Following bitcoin’s sharp pullback on November 26, renowned trader Peter Brandt says BTC is likely to see a further correction, although he thinks prices have not topped. The comments follow the massive sell-off of cryptos that resulted in traded volumes of $8.5 billion being recorded across exchanges in just 24 hours. According to Messari, this is the second-highest traded volumes figure ever recorded.
Prior to the bears taking over, BTC had gone on an extended bull run and during the run up, many analysts predicted the digital asset would at least breach the $20,000 mark. However, at the time of writing, BTC appears to have stabilized after bottoming out at $16,218.
Some Analysts Still Bullish
In keeping with the practice of issuing bullish statements when BTC is on a bull run, some analysts insisted that BTC would end the year above $20,000. Still, even after the latest crash, some remain adamant that the $19,500 resistance level will be breached and they back their predictions with data. For instance, the findings from a study carried out by a Swiss financial institution, SEBA says that current “wallet holdings suggest large holders are unperturbed by the sell-off.”
Also agreeing with the SEBA findings is Mati Greenspan, the founder of Quantum Economics who tweets that the “17% pullback is rather tame at this stage of the cycle.” When one Twitter user asks if a further drop is expected, Greenspan responds “my guess is we’ve already seen the worst of it.”
Alternative Views on the Latest Bitcoin Pullback
However, not everyone agrees with the assessment that the large drop is actually a long-overdue correction. Instead, some bitcoiners on Twitter say rumors that the U.S. Treasury Secretary Steve Mnuchin is planning to change rules governing the use of noncustodial wallets might have triggered the large drop on November 26. Without giving away much, Ryan Selkis the founder at Messari tweeted “I survived the Mnuchin crash of 2020.”
However, Kyle Samani, the managing partner at Multicoin thinks the Mnuchin rumors have no effect on the current BTC bull run. He argues:
(The) next wave of buyers macro buyers want regulation For them, 21M cap is a feature, and censorship resistance is (kind of) a bug They don’t want self custody. Just inflation hedge.
Still, others believe the resumption of withdrawals on the Asia crypto exchange Okex might have caused the drop. Okex froze withdrawals after one of the exchange’s private key holder was reportedly taken in custody. While there is no consensus on what caused the drop, many bitcoiners appear to agree that BTC might not be returning to $10,000.
For instance, the SEBA findings say $16,200 is the new support price for BTC while the resistance is $19,500. Prior to the Thursday drop, Mike Novogratz of Galaxy Digital opined that BTC prices are not going to fall below $12,000 in the current cycle.
Do you think BTC will go past $20,000 this year? Share your views in the comments section below.
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