Bitcoin (BTC), which fell below key support levels on Nov. 18, was a new test of bulls’ resolve.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
“Strong market-wide sales”
TradingView and Cointelegraph Markets Pro data showed that Bitcoin/USD had abandoned the $58,400 support. After multiple retests in the previous days, Bitcoin was trading at $57,000.
Despite the volatility and the challenge of the $60,000 mark the price dropped to $57,200 within the hour — its lowest level since Oct. 15.
Rekt Capital analyst and trader wrote that “strong market-wide selling” was going on in his most recent Twitter update.
“Undoubtedly, seller exhaustion lies ahead. In the short-term, look out for high volume bars on the sell-side. These bars indicate a trend reversal or strong selling.
Mid September saw a flurry of sellers exhausted, following the day that Bitcoin lost $10,000 per day.
Similar to the previous move, Nov. 18’s action caused a notable reversal of Bitcoin’s Spent OPR Profit Ratio (SOPR), which is a key metric for determining oversold prices periods.
Chart of Bitcoin SOPR. Source: Glassnode
Related: Bitcoin owners who bought at $20K refused to sell BTC at all highs — Most recent data
Strong hands are rewarded for their determination by an inliquid supply
Bitcoin was at the moment in search of a monthly bottom price.
Michael van de Poppe (Cointelegraph contributor) said that $56,000 was the threshold for a rebound.
He said, “If this is the case, relief rallies might be around the corner.”
Willy Woo, who was more optimistic, saw long-term investor purchasing as a sign of a bearish trend.
I think I’ll call this one “buying the dip” pic.twitter.com/57kmAtycGF
— Willy Woo, @woonomic, November 18, 2021
Bitcoin’s liquidity mirrored the mood, increasing in volume as prices fell. This is a sign that there was strong buyer interest during this week.