Bitcoin price has faced a slight retracement since the $16,500 highs, the on-chain fundamentals remain bullish
Bitcoin price has been facing a slight pullback since its high $ 16,500 set a few days ago. At press time, Bitcoin fell to $ 16,000, while the previous low was $ 15,700. Even so, analyst Willy Woo thinks the on-chain fundamentals are still up.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price still has the ability to increase in price
Bitcoin has been facing a slight pullback since a high of $ 16,500 set a few days ago. Analysts are concerned that the drop is the start of a move so much stronger than the decline.
But according to analyst Willy Woo, there is no major reason for concern. He admitted that Bitcoin’s short-term technicals are in a bearish state, with the 4-hour relative strength index divergence down and Tom Demark Sequential 9 on the 8-hour chart. Even so, he added that what’s really important, the fundamentals on the chain, remains optimistic.
Woo particularly emphasized two on-chain trends that are taking place:
- An increase in the number of Bitcoins sent from exchanges to client wallets
- An increase in the number of new and active users of the Bitcoin network
He stated:
Weekend trading setup:
Shaking off some bearishness technicals (4h RSI div, 8h TD9).
Short and mid term on-chain fundamentals bullish, more coins scooped off exchanges, more users arriving.
Buy the dip scenario.
— Willy Woo (@woonomic) November 14, 2020
Woo is not the only bull that thinks Bitcoin will continue to rise in value in the coming days.
Crypto trader Impermanent Capital recently commented on BTC’s price action, arguing that a move to $ 17,000 or $ 18,000 could occur soon.
He stated:
“I think there’s a decent chance bitcoin breaches $17k and even into $18k in the next 10 days (next weekly candle). We are due for a decent mid timeframe blowoff and chill for a bit and wicking into the ATH cluster just feels so right… The path to $18k or ATH wick seems the path of least resistance. Nobody wants to sell until then and everybody is buying dips. The easiest way to create market balance is to do it quickly then let the market chop around a bit.”
The same trader who predicted Bitcoin would see a V-shaped reversal in March recently shared the chart below, showing a move to $ 17,000.
The lowest price of #BTC annually, this is the price you need to pay attention to.
- 2010: $ 0.06
- 2011: $ 0.29
- 2012: $ 4
- 2013: $ 13
- 2014: $ 309
- 2015: $ 177
- 2016: $ 358
- 2017: $ 775
- 2018: $ 3,214
- 2019: $ 3,385
- 2020: $ 4,106
The current price: $ 16.067.
You can see the Bitcoin price here.
Read more:
- Bitcoin Price Retracement Is Likely As On-Chain Trends And Technical Trends Seem To Have Begun To Favor Bears
- Many Analysts Think That Bitcoin Price Is Overbought, Hence The Expectations Of A Drop In The Short To Medium Term