Bitcoin drops below $ 56,000 for 6 days in a row

Bitcoin continued its decline on November 19, falling below the $ 56,000 mark for six consecutive days for the first time since October 2021.

The world’s largest digital currency hasn’t seen such a long decline since May 2021. Unlike other traditional assets, virtual assets trade on weekends, so the decline includes Saturday and Sunday.

At 2 p.m. on November 19 (Vietnam time), Bitcoin fell more than 6% to 55,978 USD. Compared to the record high of 68.991 USD Founded in early October 2021, Bitcoin is down more than 15%.

Ethereum, Solana and Memecoins like Dogecoin are all in the red.

The development of the top 10 largest cryptocurrencies

Source: CoinMarketCap

Strategists cite a number of reasons for the Bitcoin sell-off this week, including regulatory blows from China and an overheated Bitcoin bull chain. Many technical analysts are currently looking for technical signals to see how far Bitcoin can go.

Bitcoin has fallen below the 50-day moving average (MA) – an important level for technical analysts. According to Matt Maley, Head of Market Strategy at Miller Tabak + Co, the top level of support for Bitcoin is 54,500. USD. “If, however, it falls below the threshold of 50,000” USD That’s a very serious warning sign, “he said.

Meanwhile, Ethereum – the second largest digital currency – is down above the MA50 but is still down 13% since last Sunday.

Even so, both Bitcoin and Ethereum have risen sharply this year, and some indicators suggest that the Bitcoin sell-off may be over soon.

“The decline, although severe, has not affected the positive mid-term indicators,” said Katie Stockton, founder and managing partner of independent research firm Fairlead Strategies. “So we expect the decline to end by the end of this week.”

Vu Hao (according to Bloomberg)