The price of bitcoin has fallen by more than 20% this month, putting it on track for its first losing November in three years.
However, the month isn’t over yet. According to a recent report, two scenarios are now possible for bitcoin.
Bitcoin Deviates from Historical Patterns #
Bitcoin is on a four-week losing streak, the longest such streak in a year and a half. Analysts at Bitfinex noted in a report that selling pressure has increased significantly and that the price decline has taken many traders by surprise.
The Bitfinex analysts point out that bitcoin is deviating from its historical patterns this quarter. The cryptocurrency is poised to close this month in the red, just like the previous month, and the price drops are more severe than usual.
November is typically a bullish month for bitcoin, according to data from Coinglass. Last year, the price rose by 37%, and the year before that by almost 9% in this month. October had also promised a similar price increase.
Demand for Bitcoin Could Grow Again #
According to the Bitfinex analysts, several scenarios are possible for bitcoin. It’s possible that the current phase will continue, with the price of bitcoin falling deeper. At the moment, many traders are at a loss, the analysts note.
In another possible scenario, demand for bitcoin begins to grow again. However, a strong demand is needed to absorb the current selling pressure. The analysts conclude that the balance on the market will not simply return on its own.
There are signs that demand for bitcoin is increasing. Analysis platform Santiment noted on X that the number of addresses holding at least 100 bitcoin has been rising since November 11. Meanwhile, the number of smaller, retail traders is decreasing. According to Santiment, this is a sign that crypto prices could rise soon.
Analyst Remains Bullish on Bitcoin’s Prospects #
While Bitfinex outlines a cautious or even bearish scenario, analyst Merlijn The Trader is bullish.
He stated earlier this month on X that bitcoin is in the ideal position to rise sharply soon.
“Look at the data. Don’t be afraid,” said Merlijn.
According to the analyst, the combination of negative market sentiment and the fact that November is historically a strong month creates the perfect situation. “Markets don’t reward emotions. They reward patience and positioning,” the analyst emphasized.