Bitcoin price has suffered over 10% loss, dropping from $19,600 to as low as $16,500 in the last 24-hours. According to Coingecko, the cryptocurrency is trading below $17,300, at the time of writing.
Additionally, Bitcoin broke its Fibonacci support level .236 and even went further below the Fibonacci support level .382, but somehow recovered.
The rapid BTC rally seen in recent weeks has come to a pause. Bitcoin price attempted to clear the $19,500 level but it failed, causing the price to decrease. More so, the price has also dropped significantly from the 100 hourly Simple Moving Average (SMA).
BTC technical indicators show that RSI (Relative Strength Index) for BTC/USD is currently well below the 50 level. Major support levels are at $18,000, followed by $17,620. If bitcoin stays above the $18,100 and $18,000 support levels, there could be an increase in the price.
Analysts note that the latest rally differs from 2017. This year, there are proportionally fewer retail investors and more institutions such as hedge funds and individuals investing in bitcoin. Moreover, analysts have noted that the sharp down correction in BTC price might be a result of the cryptocurrency being overbought.
If the line is above the 70 range, that means it’s overbought, and if the line is below the 30 range, it is oversold. In this case, the line is raised above, showing an overbought signal.
However, Ki Young Ju, creator of on-chain analytics resource CryptoQuan, remains positive. He notes that the BTC price will go high in the next few days. Notably, the Bitcoin price may still surge above $20,000.
All Exchanges Inflow Mean increased a few hours ago.
It indicates that whales, relatively speaking, deposited $BTC to exchanges.
But long-term on-chain indicators say the buying pressure prevails. I still think we can break 20k in a few days.
— Ki Young Ju 주기영 (@ki_young_ju) November 26, 2020
On another note, other cryptocurrencies that have fallen include Chainlink (LINK, -19.81%) and Cardano (ADA, -20.10%), at the time of writing.