Will Bitcoin (BTC) Hit $90,000 in November? Analysts Assess!
The prolonged government shutdown in the US and the hawkish stance of the Fed continue to dampen the Bitcoin and cryptocurrency markets.
At this point, Bitcoin fell below the $95,000 level for the day, hitting a six-month low.
Bitcoin faces a risk of falling below $90,000 this week, as the FOMC minutes and data delayed due to the lockdown are expected to be released.
Market analyst Omkar Godbole said that Bitcoin has strengthened its bearish signals as it fell below the 50-week simple moving average (SMA), which serves as long-term support, Coindesk reported.
At this point, the analyst noted that net inflows into crypto ETFs have slowed for two consecutive weeks, selling pressure from long-term investors has increased, and retail investor liquidity has yet to recover.
Godbole noted that Bitcoin fell by nearly 10% over the seven days leading up to November 16, forming a large bearish candle and closing below the 50-week SMA.
Describing this decline as a “transition from a bullish pattern to a warning phase,” he stated that investors could switch from a “buy on the dip” strategy to a “sell on the rise” strategy.
“The 50-week SMA has been a key support that has led several recoveries since the start of 2023, but following the recent breakout it is likely to become a selling zone in the short term.
The 50-week SMA is currently acting as resistance near $102,868. At this point, it is difficult to assess a return to an uptrend until a sustained weekly close above the 50-week line is confirmed.
Key technical levels need to be broken to the upside.”
Derivatives firm Bitunix also noted that Bitcoin could drop to $89,600 if it breaks the short-term support level of $93,000 to $95,000. They added that any attempted recovery would face resistance at $100,200 and then $107,300.
Bearish expectations are rising on decentralized prediction market platform Polymarket, which estimates a 77% chance that Bitcoin will fall below $90,000 in November.
However, analyst TraderT stated that “the market bottom is near.”
*This is not investment advice.