Bitcoin faces a pullback after rapid growth

Cryptocurrency experts believe that the significant increase in the value of bitcoin BTC $104,550.94 Bitcoin -2.74% Market capitalization $2.07 trillion VOL. 24 hours $3.46 billion shows an impulsive movement that will soon lead to a drop in the leading cryptocurrency to $ 70,000.

It is worth emphasizing that such conclusions are caused by the fact that on November 13, bitcoin briefly rose to a price above $ 90,000, which became a new historical high.

Data from Cointelegraph Markets Pro and Binance«>TradingView confirmed a new record for bitcoin at $ 90,240 on the Bitstamp exchange, which was recorded at the end of the day.

After several attempts to break through the $ 90,000 level, the bull market eventually succeeded — but only for a short time.

Due to the high level of fluctuations in the asset’s price (volatility), the psychological significance of the round number was combined with a lot of liquidity for sale and a market that, according to some experts, was already overheated.

«Bitcoin needs to slow down and build support at a new level,» said Keith Alan, co-founder of Material Indicators.

Liquidity (the ability of an asset to be sold quickly) at $ 90,000 is $ 80 million and the sell wall in the range of $ 100,000 — $ 177 million should slow the pace.

Analysts have warned that the current situation may persist in the short term. This may indicate that the price is unlikely to reach a new record in the near future.

Nevertheless, periods of euphoria may push the price up and refute this signal.

A Credible Crypto trader who predicted bitcoin would fall to $ 50,000 added that the market could show range-bound behavior before reaching potential upside.

• «I still don’t think this is the momentum move that many are seeing it as. Bitcoin has gone much higher than expected, which changes my attitude to trading,» he said.

It is noted that there are currently two scenarios:

• a big trap for the bull market;
• continued growth of bitcoin.

«In any case, I expect a few weeks of consolidation between $ 70,000 and $ 90,000,» the expert added.

Meanwhile, Willie Wu, the author of the bitcoin data analysis platform Woobull, explained these trends by linking them to liquidity levels and Fibonacci expansion.

He added that the area just above $ 100,000 will be critical for the price of bitcoin in the near future.