Bitcoins (BTC) rise above $20,000 will have to wait as the price saw a strong correction which and turned away from reaching a new all-time high.
Data suggests that whales decided to book profits when Bitcoin was close to $19,000 and this pulled the price lower. This fall could have resulted in the liquidation of overleveraged positions in the futures market and further aggravated the decline.
The current correction is a healthy sign as the crypto market was becoming overheated as several altcoins rallied vertically in the past week. While some altcoins have given back a large portion of their recent up-move, Bitcoin remains strong, suggesting that investors are buying into support at lower levels.
Daily cryptocurrency market performance. Source:
Galaxy Digital founder and CEO Mike Novogratz recently said that Bitcoin is attracting institutional investors because it is viewed as a hedge against the debasement of fiat currency. Novogratz suggests investors keep about 2 to 3% of their net worth in Bitcoin with a long-term objective as he believes BTC will be worth a lot more in five years.
However, traders should wait for the price to stabilize and form a base before buying because trying to catch a falling knife could be dangerous. Traders can watch the price action near the critical support levels and then consider buying if they hold steady.
Lets analyze the top-10 cryptocurrencies to spot the important support levels that may attract buyers.
Bitcoin (BTC) turned down from $19,458.56 on Nov. 25 and the selling intensified on Nov. 26, which pulled the price below the 20-day exponential moving average ($17,048) for the first time since Oct. 8.
Disclaimer: The content and views expressed in the articles are those of the original authors own and are not necessarily the views of Crypto News. We do actively check all our content for accuracy to help protect our readers. This article content and links to external third-parties is included for information and entertainment purposes. It is not financial advice. Please do your own research before participating.