3 Reasons Traders Want To Buy Bitcoin’s Price Drop To $ 58,500

Cryptocurrency traders are struggling and confused after a sharp drop in the price of Bitcoin (BTC) triggered a market-wide sell-off that has almost every token in the top-200 flashing red today.

Data of Cointelegraph Markets Pro and TradingView show that Bitcoin’s price fell as low as $ 58,609 before buyers pushed the price back to $ 60,500.

BTC / USDT 4-hour chart. Source: TradingView

Here’s a look at what some traders and market analysts are saying about this recent downward move and whether or not it’s just a shake-up or a sign that darker clouds are building.

BTC is exploring support and resistance levels

Options trader and pseudonymous Twitter user “John Wick” offered information on the daily price action of BTC, who public The following chart highlights some important areas of support and resistance.

1-day chart of the BTC / USD pair. Source: Twitter

Wick said that Bitcoin is only exploring the resistance zone around its new all-time high and highlighted the possibility of a drop in the range of $ 58,000 to $ 59,500, similar to the movement seen in the first trading hours of November 15.

Wick said:

“We are simply testing the low range of the resistance zone. If we break it at the close, we can test the support zone. “

Market analyst and pseudonymous Twitter user “Rekt Capital” made similar observations, who public the next tweet that walked away and watched the BTC price action on the monthly chart.

As the analyst mentioned, the price action on November 16 was a further pullback to the monthly support / resistance level at $ 58,700. Now that BTC has successfully rallied near the $ 61,000 monthly level, a bullish case can be made in the coming weeks if the price manages to close the month above the level.

There is still a chance that USD 54,000 will be reached

Market analyst and Cointelegraph contributor, Michaël van de Poppe, provided a no-nonsense view of the latest price action, who posted the following chart of a possible BTC price trajectory over the next week.

1 hour chart of the BTC / USD pair. Source: Twitter

Van de Poppe said,

“So far, everything is going well with Bitcoin. Bouncing off the support, but still needing to break through some crucial areas here, which hasn’t happened yet. Let’s go through that first. USD 63,000 is important. No break there [conduce a] further downside momentum. “

According to the chart provided by van de Poppe, If the downside momentum continues, the price of BTC could drop to its next support level at $ 54,000.

Fractal patterns suggest an approaching price rise

Crypto Twitter analyst “Allen Au ” public the following side-by-side charts of Bitcoin from 2013, 2017 and 2021 in response to concerns that USD 69,000 is the top of the cycle.

1-day charts of the BTC / USD pair for 2013, 2017 and 2021. Source: Twitter

According to the analyst, the recent low is not the high of the cycle, but was actually the movement of Wave 6 seen in previous cycles. This means that “if its low is in, BTC could be in Wave 7 soon!”

Should the outlined wave sequence unfold, then a Wave 5 peak could be $ 69,000, a Wave 6 low near $ 58,600 with the potential to fall as low as $ 53,000, and a peak of $ 53,000. cycle somewhere between $ 190,000 and $ 260,000 occurring sometime in December 2021.

The total cryptocurrency market capitalization currently stands at $ 2.651 trillion and Bitcoin’s dominance index is 43.2%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risk, you should do your own research when making a decision.

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