One analyst hails a successful retest of monthly support, but nervousness is increasing on the back of 11% daily losses.
Bitcoin (BTC) recovered above $60,000 during Nov. 16 after a breakdown saw a trip to near $58,500.
Daily liquidations near $1 billion
Data from Cointelegraph Markets Pro and TradingView tracked a resurgent BTC/USD as it reversed losses, which at one point topped 11%.
After an overnight comedown accelerated, however, buyer support appeared to return — but not before 24-hour crypto liquidations hit $875 million.
Meanwhile, $58,400 corresponded with Cointelegraph contributor Michaël van de Poppe’s line in the sand to prevent further corrections.
“If we’re going to drop beneath, then that is going to be painful, and then we’re going to have a swift correction all the way back to the low $50,000 region in which we’re going to test some lower levels,” he warned in his latest YouTube update.
Van de Poppe was a rare cautious voice on the day, with various analysts and market participants still more than satisfied with the current price action.
Twitter account TechDev noted that even at $61,500, Bitcoin’s relative strength index (RSI) on daily timeframes had reset to where it was when BTC/USD traded at $40,000.
“BTC successfully retests $58700 as support. Picture-perfect rebound,” Rekt Capital added.
A separate Twitter post compared the arguably stronger reaction from the market to the day’s events than to deeper corrections seen in recent months.
#BTC has pulled back only -15% this month
— Rekt Capital (@rektcapital) November 16, 2021
Remember that in September $BTC retraced -25% before reaching new All Time Highs
This current retrace is shallower compared to the one in September and yet the emotional reaction to it appears to be much larger#Crypto #Bitcoin
“Double bubble” comparisons return
Charles Edwards, CEO of asset manager Capriole, meanwhile, pointed to “very bullish” readings from his new supply delta metric.
Supply delta is the difference between the BTC supply held by short-term and long-term holders. Now printing a rare bullish streak, it is painting a similar picture to behavior from 2013 — the year famous for Bitcoin’s double top, or “double bubble.”
“Bitcoin Supply Delta looks very bullish. The vast majority of similar readings to today were followed by large price appreciation,” Edwards stated.
“The most similar reading to today, in terms of value, profile and price action, is the 2013 double bubble.”
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