The cost of Bitcoin (BTC) dropped beneath $16,900 again on Nov. 27 across acme exchanges, including Binance. The recent pullback comes as whale substitution deposits started to increase.

Ki Young Ju, the CEO of CryptoQuant, reported that the All Substitution Inflows Mean indicator reached the "danger zone." Historically, this caused BTC to suffer brusque-term corrections.

Bitcoin struggles to regain momentum above $17,000

After the price of Bitcoin briefly dropped to $16,200 on Nov. 27, it started to show some signs of recovery. It remained to a higher place the $17,000 level for over 11 hours before another leg down.

BTC/USD 1-mean solar day nautical chart (Bitstamp). Source: Tradingview

Following the sharp driblet of Bitcoin, a low volatility cost range was expected. The before drop on November. 26 to $16,200 decimated exchange order books, specially in the futures market. Hundreds of millions of dollars worth of futures contracts were liquidated within several hours, every bit Cointelegraph Markets reported.

All Exchanges Inflow Mean reaches danger zone. Source: CryptoQuant

But as soon as whales began to deposit BTC to exchanges, the cost started to fall. This suggests that there accept  probable been many traders buying the dip in the derivatives market who could be getting squeezed out. Ki wrote on Nov. 27:

"BTC Whales are depositing to exchanges. I expect dumping in the brusque-run. All Exchanges Inflow Mean(144-block MA) hit 2 BTC. I recollect we're in a danger zone. The price is likely to go sideways or down when whales are active on exchanges."

Some traders, like the pseudonymous Bitcoin investor known every bit "Bitcoin Jack," predicted this scenario. He said that investors would likely rush to buy the dip early, leading to another drib.

On November. 26, after predicting a accident-off elevation about the all-time high, the trader said:

"Another time proven fact: When price corrects Bitcoin style, 90% will purchase besides early on and when price goes lower, sell the bottom."

Following up on the initial prediction, the trader also said that Bitcoin would likely driblet or consolidate for a week before it begins grinding upwards.

Where is the bottom?

The expectations of the brusk-term Bitcoin bottom varies. Some traders expect the $16,000 level to agree, while others anticipate $15,000 and even $xiv,000.

A pseudonymous trader known as "Beatlorion" said a drop beneath $15,000 has get a possibility. Although BTC might not drop that low, the trader said that he feels more confident shorting than longing in this environs. He said:

"Closed my longs, I don't trust this bounce and re-entered short position. Looking for a dump below $15k. Expecting something like this. I got stops only in case I'm wrong, simply I feel better almost shorting this than longing."

Meanwhile, popular Bitcoin trader Tone Vays said on November. 25 that he expects Bitcoin to eventually driblet even farther to the $14,000 back up level.

As Cointelegraph Markets reported, this $xiv,000 zone should serve as crucial back up, as it marked the top of the balderdash wheel in summertime 2019.