- Bitcoin price has produced a 7% relief rally this week.
- On-chain metric shows that most investors have a net unrealized loss which could suggest a bottom is near.
- Invalidation of the uptrend potential depends on $13,880 remaining as untagged.
Bitcoin price has recovered 7% of market value after breaking out to the downside following nearly two weeks of consolidation. The newfound low at $15,476 produced a bullish divergence on the Relative Strength Index(RSI), likely enticing traders to consider riding a long position throughout the weekend. Although the BTC price shows optimistic signals, overly-cautious risk management practices should be applied for the remainder of November.
Bitcoin price currently auctions at $16,617. The 7% relief rally has become a stalemate on Thursday, November 24, as the bulls and bears wrestle for grounds on smaller time frames. Still the chance for one more low before the month ends is remains a card on the table. The Relative Strength Index is now showing a subtle bearish divergence near the top of the 7% rally when compared to the previous range highs on November 10 and November 15.
BTC/USDT 1-day chart
Crypto Quants’ Net Unrealized Loss Indicator may provide context for what is happening underneath the peer-to-peer digital currency’s hood. According to the indicator, 61% of all Bitcoin purchases this month have resulted in negative returns. The last time the indicator portrayed a similar ratio was in November of 2018, when BTC fell from $4,000 to $3,200. After several months of range-bound trading, Bitcoin would eventually bottom and rally 200% towards $10,000 by 2019.
-638049221368873076.png)
Crypto Quant's Net Unrealized Loss Indicator
Based on these factors, Bitcoin price may be near the anticipated low. Still, risk management and Dollar cost averaging should be applied for sidelined investors looking to participate in the market. Based on previous outlooks, the bullish macro count would be in jeopardy if $13,800 is breached. If the level is tagged, the bears could drop into the $10,000 zone—a price level untraded since 2020.
In the following video, our analysts dive deep into the price action of Bitcoin, analyzing key market interest levels. -FXStreet Team
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin, Ethereum prices seesaw ahead of the Fed’s decision on rate hike
The US Federal Reserve is expected to raise interest rates while facing the tough task of tackling the banking crisis. Economists expect the central bank to increase its target rate range to 4.75% -5%, although there is a debate as some believe the Fed will not raise its rates at all. Bitcoin price rally steadied above the $28,000 level after yielding nearly 15% gains over the past week.
Aptos Price Forecast: This key level will determine if APT will rally 20% or crash 40%
Aptos price lacks directional bias as it consolidates below a critical hurdle. This level is key in determining where APT will head next. Investors need to wait for confirmation before making their decision. Aptos price rallied 554% between December 30, 2022, and January 26, 2023. This massive uptrend set up a local top at $20.40, resulting in a reversal that pushed APT down by 52%.
These altcoins could yield massive gains after Cardano and XRP prices rally this alt season
While large market capitalization assets Bitcoin and Ethereum hold steady, altcoins like Cardano and XRP have yielded double-digit gains overnight. Crypto experts believe Bitcoin’s rising dominance signals the popcorn effect is close, gains will continue spilling over in altcoins like Cardano (ADA) , XRP and Cosmos Hub’s ATOM.
XRP price tags $0.49 as Ripple bulls make a comeback
Ripple, one of the largest altcoins by market capitalization, witnessed a massive run up to the $0.49, ahead of the US Federal Reserve’s rate hike decision. The recent updates in the SEC v. Ripple lawsuit and the banking crisis have turned market participants bullish on XRP and cryptocurrencies.
Weekly Recap: Bank runs, stablecoin drama, Voyager bankruptcy hearing, threat to DOX Shiba Inu founder
US bank runs sent shockwaves through market participants, traders turned to Bitcoin and the “safe haven” narrative made a comeback. Binance’s $1 billion acquisition of bankrupt crypto lender Voyager is back on track with a ruling from a New York bankruptcy judge.