• Bitcoin may test the low $80,000 before finding firm support, says BitMEX co-founder Arthur Hayes.
• ETF inflows and reduced retail selling signal early stabilization in Bitcoin and altcoin markets.
• Ethereum rises above $2,800, boosted by Fusaka upgrade, institutional flows, and stronger network development.

Bitcoin might continue to move sideways below $90,000 in the coming days, according to BitMEX’s co-founder Arthur Hayes. He also predicted that the market might see at least another fall to the low $80,000 region before the market gains solid support.

Hayes expects the $80,000 level to remain intact in spite of the expected volatility in price, thanks to the improvement in dollar liquidity. He posted the following two crucial factors that helped ease the burden from risk assets in a post on X:

The US Fed’s quantitative tightening policy will expire on December 1. In November, banks in the US increased their lending activities, infusing liquidity into the market.

“With quantitative tightening coming to an end and banking growth increasing, there may be some reprieve,” Hayes said. He also added that the price of Bitcoin might fall again to the “low $80,000s,” but that price will be sustained. According to him, he might “take a nibble” at the current price but will wait until next year to inject larger amounts of cash.

November Signals Bitcoin Stabilization Trend

Market analysts are also picking up signals about the possible existence of a pattern behind the recent price actions of Bitcoin. Jamie Elkaleh, the CMO at Bitget Wallet, said that the price might be establishing a pattern of stabilization.

Elkaleh observed that fund inflows are beginning anew in the ETFs, and the retail investors are relaxing their pressure in the market, along with the fact that “Ethereum is regaining vital grounds.

As Elkaleh observed: “The recovery of the price of Bitcoin and the leading alt-coins ‘show early indications of being stabilized rather than being merely temporary rallies.” In addition to this recent trend, she also mentioned the past pattern where November has been seen as the best month of the year for the price of Bitcoin.

The ability of Bitcoin to remain in the mid-$80k levels despite interest rate uncertainties “evinces a certain level of strength,” according to Elkaleh. Institutional buying is also rising as MicroStrategy proceeds to accumulate, and there has been a net inflow of BTC and ETH ETFs after a period of outflows.

Also Read | Strategy Plans More Bitcoin Buys, Citing Its 2022 Bear Market Playbook

Ethereum Boosted by Fusaka Upgrade

The Ethereum price is also gaining renewed strength and breaking above the $2,800 level. Elkaleh mentioned that the upcoming enhancements, like Fusaka, are increasing the community’s morale regarding the role of Ethereum in the decentralized finance sector and others.

“Volatility will continue,” she said. “However, the combination of reduced retail selling flows and the return of institutional inflows and strong network development provides real credibility to this recovery.”

Both Hayes and Elkaleh see the structural trend of increasing liquidity and the first ETF inflows as an indicator of the market’s gradual stabilization rather than consolidation, which may continue through the end of November and beginning of December.

Also Read | Bitcoin Bounces Back to $87,000 Amid Rising Hopes for Fed Rate Cut