Why one Bitcoin analyst expects sudden 'hell's candle' plunge to $11.3K

Bitcoin stayed above $13,000 on Oct. 27 but one analyst is warning that the largest cryptocurrency is due a major correction.

Garner eyed Brave New Coin's Bitcoin's liquid coin index, a price calculator designed to assess at which price points liquidity should enter and exit the market, and the result was firmly bearish.

After its run to $13,370 over the weekend, Bitcoin is ripe to lose investor liquidity, in line with events which followed its return to $10,000 and $12,000 this year.

In each case, a certain price point triggered a sell-off, followed by a slow grind back to higher levels.

According to Garner's chart, the potential bottom level for the resulting price losses this time appears to be at $11,300 - a drop of 15.4% from the local high.

BTC/USD chart with BLX entry and exit points highlighted.

Bitcoin has retained $13,000 as broad support for almost a week, with only brief dips below that level contrasting the general bullish market atmosphere.

As Cointelegraph reported, network fundamentals have begun to trend downwards from all-time highs, something which could potentially signal a brief reshift of miner sentiment and associated price pressure.

Among network participants the overall sense is one of a maturing market, with hash rate still an order of magnitude higher than just two years ago.

Currently researching this new format of derivative product is asset manager Fidelity, the company famous for its Bitcoin support.