Bitcoin
Analyst: Bitcoin Likely to Plunge Towards $12,000 as Top Signs Emerge
Cole Petersen | Nov 07, 2020 | 16:08
- Bitcoin has seen a slight retrace this morning, with bulls being unable to break above the immense selling pressure that exists around $16,000
- Today’s move lower has been somewhat slow and has yet to force the crypto below any crucial level
- One trader is now offering a somewhat grim outlook on the cryptocurrency, noting that he is expecting it to see one more impulse higher before topping and posting massive losses
- He is particularly looking for a move towards $17,000 before BTC loses its momentum and dives towards the $12,000 region
Bitcoin and the entire crypto market have been struggling to maintain their momentum, with Ethereum failing to hold above $450 while BTC struggles to break $16,000.
That being said, the trend is clearly working in buyers’ favor, and until there is an intense selloff, it does seem as though this is only a temporary move lower.
However, one trader is offering a far grimmer outlook for the benchmark crypto, noting that he expects it to see one more impulse towards $16,000-$17,000 before the crypto losses its momentum and plunges.
He is watching for a move towards $12,000.
Bitcoin Struggles to Maintain Momentum as Sellers Step Up
At the time of writing, Bitcoin is trading down just over 1% at its current price of $15,350. This marks a notable decline from its recent $16,000 highs, but the selling pressure has been rather tempered.
It hasn’t formed a blow-off top and has mostly seen slow and decisive moves higher and lower.
Unless bears force it below $15,000, there’s still a strong likelihood that this dip will be followed by immense upside and possibly help trigger a move to fresh yearly highs of above $16,000.
Trader Claims Move to $12,000 is Imminent
While sharing his thoughts on Bitcoin’s price action, one trader explained that he is watching for a move towards $12,000 in the near-term.
Before this move takes place, he is expecting BTC to rally towards $17,000 first.
“If you’re longing BTC here, you are likely longing the tail end of an impulse that started at 10k. I am only looking for shorts on BTC here and expect we have one small leg higher before topping out between 16-17k.”
Image Courtesy of Credible Crypto. Chart via TradingView.
The coming few days should provide insights into Bitcoin’s mid-term outlook, as any further downside could strike a blow to the cryptocurrency’s technical outlook.
Featured image from Unsplash. Charts from TradingView.
