On the 12-hour timeframe, the price of Bitcoin has dipped below the parabola. However, traders are not calling for a big correction yet.
Traders were saying over the weekend that BTC price overcame its parabolic uptrend which could be traced back to September. Now, as the dominant cryptocurrency eyes consolidation, technical analysts are preparing for a pullback.
If the rally would continue, after the weekly close, Bitcoin could still see a strong recovery. However, to avoid a potential downward correction, it would need to quickly re-enter the parabola.
Traders pinpoint $15,500 as the key level to maintain the bull run
Bitcoin kept on rallying without major corrections since early September. Historically, BTC saw 20 percent to 30 percent drops usually during a bull trends. If BTC fails to reenter the parabola, there is a possibility that a large pullback could take place.
A pseudonymous trader “Altcoin Psycho” shared a 12-hour Bitcoin price chart that suggests BTC is now 2-month the parabolic advance.
However, the trend does not necessarily mean that BTC would witness an intense correction in the near term. It rather indicates that as the markets cool down, a trend might form.
Moreover, John Bollinger, a long-time technical analyst discussed that Bitcoin is likely to consolidate or pull back. BTC is hovering in overbought territory, considering how BTC hovers at the top of the Bollinger Bands.
The variable is whales selling BTC
The Gemini exchange has recorded an unusually high deposits since November 10. Typically, this means, whales are taking a move to sell their holdings to take profits.
A pseudonymous analyst known as “Blackbeard” discussed that on November 10, an extremely high amount of $BTC has been transferred to Gemini wallets. He referred to CryptoQuant’s on-chain data.
In the near future, the selling pressure from miners and whales would stay as important factors if BTC struggle to recover.