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The Bitcoin (BTC) price has kept traders and investors yearning for a significant move, but chances of steady price action or consolidation have weighed down market expectations.
After a weekend rise to the $21,480 mark, The Bitcoin price has failed to move any higher. BTC kicked off a fresh week on a low note, pulling back 1.42% on the daily chart after its weekend gains made market participants hopeful of a robust recovery.
Bitcoin (BTC) price correction continues
At press time, the Bitcoin price traded at $20,670, down slightly more than 1%. Despite bulls pushing the price above the $21,400 mark over the weekend, BTC ran into considerable resistance entering the new week.
Between Nov. 4 and Nov. 6, the BTC price appreciated by almost 6%, charting a 7-week high.
Many were hopeful of more substantial gains after BTC managed to move above the $20,500 support level. However, a downtick in the RSI indicated that sellers were getting stronger.
BTC Bollinger bands expanded, presenting higher volatility.
The BTC price still remains under the $21,194 resistance, where 1.09 million addresses hold over 551,300 BTC. A close above the 100-hour moving average at the $21,000 mark could potentially provide some bullish momentum.
Where are signs of a recovery?
Analyst Will Clemente pointed out that the BTC/Nasdaq weekly candle close shows BTC breaking out relative to the Nasdaq.
This could be taken as a positive sign, however, there are still considerable resistances that lay ahead for the BTC price.
Firstly, Bitcoin’s NVT ratio (7d MA) reached a 1-month low of 475. Low NVT values signify that investors are pricing Bitcoin at a discount. On-chain Transfer Volume and network utilization are also outpacing Market Cap growth.
That said, Bitcoin’s aSOPR (7d MA) reached a 1-month high of 0.99856 on Nov. 7. Around local price tops, a higher aSOPR value indicates that the magnitude of profit being realized is increasing with each rally. This also means that larger volumes of demand inflow capital are required to absorb coins sold at increasingly higher prices.
Lastly, the MVRV z-score for Bitcoin shows a recovery above the 0-line, suggesting some bullish market momentum for the top cryptocurrency.
The Bitcoin price might be able to chart some short-term relief, but only a decisive close above the $21,000 mark can put bulls back on track to $22,000. The $20,500 level could potentially act as a strong support moving forward.