Analysis: Door open to deeper BTC price correction
Bitcoin (BTC) experienced a 4% dip in price after the Nov. 16 Wall Street open, continuing the pattern of recent BTC price action. Data from Cointelegraph Markets Pro and TradingView showed that BTC descended to $36,470, a decrease of over $1,000 in a single day.
Similar to earlier in the week, where bulls failed to sustain new highs and faced significant liquidations, the market landscape remained consistent. However, the amount of BTC longs liquidated was lower on this day, with around $21 million wiped out compared to the $120 million on Nov. 14.
Market participants commented on the repetitive nature of BTC price action, highlighting the potential for both new highs and a deeper retracement. On-chain monitoring resource Material Indicators stated, "While I maintain my view that the market is due for a correction, we still can't rule out the possibility of another attempt at the $38k - $40k range." They also noted that news regarding the first United States Bitcoin spot price exchange-traded fund (ETF) could be a catalyst for such a move, although time constraints may hinder its implementation.
Furthermore, the macro picture on the day saw a weakening U.S. dollar, which offset a recovery from the significant drop on Nov. 14. Positive U.S. inflation data contributed to the dollar's weakness, with the U.S. dollar index (DXY) near its lowest levels since September.
Popular trader Bluntz reacted to the situation, stating, "DXY got slaughtered today, would say I'm surprised, but I'm not really, going much lower. Don't underestimate how GOOD this is for crypto."
It is important to note that this article does not contain investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.
