Analysts say a larger Bitcoin (BTC) price pullback or a consolidation period could occur. The 2 factors that could trigger more downside include increasing whale activity and brusque-term resistance.

Bitcoin whale watching

As Cointelegraph reported, Bitcoin crashed after it surpassed $19,400 beyond major exchanges. It dropped to below $16,400 before slightly recovering. But analysts foresee another possible drop incoming, especially if BTC does not rebound strongly in the near term.

Two key trends caused the contempo Bitcoin correction. First, whales began to sell BTC at around $19,000, resulting in a downside volatility spike. Second, this relatively small price driblet triggered a cascading wave of liquidations in an overleveraged futures market.

Bitcoin all exchanges inflow mean. Source: CryptoQuant

Ki Young Ju, the CEO of CryptoQuant, said that more corrections might come in the brusque term. The All Exchanges Inflow Mean indicator, for instance, is nonetheless hovering at a high level, suggesting that there is still a lot of selling pressure in the market place. He said:

"More $BTC corrections might come. All Exchanges Inflow Mean (144-cake MA) remains still loftier. In my stance, we'll face some corrections/sideways this week and it volition break $20k by Dec this yr. I'll stack some sats a few days subsequently."

The timing of the sell-off from whales is noteworthy because it comes afterwards BTC rejected a crucial resistance area. A pseudonymous trader known as "CryptoKea" has discussed the resistance level under the Mayer Multiple Price Bands since early November.

If history rhymes, the trader said that a bigger correction is probable. Such a trend would however be in line with previous bull cycles when BTC dropped thirty%–40% earlier continuing its rally. The trader said:

"The top of the bullish aqueduct has done an excellent job in acting equally short-term resistance, merely as it did at this stage in prior balderdash markets. What happened historically afterwards? History never repeats, but often rhymes. These are the historic retrace multiples of the 200DMA of where price found support after it got rejected from the top of the bullish channel at effectually this stage of the bull. Current 200DMA is at $eleven.2k, increasing ~$40/day."

In the near term, the cardinal support for Bitcoin is found at $sixteen,000. Beneath it, the next major support areas to lookout man are $fourteen,000 and $thirteen,500.

Gilded Ratio Multiplier identifies key support levels

Philip Swift, the creator of Lookintobitcoin.com, said that the Golden Ratio Multiplier indicator showed a rejection of the 350-DMA resistance.

The Aureate Ratio Multiplier. Source: Philip Swift

The Golden Ratio Multiplier identifies $16,000 and $xiii,000 as crucial support levels, similar to the Mayer Multiple. Swift said:

"Boom! Cost firmly rejected by the 350dma x 2 yesterday when CT seemed certain we would race through it. This indicator is very much in play this cycle."

Based on the ii indicators, if Bitcoin rebounds and consolidates above $sixteen,000, and so a relief rally to the next areas of resistance is possible. If not, BTC is at gamble of testing the $13,000–$14,000 support range.