Bitcoin’s consolidation is ‘normal’ — Analysts set $80K BTC price target
Bitcoin (BTC) bulls are still hoping for a major breakout but at the moment, bears are applying pressure and keeping the digital asset pinned below $61,000.
Data from Cointelegraph Markets Pro and TradingView shows that an early morning breakout by bulls to make a run above $62,000 was met with a strong defensive line from the bears who handily rejected the attempt.
Here’s a look at what traders and analysts are saying about Bitcoin's current price action and what they expect in the short term.
“Bitcoin is still on the path to $90,000”
While some traders may have found themselves bored with Bitcoin's sideways price action, independent market analyst ‘Rekt Capital’ recently posted the following chart highlighting the fact that BTC has flipped a major resistance level into support.
Rekt Capital said,
“Though BTC has been moving sideways for weeks now… It has continued to successfully retest a major area of previous resistance (red) as new support (green)”
As for what comes next for the BTC should it manage to hold support here and head higher, analyst and Cointelegraph contributor Michaël Van De Poppe posted the following chart outlining one potential path the price could follow as it closes out 2021.
van de Poppe said,
“Bitcoin is still on the path to $90K.”
A simple target at $80,000
A more simple and straightforward price projection was provided by Twitter user ‘GalaxyBTC’, who expects a breakout target of $80,000.
The analyst said,
“Trying to keep things as simple as possible. $60,000 is the new $40,000. $80,000 is next.”
Whale wallets dominate exchange deposits
According to CryptoQuant CEO Ki Young Ju, whale wallet activity is still have a significant impact on Bitcoin price.
#Bitcoin holds support above $60k in spite of whale dumping. Most $BTC exchange deposits are coming from whales. Top 10 TXs take almost 90% of the total volume in an hour. Exchange reserve is decreasing, leading to less supply on exchanges.https://t.co/XSEdjzHnQy pic.twitter.com/UtJpGzp0UK— Ki Young Ju 주기영 (@ki_young_ju) November 5, 2021
As highlighted above, the majority of Bitcoin exchange deposits are being conducted by whale wallets, but exchange reserves continue to decrease, which is a bullish sign for BTC because the reduced supply available for purchase tends to lead to price increases when demand spikes.
The overall cryptocurrency market cap now stands at $2.712 trillion and Bitcoin’s dominance rate is 42.6%.
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