Has Bitcoin Been Building Up Strong Support Near $53,000?

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Since hitting a new, all-time high of nearly $69,000 earlier this month, bitcoin price has experienced a number of selloffs that have been turning lower.

The world’s leading digital currency reached its latest peak on November 10, before approaching $62,000 two days later. coindesk data reveals.

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Following that retracement, bitcoin began a recovery, climbing above $66,300 on November 15, additional CoinDesk data shows.

Following this upward move, the digital asset fell again, falling below $56,000 on November 18th, and rising above $60,000 on November 21st.

Since that time, the bitcoin price has repeatedly reached $55,000, hitting a six-week low yesterday.

[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.]

Following these continued declines, many market experts weighed in on a key support level that could be of interest to technical traders.

“The cost basis for short-term BTC investors has historically acted as a bull market support band,” said Alice Killeen, founder and managing partner of the venture capital firm. stillmark,

“Blockware Market Intelligence reports that this metric, on-chain VWAP (volume-weighted average value), is currently around $53K,” he said recently.

“Almost $53K is also the price of BTC at the $1 trillion-dollar bitcoin market cap, which may have psychological significance for investors and traders alike,” Killeen said.

Pankaj Balani, Co-Founder and CEO delta exchange, responded to these claims.

“Yes. I agree with this assessment. 1 Ton MCAP as a strong support is also something that I had highlighted in my previous note,” he said.

“We think the market will be limited in the short term. BTC has failed above 60K several times and something has to be done to break that level, at the same time 53-54K, which is also 1TN market cap, acted as a strong support. Will act in,” predicted Balani.

Jake Wujastik, Chief Market Analyst trendspider, offered to take a little different.

“I agree that anytime the dollar cost averaging price is tested, this could be an area for prices to bounce back as the average participant returns to the market to dry up supply,” he said.

However, Wujastik was more skeptical about the claim that a $1 trillion market cap provides significant support.

“I don’t think bitcoin’s market cap provides any psychological significance for investors and traders as the price level is generally thought of as an important psychological level for market participants rather than market cap.”

Petr Kozyakov, Co-Founder and CEO of the Global Payments Network Mercuryalso presented his view on the matter.

“Despite the continued selloff we have seen in bitcoin price, the major digital currency has not traded below a 30-day low of $55,632, which demonstrates the validity of the VWAP metric that supports bitcoin price. Holds about $53,000.” He mentioned.

“So far, buyers have been able to shield the market from selling pressure, and this has largely shown how mature the market has been over the past year or so.”

Furthermore, Kozyakov provided a bullish outlook.

“Short-term holders should consider this important to help maintain a healthy market, and as long as the major coin continues to stay above the psychological mark at $53,000, the imminent runup past ATH at $68,789 will be just a matter of time. Of.”

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

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