Bitcoin price outlook still bullish despite drop from COVID-19 vaccine news

Published on by Cointele | Published on

The price of Bitcoin has seen extreme volatility in the past 24 hours.

On Nov. 9, Bitcoin saw a sharp drop from $15,840 to $14,805, which occurred shortly after Pfizer announced its optimistic COVID-19 drug trial results, having tested nearly 44,000 individuals and demonstrated 90% effectiveness.

Subsequent to the announcement by Pfizer, major U.S. stock market indices rallied by around 3%. The highly anticipated breakthrough in the vaccine's development caused Bitcoin and gold to rapidly drop.

Since Bitcoin recovered back above $15,300 within six hours, whales likely bought back at a lower price.

Speaking to Cointelegraph, Bitcoin technical analyst Eric Thies said that Bitcoin has essentially been fluctuating between two levels: the $14,500 support and $16,000 resistance.

"We've seen Bitcoin breaking previous 2019 resistances for almost two weeks now, and with price rapidly fluctuating between $14.5K and $16K, bulls are in need of a consolidation period before we rapidly accelerate towards hitting the 2017 high of $19,500."

The short-term drop of Bitcoin was also critical to reset the futures market.

Ki told Cointelegraph that the exchange inflow mean shows the Bitcoin market is "Still in a strong buy zone." The exchange inflows show the amount of BTC that traders and investors are transferring to exchanges.

If Bitcoin continues to consolidate with decent momentum, Thies said buyers are safe from a major drop.

The price of Bitcoin has stayed relatively stable above $15,000 throughout the past week, apart from several days.