On November 28, the price of the world’s largest cryptocurrency, Bitcoin, has been consolidating over $17,000, following a major correction from $19,400. According to traders, Bitcoin will see another steep pullback in the near term. There are three main reasons why traders expect more profound decline to happen:
1) Historical cycles.
2) the Fibonacci Sequence.
3) The record-high open interest of the futures market.
The dominance cryptocurrency frequently witnessed 20% to 30% declines in part bull markets like the rally to almost $20,000 in 2018. Although the rally continued afterward, major corrections happened as the derivatives market became full.
According to some traders, Bitcoin’s price should correct in a range of $13,800 – $14,500 if a similar pattern occurs. However, some technical await a worst-case scenario where the largest cryptocurrency declines to the top of the August 2020 rally, which would put Bitcoin’s price at nearly $12,468.
Moreover, a pseudonymous trader registered as Salsa Tekila announced that BTC’s technical outlook is relatively straightforward. If the dominant cryptocurrency increases over $17,500 and stays over it, the trend becomes bullish. However, if Bitcoin remains under $17,500, a decline to the $11,000 to $13,000 range should not be expected.
Furthermore, it has to be mentioned that traders are pinpointing the 0.618 level using the Fibonacci sequence as a potential area of interest for buyers.
Furthermore, Bitcoin’s price tends to decline when the BTC futures market’s open interest stays over $1 billion.
Binance Futures, CME and OKEx, have now hit an all-time high open interest
Skew announced that the open interest across major futures exchanges currently surpasses $1 billion. The three largest Bitcoin futures markets, Binance Futures, CME, and OKEx, have now reached an all-time high open interest. Binance Futures hit $0.94 billion, CME reached $0.93 billion, while OKEx touched $1.4 billion.
According to some traders, Bitcoin could rally to $18,000 before any pullback or see a continuation of the general uptrend to record levels.
A full-time trader at the Amsterdam Stock Exchange, Michael van de Poppe made a statement earlier today, according to which the range low for Bitcoin price is currently holding, which is over $16,000, and this may result in a relief rally to $18,000. Moreover, whale clusters also point that the $16,000 area remains a strong support level.
Additionally, another pseudonymous trader Crypto Capo reported that Bitcoin could first see $18,000 before another significant decline.
