Is this the beginning of a Bitcoin ‘Blow-Off Top’ or simply a short break?
Last Updated on 27 November 2024 by CryptoTips.eu
Ever since this weekend, Bitcoin has been trending lower (and dragging the rest of the major crypto coins down with it). Yesterday I briefly saw $91k in the afternoon and at the time of writing the largest digital currency is trading around $93,300.
Analysis
Is this the start of the dreaded ‘Blow-Off top’ or are we just taking a short break. A brief analysis of the possibilities.
Twice in the past week I wrote about the possibility that we might see a blow-off top (a drop of more than 10-15% after a rapid rise in just a few weeks).
After Bitcoin made a meteoric move higher ever since Donald Trump’s victory became clear in the night of November 5-6, the price of the largest digital coin rose from $67k to a high of $99k in just two weeks, or an increase of almost 40%.
Panic
Whales (individuals or entities that own more than 10,000 bitcoins) therefore started a slow sale since the middle of last week. From the moment we traded above $92,000, most of the buying was done by smaller crypto wallets, while the larger wallets started taking profits, hoping to re-enter at a lower price.
The last time we observed this type of behavior was after Bitcoin set a new All Time High during the 2017 and 2021 bull runs. Back then Bitcoin fell by around 25 to even 35% in the following weeks during the respective ‘Blow-Off Top’.
Pay close attention to the $70,000 support level and how quickly we move back up during any panic dips where whales try to shake out smaller investors.
It is too soon to call this a blow-off, but if we go down two or three more days and descend underneath $80,000 again, it sure is one.
