Bitcoin Forum

Bitcoin Price Falls Under $4,000: Was Immediate Pullback Expected After Big Spike?

On November 28, the price of Bitcoin (BTC) spiked from $3,771 to $4,355, by more than 15.4 percent. In less than 48 hours, the dominant cryptocurrency has fallen back down to $3,861, dropping below the $4,000 mark.

Bitcoin recorded a 7-month high daily spike in value on Wednesday, leading traders to be optimistic about the short-term trend of the asset considering the sheer intensity of the upward movement.

But, the lack of momentum of BTC inevitably led the cryptocurrency to fall by around seven percent in the past 12 hours.

Expected Drop
On Wednesday, Hacked.com reported that traders were not convinced of a bull run following Bitcoin’s strong 15 percent rally. At the time, prominent cryptocurrency trader with the alias The Crypto Dog said:

“Very weak. I originally had a bullish mindset watching this PA but the response from bulls has been disappointing. I still think we’ll see a bounce from 4k, but it may not continue much further. Let’s see what happens.”

Alex Kruger, an economist, and a cryptocurrency trader, also suggested that while the short-term corrective rally allowed the asset to establish a bottom, it has not found a proper bottom in a price range and that a drop below the $4,000, possibly to $3,700, remains a possibility.

CCN | https://www.ccn.com/bitcoin-price-falls-under-4000-was-immediate-pullback-expected-after-big-spike/

Yes, it was very weak indeed, could be a bear trap again. And today its just hovering $4k so obviously a lot of speculators have short bitcoin again. Anyways, we could even expect the price to go down below $4k anytime soon because it looks like the bear is not yet exhausted up to this point. So I wouldn't be surprised in the coming days that another massive sell off would happen pulling down the price to the lows $3k.

This is what I fear about investing again with bitcoin. Bull traps are always set to get the peoples money from those whales that are making a good pump in the market and then pulled out later on after reaching a certain short term goal. This is clearly what we called taking advantage of cryptocurrency market. Mostly low investment capital will be most likely to be affected with this kind of activity.

It was an easy bull trap for the manipulators to make a few extra bitcoin, sad when they are still punishing the investors who are already reeling at these low prices. I'm trying to accumulate so hoping that the bear market lasts a few more months

we do not know what is happening, I saw 1200 coins walls at 4300 just now
maybe its a bear trap, maybe we are in for some glorious recovery
I suspect it will go up a bit, seeing all the sudden positive news out of nowhere
but since the price dropped from 6500 to 3600 without any reason at all ( at least without any reason that is serious enough to explain a 80% drop)
I only smirk at predictions in regards to the price movements, all I know that if it drops to 2000$ -I'll buy

It's either traders are trading now as never before or something else is going on the market I can't understand. I just looked at CoinMarketCap's page for BTC and I couldn't believe my eyes:

https://i.imgur.com/FRbEHU8.png

If I remember it correctly, the trading volume is almost always below 1 million BTC, and I don't think I've ever seen anything above 1.3 million. Am I missing something or are we at the ATH regarding daily trading volume?

I don't know about bear traps and bull traps in the short-sighted time frame we're talking about here. I mean, every time Bitcoin's tried to come up, isn't profit taking the natural things to do for speculators? We're talking about the last week where we saw 10%, 15% gains in a few hours. Don't tell me scalpers don't set their Take Profits at those values? Or even the very logical $4k barrier?

It's not the big picture still.

Trading volumes are definitely higher than in the last couple of months, but that shouldn't come as a surprise with how the market has been shaken up after breaking through yearly support of $5700/$5800.

I do however have to note that CMC's trading volumes are pretty inflated and don't represent that what's actually happening. Asian exchanges are experienced volume cheaters to have their brand rank up on CMC, all to attract newbies looking for a high volume exchange. It's basically their way of taking care of marketing.

If you want to focus on volumes that matter, and are less likely subject to wash trading, focus on exchanges as Coinbase Pro, Bitstamp, Kraken, Coinsbank, etc. True USD exchanges.

But isn't profit taking also natural for speculators when Bitcoin is going up? Traders are only a small group within the Bitcoin community. Some people treat it as a long-term investment and some build their businesses around it. The story that that Bitcoin will keep going down because traders will continue to take profits at every bounce just doesn't add up. It will keep happening until it stops and those who were counting on it get fucked.

If we recall the past year, then a month before the Bitcoin space takeoff, the price for it also fell. Now we see just another fluctuation of the crypto market. The price of bitcoin will increase.