Is the Worst of the Bitcoin Pullback Over? It all Depends on the Next Four Days


  • China’s crackdown has investors scared, causing the BTC liquidity to evaporate
  • Bitcoin sell positions are near their lowest level ever while buy positions are at the highest level since February
  • According to Mati Greenspan, the worst is probably behind us but the market structure for bulls still looks “awful”
  • Don’t worry “2020 will be a good year” — Analyst Willy Woo

After the brutal last week that extended to the first half of Monday, Bitcoin price is now staying above $7,000 level.

Meanwhile, Bitcoin liquidity, the degree to which an asset can be quickly bought or sold in the market at a price, has evaporated from the market which Gabor Gurbacs, digital asset director at VanEck says is because of investors worried about China crackdown which has them second-guessing their re-entry point and lower prices.

In a separate post, he pointed out that apart from lower liquidity and China’s crackdown scaring investors from re-entering, “2019 year-end tax-loss arbitrage and lots of recent product development and M&A being funded with crypto” are the reasons that contributed to Bitcoin’s price decline.

Bitcoin Sell Positions are near their Lowest Level Ever

But with price now trading between $7,000 to $7,300 does this mean the worst of the retracement is behind us?

According to Mati Greenspan, founder of investment firm Quantum Economics, “the worst of this pullback is probably behind us.”

Pointing to the BTCUSD longs and shorts on the Bitfinex chart, he shared how the Bitcoin buy positions are at their highest level since February while the sell positions are near their lowest level ever.

Bitcoin buy positions (blue line) bitcoin sell positions (orange)

Analyst Joe McCann also notes, “today's daily looks like a bottoming/reversal candle” and BTC Dominance also looks like it is bottoming. Moreover, BTC daily volume starting to trend higher.

Weekly price has closed below the Bollinger Band “for the first time in a very long time,” which he says is “typically a great long entry even if it is for a tactical short term (1 week) swing trade.”

However, the market structure for bulls according to McCann looks “awful” but “short term trades appear to favor longs here, even for a dead cat bounce week.”

$10k or a New Low?

Bitcoin might be trading around $7,100 but Galaxy Digital’s Mike Novogratz says the digital asset needs to go back above $7,500 in the next two days or we will be trading in the $6,000 and $7,400 range which would be “less than pleasant.”

However, popular analyst PlanB, who is known for his stock-to-flow model says Bitcoin could close 2019 at above $10,000.

But for that to happen, Bitcoin needs to close above $8,300 by the end of this month, and it has only four days left for that, said analyst Willy Woo.

If the world’s leading cryptocurrency fails to end November above $8,300, Woo says it will be a bearish December. What’s worse is, we can test new lows — 2019 started at above $3,700 level while BTC hit bottom in December at $3,200.

The bullish picture is he is predicting “2020 will be a good year,” which has him “want it to go lower to collect cheaper coins.”

Bitcoin (BTC) Live Price

1 BTC/USD =$51,752.0033 change ~ 1.75%

Coin Market Cap

$964.96 Billion

24 Hour Volume

$18.16 Billion

24 Hour VWAP

$50.75 K

24 Hour Change

$905.26

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