YEREVAN (CoinChapter.com) — Bitcoin (BTC) starts this week in the red, with traders showing cautious optimism ahead of the Thanksgiving holiday. They visibly await a sharp correction in the BTC markets — a Black Friday sale — to purchase the cryptocurrency at local price lows.
Bitcoin Price Stabilizes Amid SEC’s ETF Rejection Concerns
As of Nov. 20, BTC was trading for around $37,000, with declining trading volume indicating a slowdown in its prevailing uptrend.
Notably, Bitcoin’s upside bias has shown signs of exhaustion in the last two weeks. Its price rallied toward $38,000 but fell short of logging a decisive breakout. This period of consolidation between $37,000 and $38,000 coincides with a flurry of depressive market updates.
That includes a fake BlackRock Spot XRP ETF filing that prompted a pump-and-dump scenario in the XRP market. In turn, the event reiterated the US Securities and Exchange Commission’s (SEC) prevailing concerns about price manipulation that has held it from approving a Spot Bitcoin ETF application.
Simply put, the fake XRP filing risks providing the SEC a fresh excuse to reject Spot Bitcoin ETFs.
Does that mean Bitcoin’s bull run is over? Not exactly! On the other hand, the ongoing BTC price stabilization appears more like a bull market correction.
So, investors with a lower risk appetite may sell their BTC holdings to secure short-term profits, causing price drops. But the selloff may get absorbed by investors with a long-term risk appetite, leading to a bullish continuation.
Where Will Bitcoin Price Drop During Black Friday Sale?
Bulls may go shopping for Bitcoin this Black Friday. Technical indicators hint at an imminent correction. They include BTC’s daily relative strength index, which remains overbought above 70, indicating an impending correction.
In addition, BTC’s multi-month ascending trendline resistance increases the selloff likelihood, as shown below.
Suppose the correction occurs. Then, the BTC price’s next downside target is nearly $31,000. This level coincides with the confluence of two support levels: ascending trendline support (purple) and 0.236 Fibonacci line.
That’s the most convincing Black Friday sale offer for Bitcoin investors in the ongoing bull market.
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