Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Bitcoin: Is There A Correction Looming?

By FxPro Financial Services Ltd (Alexander Kuptsikevich)CryptocurrencyNov 12, 2020 07:49AM ET
www.investing.com/analysis/bitcoin-reached-16k-is-there-a-correction-looming-200544421
Bitcoin: Is There A Correction Looming?
By FxPro Financial Services Ltd (Alexander Kuptsikevich)   |  Nov 12, 2020 07:49AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Bitcoin again has managed to overcome $16,000. The demand growth became noticeable on Wednesday after consolidation with a slight downward impulse since the end of last week. The resistance level at $16K so far has been a serious enough barrier for the coin. The intraday dynamics clears a path for an optimistic short term outlook, with the lower time frame charts clearly showing purchases against the background of declines.

Bitcoin crossed 16K for the first time since Jan 2018
Bitcoin crossed 16K for the first time since Jan 2018

The price chart does not show any significant resistance levels up to $20,000, an important round level where Bitcoin was approaching back in late 2017. In the short term, it is worth paying attention to the possible weakening of the growth impulse. On the daily charts, the RSI above 80 is a signal level of overbought conditions.

High values for the indicator is not a problem for a bullish impulse, but the return of the index to the area below 80 can trigger powerful profit-taking, as has already been demonstrated three times so far this year.

The current price levels are peaks of almost three years, but fear of being an early seller in the middle of the rally is holding back sales. The pressure on the coin can be utilised by Chinese miners, who have completed the process of moving and kept their equipment off for quite some time, which previously corrected the difficulty of mining.

Bitcoin network difficulty corrected along with rising price
Bitcoin network difficulty corrected along with rising price

Judging by the consistent growth in market capitalization of the stablecoin Tether, which is often used as a source of Bitcoin purchases, increased demand from buyers has so far offset the downward pressure on the first cryptocurrency. Over the last month, USDT capitalization increased by almost $2 bln.

A source of concern for Bitcoin may be the Crypto Fear & Greed Index, which rose 15 points to "87" from last week, corresponding to the "extreme greed" mode. The indicator was around the current values at the end of June 2019, when Bitcoin reached the maximum of the rally, and then started its decline.

While waiting for $20K, it is worth paying attention to lower highs, which may well trigger profit-taking and push Bitcoin down significantly before launching the final stage of the bullish rally in 2020.

The FxPro Analyst Team

Bitcoin: Is There A Correction Looming?
 

Related Articles

Crypto Briefing
Cosmos, Fantom Aim To Recover From Market Volatility By Crypto Briefing - Jan 26, 2022

Cosmos and Fantom moved back into the green and now sit close to their previous all-time highs.Key Takeaways Cosmos and Fantom both suffered in the recent market downturn. Both...

Bitcoin: Is There A Correction Looming?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (3)
Olamide OG
Olamide OG Nov 21, 2020 9:00AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hwo can eand money
Olamide OG
Olamide OG Nov 21, 2020 8:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hwo far nah
sngcomedy etukudo
sngcomedy etukudo Nov 12, 2020 5:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
how can I eand money
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email