Currently, Bitcoin (BTC) is aiming to reclaim the $35,000 mark, a significant resistance level for the maiden cryptocurrency. Analysts argue that maintaining sustained gains above this position could pave the way for further advances.
Amid the short-term price gains, a section of the market believes that Bitcoin is poised for another significant price correction before rallying.
However, on November 4, a crypto trader and analyst known by the X (formerly Twitter) pseudonym Thescalpingpro observed that the likelihood of Bitcoin correcting is impossible, as the triggers for lower price levels have already occurred.
Bitcoin price analysis chart. Source: Thescalpingpro
Can Bitcoin correct to $12,000?
He dispelled notions of a drop to $12,000, asserting that the current upward trend represents a vertical accumulation phase before an anticipated parabolic rise.
“People who are still calling for lower prices are in disbelief as the black swan event they are waiting for has already happened,” he said.
Notably, as per the analyst, the previous cycle’s Black Swan event, the COVID-19 crash, had a profound impact on global financial markets, including the cryptocurrency sector. Bitcoin experienced a sharp decline during this period.
The collapse of FTX, which sent shockwaves through the crypto community, initially led to a drop in Bitcoin’s value to $15,500. However, Bitcoin has recovered, surging by an impressive 130% since then.
Indeed, the Bitcoin rally has been fueled by news regarding the potential launch of a spot Exchange-Traded Fund (ETF), a crucial factor for attracting institutional capital to the cryptocurrency market.
However, there is a consensus that ETF approval does not guarantee a bull run, as Bitcoin is still affected by other factors, such as interest rates and inflationary pressures.
In the meantime, Bitcoin has struggled to sustain levels above $35,000. Analysts suggest that traders may have taken profits from their BTC holdings and shifted towards altcoins, driving up their prices.
Bitcoin price analysis
At the time of writing, Bitcoin was trading at $34,743, showing daily gains of approximately 1%. On the weekly chart, Bitcoin has been trading in a consolidated pattern with gains of about 1.7%.
Bitcoin seven-day price chart. Source: Finbold
Elsewhere, a review of technical indicators indicates that bullish sentiments dominate Bitcoin. A summary of the one-day gauges retrieved from TradingView aligns with a ‘buy’ sentiment at 14. Moving averages indicate a ‘strong buy’ at 13, while oscillators are ‘neutral’ at 8.
Bitcoin technical analysis. Source: TradingView
As it stands, the $35,000 price level continues to serve as a significant barrier to upward movement, and breaching the position will open room for further gains.
Disclaimer:The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
