BTC’s price is still strong, despite a decline to lows of $14,800
The price of Bitcoin returned to above $15,400 after a slight drop saw it fail to fall to lows of $14,895, with the drop occurring immediately after Pfizer announced a vaccine for VOCID-19.
Yesterday, pharmacist Pfizer announced that The News Spy review her clinical trials for a coronavirus vaccine showed 90% efficacy.
Investors seemed to seize the moment, and the appetite for risk, driving the Dow Jones Industrial Average and S&P 500 up – closing at + 2.95% and + 1.17%, respectively.
But the euphoric reaction seen on Wall Street declined significantly with confirmation that the vaccine will not be ready by 2021. The outlook appears to have shook the BTC bulls as the price has recovered to a daily close of $15,333, leaving the digital asset at just 0.95% on Monday.
BTC/USD: Short-Term Price Outlook
From a technical perspective, Bitcoin appears to be trading within a bullish Triangle, as shown on the daily chart below. In this continuation pattern, the price of an asset remains linked to the boundaries of an ascending triangle.
The price hit the bottom of the triangle, as seen when the BTC hit lows of $14,351 on November 7 and $14,895 yesterday.
If a breakout occurs to the top of the pattern, the price may rise to the height of the triangle. As long as the BTC/USD currency pair remains above the lower boundary of the pattern, there is a chance it will hit highs of $16,600 if it breaks the immediate resistance line.
On the other hand, a drop below $15,000 to minimums of $14,000 will come into play.
According to CryptoQuant CEO Ki-Young Ju, a key indicator shows that BTC remains in „a strong buying zone. This perspective is from a metric that the data aggregation platform tracks and is called „All Exchange Inflow Mean“.
According to the indicator (referred to as ‚buy the dip‘), a breakout in its 7-day moving average value previously coincided with a large recovery in the price of the BTC/USD pair, as shown in the graph below.
In this case, Bitcoin may still rise above $16,000, despite the latest drop or subsequent setback in the short term.