The price of Bitcoin has experienced significant selling pressure, falling an additional 3% to $35,000.
However, this indicates that Bitcoin, which peaked at $37,000 last week, has entered a significant retracement, causing investors to be wary of recent developments.
Notable Bitcoin Red Flags to Observe
The recent selling pressure results from Bitcoin whales cashing out in huge numbers over the past week.
Ali Martinez, a renowned crypto analyst, reported that Bitcoin whales began profit-taking on November 3, taking advantage of the BTC price increase from $35,000 to nearly $38,000.
More than 15 wallets containing over 1,000 Bitcoin either sold or redistributed their holdings during this period.
Ali Martinez, conversely, notes that the Bitcoin network has experienced a deceleration.
A combination of a BTC price increase and a network expansion delay raises concerns, indicating that the uptrend may be unable to maintain its momentum.
However, traders should be mindful of this adverse divergence between the price of Bitcoin and the network expansion, he further stated, as it constitutes an on-chain sell signal.
The current decline in the price of Bitcoin has caused it to surpass its critical support level of $36,400.
Meanwhile, breaking the subsequent support at $36,400 could result in an additional price decline to $30,200.
#Bitcoin has found stable support around $36,400, but if this level breaks, the next critical demand zones for $BTC are at $34,300 and $30,200. pic.twitter.com/5yY6fwbVq3
— Ali (@ali_charts) November 14, 2023
Favorable Developments Regarding BTC
The US CPI indicates that inflation has been declining, which has boosted the equity markets.
Analysts predict that Bitcoin may shortly follow the cue and may increase in value to $40,000.
Michael van de Poppe, a reputable analyst, stated that Bitcoin is seeking support, and the scenario in which a test between $34.8-35.2K could provide additional strength toward the highs remains valid.
#Bitcoin seeking for support.
Scenario is still valid, in which a test around $34.8-35.2K could give further strength towards the highs.
These dips are usually entry points for altcoins. pic.twitter.com/H2XdlMxLnW
— Michaël van de Poppe (@CryptoMichNL) November 14, 2023
Conversely, the SEC is scheduled to render its decision regarding the approval of a spot Bitcoin ETF on November 17.
Cathie Wood of Ark Invest observes that the probability of spot Bitcoin ETF approval has increased, citing engagements between the SEC, ARK, and BlackRock.