Owing to this, Bitcoin may be poised to experience further pullbacks in the near term from whales’ profit-taking. Historically, a correction may not be out of place as in the previous bull cycles BTC plunged 30%–40% before continuing its rally.
BTC/USD Daily Chart
The second-largest crypto asset, Ethereum (ETH) wasn’t left out of the bloodbath as it plunged from its multiyear high of $623 to lows beneath $500 before a slight recovery. ETH trades at $503 at the time of writing.
Analysts postulate three likely scenarios for Bitcoin’s near term price. First, it could recover relatively quickly to $18,000. Second, it could continue its plunge to the next major support area at $13,700. Third, it could range, allowing the derivatives market to stabilize.
All Exchanges Inflow Mean reaches danger zone. Courtesy: CryptoQuant
Another trader with the moniker “Beatlorion” said a drop below $15,000 has become a possibility. This may imply that BTC may test the $14,000 zone which should serve as crucial support, as it marked the top of the bull cycle in June 2019.
A trader also said that Bitcoin would likely drop or consolidate for a week before it begins an upward move, this was also corroborated by another set of market analysts who believe that BTC extended decline may hit $13,000 before the bearish momentum wanes and gives way to another massive bullish wave.
To sum it up, no matter the declines, the long-term Bitcoin price outlook remains bullish amid money printing, inflation, and U.S Joe Biden’s presidency.
For the largest Altcoin, the upcoming Ethereum 2.0 launch on December 1st is a bullish one for ETH. Analysts believe ETH may be en route $800 after this widely proclaimed event.
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