Analysts believe that Bitcoin price dips are temporary, suggesting that BTC will soon reach $75K

BTC’s recent pullback may have been caused by rising U.S. inflation, and fears over Evergrande contagion. However, most analysts consider the drop a “necessary test.”
Volatility is the prevailing theme in the cryptocurrency market. The Nov. 11 evening selloff in Bitcoin (BTC), is a reminder of how new all-time highs can often be followed by sharp whipsaws to support levels. Cointelegraph Markets Pro and TradingView data show that Bitcoin prices dropped to $62,800 on Nov. 10. However, they managed to climb back up to $65,000 where bulls are now looking to consolidate and regroup to push higher. Source: TradingView. BTC/USDT 4-hour chart. Source: TradingView. Here’s what analysts have to say about the outlook for Bitcoin, and the cryptocurrency market, as rising inflation concerns dominate the news headlines in the U.S. Breaking News Alert: Bitcoin dips are transitory– Nunya Bizniz (@Pladizow) November 11, 2021

The chart below shows the Bitcoin price and its 20-day moving mean (20-MA). It’s not uncommon for a rise in Bitcoin prices to be followed by a pullback. This happens when Bitcoin’s price touches or briefly dips below that 20-MA, before it rebounds higher. Source: TradingViewEvergrande and inflation affect the market. Bonnefos, head of asset management at Tellurian ExoAlpha, stated that the “Evergrande news is to equities what Elon Musk tweets are to cryptos” in that it is “somewhat manipulated news to move markets.” Source: TradingViewEvergrande and inflation affect the marketInsight into the macro factors at play was provided by Jean-Marc Bonnefous, head of asset management at Tellurian ExoAlpha, who highlighted the fact that “there has been much talk about the impact of the Evergrande story on the recent sell-off in the market.”As a way to make the development more relatable to cryptocurrency holders, Bonnefos stated that the “Evergrande news is to equities what Elon Musk tweets are to cryptos” in that it is “somewhat manipulated news to move markets.”According to Bonnefos, “the crypto markets seem to be overreacting” to the headlines, and “the recent dip is probably more of a technical consolidation after the sharp rally of the last few days.”And it’s not just negative headlines about Evergrande and tweets from influencers that are affecting the price action in the crypto market. Bonnefos believes that the 6.2% increase in the U.S. Consumer Price Index is a significant factor in influencing the price of Bitcoin and global financial markets. Bonnefous stated, “The recent shock inflation numbers in U.S. should act as a supportive fundamental driver of Bitcoin prices, above the short term tactical selling pressure.”Related to: Here’s why Bitcoin lost $6K in hoursBitcoin is currently in the process of a necessary test.A last word of encouragement was offered in the following chart by analyst ‘GalaxyBTC’. It shows one possible path for the price BTC to reach $75,000 in short-term. BTC/USDT 6-hour chart. Source: TwitterThe analyst stated that yesterday’s retest was necessary to maintain the bull run in a healthy way. I believe we will begin pumping harder now.” The total cryptocurrency market cap is $2.847 trillion. Bitcoin’s dominance rate at 43.1% is 43.1%. You should do your own research before making any investment or trading decision.

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