Bitcoin (BTC) experienced a classic correction after Wall Street opened on November 16, and the familiar BTC price trend continues.
Analysis: The door is open for further Bitcoin price correction
Data comes from Cointelegraph Markets Pro and trading view Bitcoin fell to $36,470, losing more than $1,000 on the day.
The situation closely mirrors events from earlier this week, where bulls failed to break out to new highs for support and experienced a prolonged liquidation.
The day saw less activity, with around $21 million in BTC longs being wiped out at the time of writing, according to data from monitoring resources coin glass. On November 14, this number reached $120 million.
Commenting on the current situation, market participants pointed to the repetitive nature of Bitcoin price action, making new highs and deeper retracements possible.
“While I maintain that the market will correct, we still cannot rule out the possibility of another attempt at the $38,000 to $40,000 range,” said on-chain monitoring resource Material Indicators wrote In part of his latest X post.
It added that news about the first Bitcoin spot-price exchange-traded fund (ETF) in the United States “could be a catalyst for such a move,” but that time was running out due to regulatory time constraints.
The accompanying BTC/USDT order book liquidity snapshot shows sell-side liquidity reaching $38,000, while replenishing bid volume was only $33,000.
Horse, a popular anonymous trader, said: “If we calculate based on the number of pending orders waiting to be executed, the path of least resistance for BTC is to the downside.” continue on this topic.
“My thought is that the recent rally was easy because liquidations left empty funds and anyone waiting for a dip was passively long in the market.”
Weak dollar boosts cryptocurrency outlook
The day’s macro picture was muted as renewed weakness in the U.S. dollar offset the recovery from the Nov. 14 plunge.
Related: $48,000 Is Now a ‘Reasonable’ BTC Price Target — DecenTrader’s Filbfilb
This was aided by U.S. inflation data, which was more positive than expected and a pleasant surprise for risk assets.
The U.S. Dollar Index (DXY) is back around 104, close to its lowest level since early September.
“The U.S. dollar index got slaughtered today, I would say I’m surprised, but I’m not surprised, the stock price is down a lot,” said popular trader Brentz. reacted Go to the previous step.
“Don’t underestimate the benefits of this for cryptocurrencies.”
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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