Bitcoin (BTC), which extended its slide on Nov. 16, as BTC price action returned back to $60,000.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
Bitcoin closes the large CME gap
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD fell 8% from Monday’s highs of $66,000.
The pair traded at $60,350 on Bitstamp but was still at its lowest level since Nov. 6.
While leveraged traders felt the pain of the loss, there was optimism that the “shakeout” of derivatives trading positions was close to completion. There would be a resumption in upside.
Leverage shakeout close to complete$BTC pic.twitter.com/rQyfaT8HUd
Dylan LeClair (@DylanLeClair_ November 16, 2021
Bitcoin also managed to close the CME futures gap that was in place for more than a week. This is a classic move that had already been expected from the moment it appeared.
CME Bitcoin futures 1-hour candle charts showing gap Source: TradingView
Although previous arguments suggested a trip up to $59,000, there was no guarantee that the price would drop below $60,000 at the time of writing.
Peter Brandt, Trader, was looking for potential buying opportunities and revealed that he desired an entry level closer to $50,000.
He said in part of his Twitter comments, “I am interested to buy BTC around $53,000, and ETH around $4,000.”
He said that he wasn’t a bear and didn’t expect Bitcoin to drop to these levels.
What is in a Month?
Others zoomed in on BTC while others remained calm, in a month defined by highs and volatility.
Related: Bitcoin is in a stalemate, but pro traders still anticipate $80K by January
For example, a return to monthly support would still put Bitcoin at $58,000.
“If BTC wants to retest the Monthly level (green )…), then it must do so at the monthly level. It would have to break down from the black uptrend line,” Rekt Capital, a fellow analyst and trader, said on Monday.
“Losing the trendline would likely confirm that this Monthly test will occur. Consolidation volatility is the only thing that will be available until then.
BTC/USD 1-day annotated candles chart (Bitstamp). Source: Rekt Capital/ Twitter