Rising US inflation and FUDs related to the Evergrande outbreak may be factors behind the recent pullback for Bitcoin price, but most analysts see the drop as a “necessary retest.” detail Cryptocoin. com
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Bitcoin bulls managed to stay above $60,000
Volatility is the name of the game in the cryptocurrency market, and the sell-off in Bitcoin price on the evening of November 11 is a reminder that ATH levels are followed by underlying support levels. TradingView data shows that after falling to $62,800 on Nov. 10, the BTC price managed to bounce back to $65,000, where the bulls are now preparing to consolidate and prepare for another rise.
Bitcoin price drops are “temporary”
Seeing a rapid drop of $7,000 in BTC might come as a shock, but for analyst ‘Nunya Bizniz’, “Bitcoin dips are temporary”.
https://twitter. com/Pladizow/status/1458798337176395778
After a spike in BTC price, it is common to experience a pullback that touches or briefly falls below the Bitcoin price, as observed in the chart below, which shows Bitcoin price along with the 20-day MA.
Evergrande and inflation affect the market
Jean-Marc Bonnefous, head of asset management at Tellurian ExoAlpha, says there’s been a lot of talk about the impact of the Evergrande story on recent sales in the market:
Evergrande news is to stocks what Elon Musk tweets to cryptos.
According to Bonnefous, “crypto markets seem to be overreacting to the headlines” and “the recent drop is probably more of a technical consolidation after the sharp rally over the past few days. ”
It’s not just the negative headlines about Evergrande and tweets from the phenomena that affect the price action in the crypto market. According to Bonnefous, the recent 6.2% increase in the US Consumer Price Index (CPI) also points to an important factor affecting global financial markets and the price of Bitcoin. Bonnefous adds:
The recent shocking inflation figures in the US should be a supportive key driver for Bitcoin prices beyond the short-term tactical selling pressure.
Bitcoin price is in the process of a necessary retest
A final word of encouragement was shared by popular Twitter analyst GalaxyBTC. The analyst said:
Yesterday’s retest was needed for the bull run to continue in a healthy way. I think we’ll start pumping more now.
