Over the past two weeks, Bitcoin prices have come under heavy selling pressure, falling 3% to $35,000 before rallying back to trade levels of $36,197. This brings an indication that Bitcoin is likely to enter a retracement phase after reaching $37,000 last week if there is no supporting sentiment. Ahead of the PPI data, investors are still cautious about current developments.
The selling pressure that occurred since yesterday is a string of Whale Bitcoin group has sold a large amount of BTC in the last week. Pare famous analyst, Ali Martinez, stated that Whale Bitcoin started taking profits on November 3rd, taking advantage of the increase in the price of BTC from $35,000 to almost $38,000. During this phase, more than 15 wallets, each holding more than 1,000 BTC, began selling some of their holdings.
On the other hand, Ali Martinez also noted that the Bitcoin network has slowed down. BTC's surge in price coupled with slow network growth is cause for concern, signaling a potential lack of momentum to support the uptrend. This indication is one that needs to be taken into account.
With today's price decline, Bitcoin has broken through the important support level at $36,400. The next support level lies at $36,400, which if broken could lead to a further price correction to $30,200.
US CPI data shows that inflation has eased, giving a boost to the equity market. Analysts expect that Bitcoin can follow the early trend in the near future and can jump to $40,000.
On the other hand, the SEC will announce its decision on the approval of the spot Bitcoin ETF on November 17. Ark Invest's Cathie Wood noted the increasing likelihood of a spot Bitcoin ETF approval, based on the involvement between the SEC, ARK, and BlackRock.
