Why analysts remain bullish on Bitcoin price despite recent pullback

  • Bitcoin price has begun consolidating after dropping 13% from its all-time high.
  • While the recent weakness incentivized a plunge below $60,000, analysts remain bullish on the future outlook of BTC.
  • The Bitcoin price correction may be short-lived, but the leading cryptocurrency could retest $58,000 before recovering.

Bitcoin price has plunged 10% since November 15 as the leading cryptocurrency’s momentum shifted to the downside. Although BTC is confronted by several technical obstacles, it appears that the flagship digital asset has secured reliable support to prevent further losses. 

Bitcoin price data offers optimistic forecast

Bitcoin price is now stuck in a tight range after the bulls failed to lift prices higher against the overpowering distribution of the sellers. The bellwether cryptocurrency fell sharply from its all-time high, penetrating below the psychological support level at $60,000. 

However, analysts continue to remain bullish on Bitcoin price as blockchain data suggests that the recent correction may be short-lived. The recent plunge in cryptocurrency prices seemed to have been related to excessive leverage being “flushed out,” according to Jan Wuestenfeld, an analyst at CryptoQuant.

Wuestenfeld added that as long as on-chain fundamentals remain unchanged, the medium-term outlook for Bitcoin price continues to be bullish. 

Joo Kian, analyst at Delphi Digital holds a similar view, stating that leveraged traders were victims of liquidations as prices declined. He added that open interest was at peak levels for most trading pairs before Bitcoin price plunged. Kian further highlighted that flushing out excessive leverage is healthy for markets over the longer term. However, he warned that it may take some time before trading activity recovers.

In addition, the Bitcoin 30-day MVRV, which shows the unrealized profit/loss of all the addresses that have acquired BTC in the past 30 days, suggests that the leading cryptocurrency is undervalued and may see a recovery.


BTC MVRV 30d ratio

Bitcoin price could retest $58,000 before a bullish bounce 

Bitcoin price is testing the reliability of multiple support levels before the bulls plan a comeback. The leading digital asset will discover an immediate foothold at the October 23 low, at $59,595, before dropping toward the 100 twelve-hour Simple Moving Average (SMA) at $59,130.

The governing parallel channel pattern on the 12-hour chart suggests that Bitcoin price could be trapped in consolidation in the near term. However, additional selling pressure could see BTC fall toward the lower boundary of the technical pattern at $58,435. Failure to hold the aforementioned support would see the flagship cryptocurrency plunge to the October 28 low at $57,807.


BTC/USDT 12-hour chart

If Bitcoin price manages to hold above the lower trend line of the parallel channel, BTC could see a shift in momentum to the upside. However, the leading cryptocurrency could be confronted with multiple obstacles before reaching the optimistic target at the upper boundary of the technical pattern.

The first hurdle for Bitcoin price is at the October 17 high at $61,750, then at the 50 twelve-hour SMA at $62,608. Bigger aspirations would target $63,698 at the October 22 high, then the 21 twelve-hour SMA at $64,106.


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.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

XRP price to pull a 180 as Ripple bulls come out of the woodwork

XRP price lacks volatility as it trades close to a crucial support level. While a major reason for this is its correlation with Bitcoin, a part of it also arises from the lack of interest among the investors for this coin. There is a good chance Ripple could see a brief uptrend that pushes it toward the immediate resistance barrier.

More Ripple News

MATIC price gives bulls another opportunity to undo recent losses

MATIC price has seen an increase in selling pressure that has undone most of its gains from the last week. The retracement has knocked Polygon down to a stable barrier that is likely to sustain the incoming bearish momentum, allowing bulls to make a comeback.

More Polygon News

Crypto.com upside limited to $0.54 as CRO faces multiple hurdles

A brief technical and on-chain analysis on Crypto.com price. Here, FXStreet's analysts evaluate where CRO could be heading next.

More Crypto.com News

Google prepares for a foray into crypto, plans to expand payment division

Google is planning to enter into the cryptocurrency space as the firm has hired a former PayPal executive to lead its payment division. The multinational technology company is laying out a broader strategy to team up with a wider range of financial services including digital assets.

More Cryptocurrencies news

BTC eyes retest of $50,000

Bitcoin price shows a resurgence of retail interest as it bounced off a crucial psychological level. The recent uptrend is preparing a base on a short-term time frame so BTC can kick-start a larger leg-up. Interestingly, on-chain metrics are lining up with the bullish outlook portrayed from a technical perspective. An uptrend now seems inevitable for BTC and, therefore, the larger ecosystem.

Read full analysis