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Will Bitcoin hold $60K? Leverage shakeout 'close to complete,' data suggests

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 180 Views

8% daily losses are painful for longs but no problem for still-bullish analysts.

Bitcoin (BTC) extended its slide on Nov. 16 as BTC price action returned to test $60,000.

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

Bitcoin finally closes large CME gap

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD coming down 8% from Monday’s local highs above $66,000.

Bouncing at $60,350 on Bitstamp, the pair nonetheless traded at its lowest since Nov. 6.

As leveraged traders felt the pain, optimism remained that the “shakeout” of positions on derivatives exchanges was nearing completion, with a resumption of upside taking over thereafter.

Bitcoin further managed to close a CME futures gap in place for over a week, a classic move that had been anticipated from the moment the gap appeared.

CME Bitcoin futures 1-hour candle chart showing gap. Source: TradingView

While previous arguments even favored a trip to $59,000, however, the chances of a drop below $60,000 remained at the time of writing. 

Trader Peter Brandt, eyeing potential buying opportunities, revealed a desired entry-level of closer to $50,000.

“I am interested in buying BTC around $53,000 and ETH around $4,030,” he said as part of Twitter comments.

He stressed that he was “not a bear” and did not necessarily expect Bitcoin to fall to those levels.

What’s in a month?

Others, meanwhile, zoomed out on BTC, in a month that has been defined by all-time highs and the associated volatility.

Related: Bitcoin has stalled, but here’s why pro traders still expect $80K by January

A return to monthly support, for example, would still place Bitcoin at $58,000.

“If BTC is to go for a retest attempt of the Monthly level (green)... It would need to break down from this black uptrend line,” fellow trader and analyst Rekt Capital commented on an explanatory chart showing the levels on Monday.

“Losing this trendline would probably confirm that this Monthly retest will happen. Until then, just consolidation volatility.”
BTC/USD 1-day annotated candle chart (Bitstamp). Source: Rekt Capital/Twitter


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