Bitcoin Climbs to $16,450 as More Analysts Warn of Potential 40% Pullback
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(Kitco News) – The cryptocurrency market welcomed the sight of green on Tuesday as worries related to unrest in China faded from the minds of crypto traders who have started wading back into the market following the FTX-inspired slump.
Traditional markets were not so lucky as the protests in China had far-reaching consequences for global markets. At the closing bell on Tuesday, both the S&P and Nasdaq ended in the red, down 0.16% and 0.5%, respectively, while the Dow looked to be up 0.01% for the day.
Data from TradingView shows that Bitcoin (BTC) bulls are managing to thwart an attempt by bears to crush BTC back below the $16,000 support and push the price to a midday high of $16,540 before entering consolidation near $16,450.
BTC/USD 4-hour chart. Source: TradingView
The resilience of the bulls was touched upon by Kitco senior technical analyst Jim Wyckoff, who noted that “BC bulls have stabilized prices since hitting a two-year low last week.”
That said, they need to remain resilient if they want to continue pushing higher as “BC bears still have the overall technical advantage in the near term,” Wyckoff warned. “However, the recent sideways price action on the daily chart favors the bulls, to begin to suggest that a near-term market bottom is in place.”
Potential for a 40% drop in Bitcoin
While many crypto fans have taken to Twitter to proclaim that the bottom is in for Bitcoin and that it’s only up from there, Mobius Capital Partners co-founder Mark Mobius warned that the top crypto could still fall 40% from its current price during an interview with Bloomberg News.
According to the investment legend, his next target for Bitcoin is $10,000, which represents a little more than 40% decline from today’s price of $16,450. He also noted that he would not invest his own money or client money in digital assets, as “it’s too dangerous ».
However, that doesn’t mean he thinks cryptos are doomed, as the asset class has gained a certain level of resilience over the years.
“But crypto is here to stay as there are more investors who still have faith in it,” he said, adding “It’s amazing how Bitcoin prices have held up” despite the FTX fallout.
The price estimate from Mobius is largely consistent with what popular chain analyst Willy Woo suggested is the “max pain” level for Bitcoin in case it goes lower.
#Bitcoin the bottom is approached under the Max Pain model.
Historically, BTC price reaches macro cycle bottoms when 58%-61% of coins are underwater (orange).
Green shading adjusts for the coins locked in the GBTC Trust. pic.twitter.com/haIcKlQ3M3
— Willy Woo (@woonomic) 26 November 2022
Altcoins climb higher
A sea of green was a welcome sight in the altcoin market as the vast majority of tokens in the top 200 saw their prices increase on Tuesday.
Daily performance in the cryptocurrency market. Source: Coin360
Top gains of the day included an 18.83% gain for Ribbon Finance (RBN), a 13.37% gain for Mask Network (MASK) and a 10.91% gain for Huobi Token (HT).
The total cryptocurrency market cap is now $835 billion, and Bitcoin’s dominance rate is 37.9%.
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