Bitcoin stages ‘picture-perfect rebound’ at $58.5K as crypto liquidations top $875M

After a breakup, Bitcoin (BTC), recovered more than $60,000 in Nov. 16, and climbed to close to $58,500.

BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView

Daily liquidations close to $1 billion

Cointelegraph Markets Pro and TradingView data showed that Bitcoin/USD was recovering from losses. It even surpassed 11% at one time.

After an overnight slowdown, however, buyer support returned — but not before crypto liquidations reached $875 million within 24 hours.

Chart of crypto liquidations. Source: Coinglass

In the meantime, $58,400 was sent to Michael van de Poppe, a Cointelegraph contributor. This is to prevent any further corrections.

He warned that if we fall below, it will be very painful. Then, we’ll have a quick correction back to the low $50,000 area in which we’re testing some lower levels.

Van de Poppe was a rare and cautious voice that day. Market participants and analysts are still satisfied with the current price action.

TechDev tweeted that Bitcoin’s relative strength (RSI) had reset at $61,500 on daily timeframes to the level it was at when BTC/USD traded for $40,000.

“BTC successfully tests $58700 support. Rekt Capital also added: “Picture-perfect rebound.”

Separately, a Twitter post described the market’s stronger reaction to the events of the day than to the deeper corrections that have been seen in recent months.

#BTC is only pulling back -15% this Month. Remember that $BTC fell -25% in September before hitting new All Time Highs. This current retrace seems shallower than the September one, but the emotional reaction to it seems to be greater#Crypto#Bitcoin
— Rekt Capital (@rektcapital) November 16, 2021

Return of the “Double Bubble”

Charles Edwards, CEO at Capriole Asset Management, said that the new supply delta metric showed “very bullish” readings.

The difference in the BTC supply held short-term and long term holders is called the supply delta. It is now showing a rare bullish streak and a similar picture as 2013’s behavior. This year was known for Bitcoin’s double bubble, or double top.

“Bitcoin Supply Delta looks very bullish. Edwards stated that the vast majority of similar readings today were followed by substantial price appreciation.

The 2013 double bubble is the most comparable reading today in terms of price action, profile, and value.

Annotated chart of the Bitcoin supply delta. Source: Charles Edwards/Twitter