Bitcoin is hovering near $90,000 with market experts warning of a short term dip. Blockchain analytics firm CryptoQuant on November 16 highlighted signs of a “cooling” phase in the market, where Bitcoin may dip to $70,000 before regaining its bull run.
The cryptocurrency has risen by almost 13% over the past week. Despite this impressive rally, analysts like CryptoQuant contributor BaroVirtual caution that BTC’s next move could take one of two paths: Bitcoin could consolidate in the $87,000 to $93,000 range before turning bullish and breaking towards $104,000 to $120,000, or dip down to the $71,000 to $77,000 range temporarily and recoup again.
Whale Activity Surges Amid Predictions of Bitcoin Price Correction
This prediction rests at the core on BTC’s current seven-day MA gap of 19 percent compared to a 30 day MA. Intense buying pressure is clearly showing in this divergence but also points to an overextended rally that might need to pull back first before rising further.
As analysts debate a correction is on the way, BTC whales, the big players, are doubling down on their holdings. CryptoQuant’s data indicates an increase in the activity of whales, indicating a firm belief in long-term potential in bit coin despite short term volatility. But with whales accumulating aggressively near $90,000, BaroVirtual Says this only reinforces their belief in the bigger picture, bull market.
Some experts expect some temporary dip, others think BTC can reach the psychological $100,000 barrier and beyond. However, a few outliers warn of a steeper correction, and with price targets as low as $50,000 it looks as if we face even a more challenging correction.
Despite all these predictions, the state of the market’s underlying sentiment does not seem to be pessimistic. Any correction will be short lived, as whale accumulation is high along with increasing institutional adoption.
The coming weeks will see cryptocurrencies tested with BTC hovering near record highs. Whether it consolidates, corrects, or soars to new heights, one thing remains certain: While Bitcoin’s volatility and allure still have the financial world captivated, the tone is starting to change.
