Bitcoin (BTC) traded just below $ 65,000 on Nov. 11 after an overnight correction wiped out earlier quick gains.
“No free lunch” for speculators
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD rebounded after the new volatility briefly fell below $ 63,000.
The pair had risen sharply on inflation in the US, which hit its highest level in 30 years, which, combined with reactions from the derivatives market, resulted in uncertain price movements.
With $ 69,000 now its all-time high, some were fearful while veteran market participants took the opportunity to poke fun at their weak hands.
“Why the BTC pullback of 68k? There was a massive spike in open interest in BTC margin futures this afternoon (traders long BTC with BTC as collateral), ”analyst Dylan LeClair explained alongside a chart from Glassnode.
“No free lunch – these dealers are being shaken up right now.”
Fellow analyst William Clemente pointed to the upcoming Taproot Soft Fork as a clear reason to be bullish and discard short-term price movements.
Taproot will bring a variety of protocol improvements to Bitcoin that have no comparison to changes since the introduction of Segregated Witness (SegWit) transaction technology.
We’re only days away from Bitcoin’s first major upgrade (taproot) since Segwit in 2017 and people are panicking.
– Will Clemente (@WClementeIII) November 10, 2021
Derivatives funding rates, meanwhile, served as evidence that a market shakeout had indeed taken place and returned solidly to the neutral range of 0.01% across exchanges.
Ether avoids a deeper altcoin retracement
Classic style, altcoins felt the heat as Bitcoin reversed, erasing previously generated returns that had outperformed BTC / USD.
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Ether (ETH) remained the most intact that day, down 0.6% and still just a stone’s throw from all-time highs.
Others fared slightly worse, with 4% daily losses, which is not uncommon among the top 10 cryptocurrencies by market capitalization.
“At this moment, the decisive factor: Bitcoin,” concluded Cointelegraph employee Michaël van de Poppe in his latest YouTube update.
“Where do we want to break through? If we break this area at $ 67,000, I believe we will continue the bull cycle and be ready to hit new all-time highs. “