November 26 turned out to be the worst day of the month for the crypto market with even Bitcoin tracing a sharp drop. However, this Black Friday will likely have no long-term implications. That is, of course, as long as the king coin can hold its position above certain levels. These indicators will also act as the first sign of a bearish turn.
Bitcoin on Black Friday
Despite the king's coin turning red yesterday after a full week of consolidation, there are chances that Bitcoin will rebound from its 8.1% drop soon. Nevertheless, Looking at the short-term bullish case, it is imperative for Bitcoin to ensure that it does not exceed certain thresholds.
First of all, BTC needs to retest the bull market support band. The short-term fork cost base chart makes it clear that with BTC trading at $ 54k, any retest of the band will only result in pushing BTC higher.
Second, the Spent Production Profit Ratio line just bounced off the neutral 1.0 line and this shows that investors are refraining from selling at a loss. This retest was highly anticipated as in a bull market, the SOPR retest of the neutral line is an indication of a relatively safe performance.
Similarly, if 1.0 is tested as resistance during a bear market, it means that the market is no longer losing. Therefore, in this case, it is necessary for now to stay above 1.0.
And third, the supply shock index currently shows a bullish divergence that was also observed in August and September. The reason behind this is that illiquid entities with little or no sales history are taking over the supply of liquid and highly liquid entities.
Bitcoin this time has survived despite falling and almost creating a bearish divergence. However, if the price movement moves below the illiquid supply shock index indicator, then we will see a bearish divergence, which should not occur if the tilt remains stable.
So if you are looking For a short-term bull market, then you need to watch out for the aforementioned signals. As long as the Bitcoin market is safe from a bearish divergence and / or SOPR below 1, investors can expect a quick recovery.
