According to one analyst, individual traders repeat past mistakes over and over. Analysis concludes as bulls smoke late Bitcoin (BTC) and Ethereum (ETH) shorts. We have compiled analysts’ BTC forecasts and analyzes for our readers.
Dollar lurks as bitcoin price recovers
cryptocoin.com As you follow, leading crypto Bitcoin (BTC) jumped to local highs of $21,078 overnight. This move was enough to clinch the new highs of six weeks. BTC traded above $21,000 for the first time since September 13. Bitcoin has entered a consolidation phase after its initial journey to $21,000.
The ensuing retreat was modest in character. Bitcoin didn’t even test $20,000 before climbing higher once again. At the end of the Wall Street trading week, BTC saw its price action follow US equities. The S&P 500 and the Nasdaq Composite Index ended October 28 with increases of 2.5% and 2.9%, respectively. In his latest Twitter post, popular analyst Crypto Capo put forward an existing theory of how short-term price action will unfold. ‘Same’ summarized alongside a chart showing potential up and down target levels.
BTC caption / Source: Crypto Capo / TwitterAnother analyst, John Wick, warned that US dollar pressure could return to risky assets. Therefore, he drew attention to a cautious macro note. He commented on a chart of the US dollar index (DXY):
So that’s a bad combination leading up to the Fed announcement on Nov.
US dollar index (DXY) explanatory chart / Source: John Wick/ TwitterWick referred to the Federal Reserve’s announcement of interest rate hikes next week. These were expected to match the 0.75% gain in September.
ETH liquidations keep coming
It seems that the bulls are still skeptical of their ability to generate more profits. In this environment, trader liquidations increased once again during the day. Coinglass data showed that shorts hit $21,000 to return. It also revealed that the total for October 29 was $95 million. In contrast, the previous day only saw $14 million in liquidated shorts, while October 25 and 26 together gave $661 million.
Bitcoin liquidation chart / Source: CoinglassFor liquidations affecting Ethereum (ETH) shorts, analyst IncomeSharks said, “Individual all do the same thing. Then they wonder why it didn’t work at all. Record the shorts at the bottom, the purges at the bottom. Follow the herd and you are slaughtered,” he said. ETH short liquidations on October 29 were $240 million at the time of writing. This seems to overshadow the sum of the previous days.
ETH liquidation chart / Source: Coinglass3 reasons why bitcoin price will drop soon
After a long hiatus, Bitcoin is consistently showing signs of strength with no downward curve. However, a Bitcoin price drop could always be just around the corner, especially in the current bear market scenario. In the current range, BTC maintains an impressive weekly gain of around 9%. However, certain on-chain indicators point to a possible Bitcoin price drop in the short term. On the other hand, some of the BTC investors hope that a bull run will start with this rally. Crypto analyst Anvesh Reddy shares the following analysis.
BTC saw great liquidity on exchanges at $ 21,400. This is a potential sign that the market is expecting a local bottom at that level and then a price drop. Also, it’s possible for big investors to want to short to make a profit in case of a price drop. According to Crypto Quant data, large amounts of Bitcoin were transferred to exchanges in a short time.
Overall, there is high capital flow in terms of BTC in the current scenario. It is possible to see this clearly from the increasing open interest in the BTC derivatives market. Also, stablecoins have also been sent to exchanges recently, as a potential sign of investors looking to go short. It is also possible for investors to want to take advantage of the price correction opportunity.
