Bitcoin Prices Fell To Almost 2-Month Low—What Should Traders Expect Next?

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Bitcoin price declined significantly today, falling to its lowest level in nearly two months and repeatedly falling below $53,000, a level that has been identified as providing key support.

The world’s most valuable digital currency by market cap reached $51,808.54 this afternoon. coindesk data shows.

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At this point, it was trading at its lowest level since October 6, additional CoinDesk data shows.

Following this drop, the cryptocurrency bounced back above $54,000, before continuing to drop below $53,000 this evening.

At the time of writing this, the digital asset was trading close to $53,000.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Many analysts speak at this particular level, emphasizing its importance.

“Support near $53K is important for us as well, but remains intact for now,” said Katie Stockton, Founder and Managing Partner of the company. Fairlead Strategies, LLC,

“Today’s weakness could be triggered by negative momentum on the back of higher-growth stocks, which is likely to affect sentiment regarding bitcoin in Q2.”

William Noble, Research Platform’s Chief Technical Analyst token metrics, apart from offering a short-term outlook, weighed on this level as well.

“53k was the former high from the back in September,” he said.

“So, that former terrace could act as a floor for the near term. The 53k will probably act as support for part of the weekend,” Noble said.

“Once equities reopen on Monday, selling in bitcoin could pick up again,” he said.

“If the stock goes down all riskier assets, including crypto, could be down another leg.”

Brett Siffling, an investment advisor for Gerber Kawasaki Wealth and Investment Management, also weighed.

“While other analysts’ estimates seem accurate, we expect bitcoin to find support near the $50,000-$53,000 level,” he said.

“People are psychologically attracted to buy/sell orders on round numbers like $50,000. The same level was a former resistance point, which is now being tested as new support,” Siffling said.

“If we fail to hold the $50,000-$53,000 level, we also see support at the $45,000 and $40,000 levels,” he said.

Kiana Daniels, CEO Diva Investments, also commented on what could happen if bitcoin worked its way through existing support.

“BTC/USD has formed a double top bearish reversal chart pattern on the daily chart pattern,” he said.

“Friday’s drop was a test below both the 38% Fibonacci retracement level and the lower band of the daily Ichimoku cloud; both are key psychological levels,” Daniels said.

“Future Ichimoku clouds appear to be bearish. Below this level[लगभग $ 53K]A confirmation of a breakout may indicate further bearish momentum. [that] The 50% and 61% Fibonacci retracement levels could push bitcoin price towards $49K and $44K respectively,” he said.

“Keep in mind that this kind of volatility is normal for cryptocurrencies like bitcoin,” Daniels said before offering a bullish outlook.

“Once the pullback is complete, there is a high probability for bitcoin to bounce back and reach new highs in the new year.”

Shiliang Tang, Chief Investment Officer at Cryptocurrency Investment Manager laser prime, also offered bullishness, arguing that this latest pullback was a net positive for bitcoin’s future price action.

“This fall has certainly tracked the decline in equity prices that we have seen as a result of the fear of Covid and concerns about inflation,” he said.

“However, while the crypto and equity markets fluctuate together, they are separate markets and crypto in particular is in a strong bull cycle.”

“Furthermore, the on-chain metrics for bitcoin – King Crypto to track in the bull run – are still strong: more coins are being taken out than flowing on exchanges,” Tang said.

“This means that once this flushing is over, we should see a supply shock in which the price of bitcoin moves upward,” he predicted.

“If anything, this decline sets up healthy conditions for those cowboy leverage traders to wash out and for continued price growth in the near future.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, eos and sol.

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