Bitcoin Overall Bullish Outlook Remains Intact Despite Recent Crash Below $59K
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Bitcoin (BTC) has dropped by 10.2% since November 15 as bears keep the pressure. Despite the prevailing intense bearish pressure, the benchmark cryptocurrency appears to have found unmoving support, preventing further slides.
Analysts assert that BTC now resides within a tight range around the critical $60K level following the inability of bulls to overpower sellers and drive prices higher. Nonetheless, they have argued that Bitcoin’s overall momentum remains bullish as blockchain data shows that the current correction might not persist.
According to Jan Wuestenfeld, an analyst at CryptoQuant, the recent price slump is related to excessive leverage getting “flushed out” of the market. The CryptoQuant analyst added that, with the prevailing on-chain metrics, the medium-term outlook for BTC remains comfortably bullish.
Another analyst at Delphi Digital, Joo Kian, expressed similar views with Wuestenfeld, explaining that leveraged traders were victims of liquidators as the price plummeted. Kian added that existing open interest at the time was at peak levels for most trading pairs before the BTC crash.
He also reaffirmed that flushing out excessive leverage was necessary and healthy for the market over the longer term. Nonetheless, Kian warned that it could take a while for trading activities to recover to previous levels.
Additionally, Bitcoin’s 30-day MVRV—which highlights the unrealized profit or loss on all addresses that purchased BTC over the last 30 days—suggests that the flagship cryptocurrency is undervalued and could record a healthy recovery soon.
Key Bitcoin Levels to Watch — November 18
On the daily timeframe, we can observe that the $59K support line remains intact despite the recent sharp crypto market drop. Bulls only need to defend this line over the next few days to reestablish some upward traction.
That said, further corrections to and below the $59K support is not out of the picture. Notably, we could see a drop to the lower-$58K area if the 50 SMA fails to hold the price at $59.5K. What matters is that bulls assiduously prevent a daily candle close below the $59K support.
Meanwhile, my resistance levels are at $61,000, $61,785, and $63,000, and my key support levels are at $59,000, $58,000, and $57,500.
Total Market Capitalization: $2.60 trillion
Bitcoin Market Capitalization: $1.12 trillion
Bitcoin Dominance: 43.2%
Market Rank: #1
