Bitcoin (BTC) faces potential “short-term issues” on its path to reaching six figures, including a possible correction to around $70,000.
In a Quicktake market update on Nov. 16, on-chain analytics platform CryptoQuant suggested that BTC price action could experience some “healthy cooling.”
BTC price analysis highlights possible correction
Bitcoin has been trading near $90,000, with week-to-date gains nearing 13% as the weekly close approaches.
CryptoQuant contributor BaroVirtual suggested that BTC/USD might enter a consolidation phase, with a potential downside target of just above $70,000.
The analysis centers on two moving average (MA) trend lines, which are now approximately 20% apart.
“The position of the price chasers (7d and 30d MAs) indicates that we are seeing intense, healthy buying pressure on Bitcoin, which is a very positive signal,” the update noted.
“The issue is that the gap between the fast and slow chasers is 19%, and this, in turn, leads to two possible scenarios:
1) Bitcoin takes a sideways position in the $87,000-$93,000 range for some time and then continues its upward movement to the $104,000-$120,000 range.
2) Bitcoin corrects downwards to the $71,000-$77,000 range, experiences intermediate healthy cooling, and then resumes its local upward trend.”
Whales keep accumulating
As Cointelegraph previously reported, the idea that Bitcoin’s bull run may pause before reaching $100,000 is not new.
Some analysts anticipate a retest of recent support levels, while others suggest a bearish pullback to $50,000 or lower.
CryptoQuant data, however, shows strong investor confidence.
Contributor Darkfost noted, “Even with BTC around $90k, [whales] haven’t stopped accumulating, and most are holding, which is a sign of confidence in the market.”
This accumulation trend suggests sustained optimism despite potential short-term price fluctuations.
