradingView.com

Odds of a Bearish Reversal Increase

Analysts think that the chance Bitcoin reverses from here is increasing. As reported by Bitcoinist previously, One crypto-asset trader recently said that he thinks Bitcoin’s recent move higher while the CME futures were closed indicates a reversal is possible:

“I think bitcoin is putting in a temporary top. Price action to the upside when futures are closed gives me further indication that we’ll see a continued pullback into the election.”

Other traders have noted that with uncertainty about the election, Bitcoin could drift lower for the time being. This may have a detrimental effect on the altcoin market.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Why a Bitcoin Pullback Could Result in a Drop to $11,500
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