A bitcoin price correction pushed the crypto down to $17,250 which fulfilled analysts’ anticipation as the $20,000 all-time high proved too close yet too far to overcome. Bitcoin lost $1,000 in minutes on November 26 as the long-awaited correction hit the market at close to $19,500.
Data acquired from TradingView showed BTC/USD experiencing massive volatility overnight on Wednesday. After hovering around $19,500 in the day’s trading, the after-hours saw a period of bearish indecision that resulted in a steed sell-off. Bitcoin then regained some upside momentum bouncing from $17,250 and capped daily losses of almost 5%.
Most of the analysts had already warned that the latest gains were as a result of a pullback, among them being CNBC host Brian Kelly and trader Tone Vays who both recently predicted a plunge to $14,000.
In the meantime, other metrics have also pointed at a looming correction. Among them is the popular Crypto Fear and Greed Index, which has now remained at record high levels all through November.
Exchange Selling Pressure Creeps In
In this event, the downturn was less severe but it came in line with huge-volume investors depositing BTC coins to exchanges; presumably aiming to collect profits near Bitcoin’s $20,000 all-time highs.
The creator of on-chain analytics resource CryptoQuant, Ki Young Ju, summarized to Twitter followers:
“All Exchanges Inflow Mean increased a few hours ago. It indicates that whales, relatively speaking, deposited $BTC to exchanges. But long-term on-chain indicators say the buying pressure prevails. I still think we can break 20k in a few days.”
Bitcoin’s technical indicators support the bullish theory going forward. But, the mining difficulty is expected to record a 7.3% uptick in three days’ time and the hash rate continuing to grow. At the time of writing, BTC/USD circled $17,900 after a slight recovery from local lows.