HomeCryptocurrencyBitcoinNew data suggests leverage shakeout - Can Bitcoin hold $60K?

New data suggests leverage shakeout – Can Bitcoin hold $60K?

-

Though the skyrocketed price of Bitcoin for sometime crossed $60,000 but on Nov 16th Bitcoin (BTC) is sliding down, bullish analysts say no problem but 8% loss is very painful for long holder.

Bitcoin finally closes large CME gap

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD coming down 8% from Monday’s local highs above $66,000.

Bouncing at $60,350 on Bitstamp, the pair nonetheless traded at its lowest since Nov. 6.

As leveraged traders felt the pain, optimism remained that the “shakeout” of positions on derivatives exchanges was nearing completion, with a resumption of upside taking over thereafter.

Image
Leverage shakeout close to complete

Bitcoin further managed to close a CME futures gap in place for over a week, a classic move that had been anticipated from the moment the gap appeared.

CME Bitcoin futures 1-hour candle chart showing gap. Source: TradingView

While previous arguments even favored a trip to $59,000, however, the chances of a drop below $60,000 remained at the time of writing. 

Trader Peter Brandt, eyeing potential buying opportunities, revealed a desired entry level of closer to $50,000.

“I am interested in buying BTC around $53,000 and ETH around $4,030,” he said as part of Twitter comments.

He stressed that he was “not a bear” and did not necessarily expect Bitcoin to fall to those levels.

What’s in a month?

Others meanwhile zoomed out on BTC, in a month which has been defined by all-time highs and the associated volatility.

A return to monthly support, for example, would still place Bitcoin at $58,000.

“If BTC is to go for a retest attempt of the Monthly level (green)… It would need to break down from this black uptrend line,” fellow trader and analyst Rekt Capital commented on an explanatory chart showing the levels on Monday.

“Losing this trendline would probably confirm that this Monthly retest will happen. Until then, just consolidation volatility.”

A return to monthly support, for example, would still place Bitcoin at $58,000.

“If BTC is to go for a retest attempt of the Monthly level (green)… It would need to break down from this black uptrend line,” fellow trader and analyst Rekt Capital commented on an explanatory chart showing the levels on Monday.

“Losing this trendline would probably confirm that this Monthly retest will happen. Until then, just consolidation volatility.”

BTC/USD 1-day annotated candle chart (Bitstamp). Source: Rekt Capital/ Twitter

Source: coinfeeds.io, tradingview.com, cointelegraph

LATEST POSTS

Cyprus registers Binance as a cryptocurrency service provider.

Binance, a cryptocurrency exchange, will be able to provide services for virtual currencies in Cyprus as a result of the platform's recent registration with the...

More than 24,000 ATMs in Brazil will offer USDT through Tether and Smartpay.

Usdt, the largest dollar-pegged stablecoin on the market, was created by Tether, a company. Tether recently announced that more than 24,000 ATMs in Brazil will...

To solve the blockchain modularity issue, Celestia raises $55 million.

The project Celestia, which seeks to address the alleged centralization issue in the current monolithic blockchains, has announced the completion of its most recent funding...

Hong Kong considers removing the “Professional Investor-Only Requirement” and allowing retail investors to trade cryptocurrency.

Securities and Futures Commission (SFC) of Hong Kong's director of licensing and head of the fintech division both confirmed that the regulator is taking into...

Follow us

13,033FansLike
3,912FollowersFollow
0SubscribersSubscribe

Most Popular

spot_img