Bitcoin Nears $80K, But Some Traders Warn of a Major Pullback Ahead

Bitcoin Nears $80K, But Some Traders Warn of a Major Pullback Ahead

Bitcoin’s price is surging towards $80,000, but the rally is dividing opinion among traders and analysts. As the cryptocurrency reaches new highs, some market participants are predicting a sharp pullback, citing potential risks despite the bullish momentum.


Bitcoin Hits $79K: Weekend Surge and Mixed Reactions

Bitcoin’s price spiked dramatically over the weekend, surging almost $2,000 in a single hour on November 10, pushing BTC/USD to the brink of $80,000. This surge aligns with a recent trend where weekend price movements—often fueled by low liquidity—have led to rapid price fluctuations.


While Bitcoin bulls are capitalizing on the thin liquidity to push prices higher, there are already signs of caution. Some traders are warning that such fast-paced movements could lead to a significant retracement.

“Weekend moves in low liquidity almost always full retrace btw,” popular crypto commentator WhalePanda cautioned on X (formerly Twitter), suggesting that the gains might not hold.


Keith Allen, co-founder of Material Indicators, also emphasized the need for caution, suggesting that “some pullbacks” are typical during BTC uptrends. Allen noted that while weekends often see large players (whales) influencing prices, he is more focused on Bitcoin's weekly and monthly closes as a better gauge of long-term momentum.


Bitcoin has been up nearly 15% over the past week, with $71,500 seen as a key price level for bulls to maintain upward momentum. If Bitcoin can hold above that level, some expect it could trigger a parabolic rally. But concerns remain that a price correction may soon follow, especially as Bitcoin nears its current high of $80K.


Price Discovery and Whale Activity

Bitcoin is currently in a phase known as "price discovery," where the asset is reaching new price levels without established resistance. According to some traders, large-volume players, often referred to as "whales," are manipulating the market with tactics like "spoofing"—placing large sell orders that are later pulled to drive prices lower temporarily.


Skew, a well-known trader and analyst, explained that whales use these strategies to create artificial price lows, then execute large orders to drive price momentum upward. The process involves tweaking order book activity to trigger buying from algorithms and smaller traders, reinforcing upward momentum. Skew believes $80,000 could be the target for the current rally but is closely watching whether passive bids are moved up to support the price.


The Risk of a Major Price Correction

Despite the optimism surrounding Bitcoin’s rise, some traders are concerned that the rally could soon reverse. Credible Crypto, a respected analyst in the crypto space, has warned that the market may be approaching a peak. He has positioned himself for a significant correction and believes Bitcoin could soon see a drop to under $50,000.


“To be clear, what I'm trying to say is I think we are likely approaching our top on most altcoins (and therefore Bitcoin as well) sooner than expected,” Credible Crypto stated. He added that such a correction could trigger a “major leg down,” a sentiment echoed by other analysts who are preparing for a shift in market dynamics.


Conclusion: Bitcoin at a Crossroads

Bitcoin’s price surge towards $80,000 is undoubtedly a major milestone, but it comes with increasing caution from experienced traders. While some believe the current rally has legs and could lead to further price discovery, others foresee a possible correction in the near future. As Bitcoin continues to reach new heights, the question remains whether this bull market will continue its upward trajectory or if a sharp pullback will put an end to the rally.


With low liquidity and whale manipulation at play, the path forward for Bitcoin is uncertain. Traders and investors will need to watch for signs of reversal and be prepared for potential volatility in the coming weeks. As always, Bitcoin’s unpredictable nature means anything can happen in the fast-moving world of cryptocurrency.

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