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Bitcoin Will Move Like a “Bulldozer” Once It Gains Momentum, Claims Analyst

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  • Bitcoin’s price appears to have entered yet another consolidation phase as it trades between $11,400 and $11,600
  • Its present lack of momentum comes close on the heels of the strong move higher that it posted last week
  • The resistance above its current price level is quite intense, and this may mark an attempt from bulls to garner greater buy-side support
  • Where the market trends in the mid-term will likely depend largely on whether Bitcoin’s consolidation phase results in a breakout or a breakdown
  • One analyst believes that Bitcoin will move like a “bulldozer” once it can determine which direction it wants to trend next

Bitcoin and the entire cryptocurrency market have lacked momentum throughout the past few days.

This consolidation has come about closely following the series of strong upwards movements seen just a few days ago that helped end its previous consolidation phase and push it past the resistance it faced between $11,000 and $11,200.

One analyst does believe that the next big movement that BTC makes will provide it with lasting directionality.

He even notes that the benchmark cryptocurrency will move like a “bulldozer” once this next trend-defining move is made.

Bitcoin Consolidates Around $11,400 as Buyers and Sellers Reach an Impasse

At the time of writing, Bitcoin is trading down marginally at its current price of $11,410. This is around where it has been trading throughout the past few days.

Its inability to garner any momentum has come due to the intense selling pressure that sits around $11,600.

Each attempt to move past this level has resulted in strong rejections, which indicates that a break above this level would hold some serious technical significance.

The lower-$11,000 region does seem to hold some support for Bitcoin, and it will require some serious selling pressure for it to be broken below.

Analyst: BTC Likely to See a “Bulldozer” Move Once It Gains Momentum 

One analyst explained that the next movement made by Bitcoin could be critical for understanding its near-term trend.

He pointed to the ongoing volume compression seen by the crypto, noting that it indicates a massive move is on the horizon.

“BTC: 2nd major volume compression underway this year… Watch out for the bulldozer when this baby picks a direction,” he said.

Image Courtesy of Josh Olszewicz. Chart via TradingView.

The coming few days and weeks should offer analysts and investors insights into Bitcoin’s near-term outlook.

Featured image from Unsplash.
Charts from TradingView.





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Institutional money may propel Bitcoin to $250K in one year’s time, says macro investor

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Bitcoin may hit $150,000 by November 2021 according to Raoul Pal, founder and CEO at Global Macro Investor and Real Vision — And that would be the most conservative scenario. Pal believes that Bitcoin could even reach $250,000 due to the large amount of institutional money currently flowing into the Bitcoin market.

That is what, according to Pal, makes the latest Bitcoin rally fundamentally different from 2017’s crypto bubble, which is believed to have been driven mainly by retail investors.

According to Pal, most of Bitcoin’s additional supply is currently being absorbed by Paypal, Square – which recently adopted crypto services  – and Greyscale. He believes that the resulting supply squeeze is the catalyst for Bitcoin’s latest surge.

“I’ve never seen a market with this supply and demand imbalance before”, Pal said, pointing out the macro economic factors which are playing in Bitcoin’s favor.

Despite news on the coronavirus vaccine sparking hopes of a quick economic recovery, governments will likely need to release additional monetary stimulus to sustain their economies. That, according to Pal, will lead to a devaluation of fiat. He believes that this together with low interest rates will propel Bitcoin’s price to new highs.

“It’s life changing. No other asset has an upside of 5x, 10x, 20x in a short space of time.”, he stated.

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Bitcoin whale clusters show these are the strong support levels

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Since topping out at $19,484, Bitcoin price has struggled to reclaim the $17,000-$18,000 level. As the price continues to decline, traders are targeting key underlying support levels to determine where traders will buy if BTC price continues to fall.

The immediate support levels based on whale clusters are $16,694, $16,411, and $16,064. Below the $16,000 support, $15,355, $14,914, and $13,740 that could serve as macro support areas.

Whale clusters form when whales accumulate BTC and do not move their recently acquired funds. The clusters also indicate where whales last bought, signifying potential support areas.

Bitcoin whale clusters. Source: Whalemap

$16,411 is the short term level to watch for Bitcoin

The price of Bitcoin has been showing weakening momentum in the past 24 hours. Following such a major correction, some consolidation is to be expected as the price searches for stabilit.

One positive trend is that buyers have been aggressively defending the $16,411 support area, which is marked by whale clusters. This shows that there is sufficient buyer demand in the market to prevent a broader pullback, at least in the short term.

On Nov. 27, Bitcoin tested the $16,200 to $16,400 support range twice in a span of 22 hours. Both retests were met with a decent response from buyers, as BTC surged above $16,800 in both cases.

For most of the day, Bitcoin remained above $17,000 and peaked at $17,400, showing signs that BTC is regaining its momentum.

Still, some traders are not ruling out the possibility of BTC dropping to the lower macro support areas. A pseudonymous trader known as “Wolf” said the weekly chart is showing signs of overextension. As such, he said that the $13,000 region could get tested. The trader explained:

“Differently from $ETH, $BTC looks way over extended from the weekly 21EMA, still far from interesting support. My ideal entry would be the outlined major support @ 13k’s. Currently we might hold the 16213 weekly support, then head lower for an ABC correction.”

Another pseudonymous trader known as “Crypto Capo” suggested a similar trend. He said that he sees a scenario playing out where BTC rises to $18,000 and then falls to the $13,000 region.

Traders expect Bitcoin’s consolidation to last for weeks

Although there are bearish short-term predictions from long-time Bitcoin investors, some technical analysts say that consolidation could last a while.

Michael van de Poppe, a full-time trader at the Amsterdam Stock Exchange, said the market faced a healthy pullback. Following the correction, Poppe said that consolidation could last for several weeks. He said:

“Relax and zoom out, market is making a healthy correction and giving everyone a great opportunity to invest. Don’t be impatient, the market will make a natural bottom to confirm it’s in. It just takes weeks.”

In the short term, the immediate area of interest for buyers remains the three whale cluster levels at $16,694, $16,411, and $16,064. If BTC falls below these levels convincingly, the probability of a deeper correction could significantly spike.

Following the sharp drop in the price of Bitcoin (BTC), whale clusters show several areas as key support levels. These levels could allow BTC to stabilize and regain its momentum in the short term.