Bitcoin price fell below the $ 57,000 mark this morning, which sparked a widespread sell-off in ether and altcoins.
Data from TradingView shows that the USD 60,000 support level has been broken, allowing the bears to take control of the market in the short term.
Bitcoin price chart 4 hours | Source: TradingView
Another analysis of Bitcoin price was provided by trader “John Wick”, who tweeted to highlight the fact that even seasoned traders see concerns about today’s price developments.
We’re really trying really hard to keep this support zone that I had. NGL I’m not so happy to see that red bar
Doesn’t mean we are 100% missing support, but it does tell us the chances are starting to stack against it
If you’re long-term, you shouldn’t mind that pic.twitter.com/D4EvI8RcnD
– John Wick (@ZeroHedge_) November 18, 2021
“BTC is really trying very hard to keep the support it already has. I wasn’t pleased to see that red bar. That doesn’t mean it has completely lost support, but it does show that it is wobbling. However, if you’re playing long-term, you shouldn’t mind. “
Massive price drops “will be relatively short-lived”
According to a recent report by crypto research firm Delphi Digital, “the initial sell-off was largely due to a wave of liquidations rather than a fundamental shift,” suggesting that this withdrawal is on the way to becoming an attractive entry point “for traders looking for more market access .
Short term technical outlook for Bitcoin | Source: Delphi Digital
Delphi Digital emphasized that while the crypto market has seen significant price declines over the past week, this has not helped avoid a general surge in “total liquidations on the major exchanges that collapse”.
What could happen next, Delphi Digital sees a possible drop to $ 55,000 “if selling pressure continues to push Bitcoin below $ 57,750,” but analysts also suspect that “any drop will be relatively short-lived.”
“If Bitcoin loses another leg, it could create an even more attractive entry point for those looking to build long-term trust.”
Watch out for these bitcoin prices
In the version To update On his latest YouTube, analyst Filbfilb warned that the 50-day and 100-day moving averages (DMA) are all that could help the bulls.
Bitcoin then fell below the 50DMA, leaving only the 100DMA above $ 53,000.
“I would definitely go back long at $ 53,000,” Filbfilb said, claiming that 100DMA protection was “reasonable.”
This level coincides with Bitcoin’s market cap of $ 1 trillion, a milestone that was previously held for some time.
What has been causing problems for Filbfilb and others in the meantime, despite the drop in prices, is an excessive interest in the Bitcoin derivatives market.
He suspects this is because traders are going long – and the result is likely to be a rally or “undo” of their positions.
Open Bitcoin Futures | Source: Coinglass
Likewise, funding rates are still rising on some of the major exchanges, suggesting a return to higher price expectations.
Bitcoin Funding Rate | Source: Coinglass
Elsewhere, some great holders buy dips.
According to the data Blockchain, the third largest Bitcoin address, has continued to accumulate this week. After increasing the balance by 207 BTC to $ 62,000, the larger accumulations of 1,647 BTC, 700 BTC and 484 BTC were updated.
As Cointelegraph reported, those who have bought in the past six to twelve months are still adamant about not selling a single BTC. Even at ATH, sales remain low, with wallet addresses that last for about a year making up most of the current Bitcoin supply.
What about the ETH?
Delphi Digital shared a similar opinion on the price of ether, which quickly fell below $ 4,000. They stressed that Ether is trying to convert the long-term resistance established in May into support, and if successful, Ether will “appear ready for the uptrend to continue”.
Important levels of support and resistance for Ether | Source: Delphi Digital
Delphi Digital says:
“If price support gives way, the bulls will likely test again and bounce off the upper trendline set from the May 2021 high to the September 2021 high.”
Analyst “Pentoshi” released the chart below to highlight that ETH is breaking below the previous ascending channel and retesting the support resistance level found at the all-time high (ATH) before this one.
1 day frame ether price chart | Source: TradingView
While some traders see this as an ominous event, Pentoshi sees the move as a positive development as it “stays above a bullish market structure”.
However, Pentoshi issued a warning that:
“What you don’t want to see the most is ETH slipping below its previous ATH.”
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to AZCoin News