Analysts Point To Bullish And Bearish Scenarios As Bitcoin Price Falls Below $ 56,000

Calmer folks are calling for you to take a deep breath and step back to see the long-term outlook for the price of Bitcoin (BTC) and the cryptocurrency market in general, but today’s drop below $ 56,000 is raising eyebrows among traders.

Data from Cointelegraph Markets Pro and TradingView show that After starting the week near $ 60,000, several bearish days hitting the price of Bitcoin resulted in a new visit to $ 55,600.

BTC / USDT 1-hour chart. Source: TradingView

Here’s what analysts have to say about the recent Bitcoin price action and what to expect in the days ahead.

All eyes on the monthly closing

The independent market analyst ‘Rekt Capital’ discussed a closer look at the monthly price action of Bitcoin, who public The graph below shows that BTC is close to recovering a significant monthly close level close to $ 58,728.

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

According to Rekt Captial, the price action for BTC has been “promising” so far and now is “very close to recovering this monthly level as support (green)”, but the analyst warned that there could still be a lot of volatility in the near term as the market closes in November.

Rekt Capital said:

But it is important to note that BTC could still easily carry on this way for the rest of the month. The monthly closing is what matters. “

Mt. Gox manager to distribute 145,000 BTC

David Lifchitz, Managing Partner and Chief Investment Officer at ExoAlpha, provided insight into the possible reasons behind the pullback, noting the November 16 announcement that Mt. Gox trustee will distribute around 145,000 BTC to retail investors who have used the exchange between 2013 and 2015.

Lifchitz highlighted the concerns some have that many of these “family investors” what are you waiting for “receive a windfall in the near future” because BTC is 100 times more expensive than its original purchase price “They will probably sell them at any price, which is likely to hit the market quite a bit when the news of the actual distribution hits.”

For now, Lifchitz feels that “The sell off appears to have ended at the $ 57,000 to $ 58,000 support level” and it seems “set to hit $ 63,000 and more again in the next few days.”

However, according to Lifchitz, the caution is justified going forward, as there is a threat of a future sell-off once the Mt. Gox BTCs are released.

Lifchitz said:

“However, that Mt.Gox is a sword of Damocles over the head of the market, and I don’t see BTC reaching $ 100,000 next month with that threat hanging. The whales have held their ground, but they haven’t bought much. more. I suppose they are well aware of the Mt. Gox drama and are waiting to charge in the potential drop. Now once the Mt.Gox hurdle is cleared, Bitcoin will have a clear path to hit new highs barring some crazy regulations that they could spoil the party. “

Historical Analysis Suggests Bitcoin Price May Have Bottomed Out

The analyst and pseudonymous user of Twitter, “TechDev” offered some final information and public the following charts comparing the price action of Bitcoin in 2017 with the current market.

BTC price action of 2017 vs price action in 2021. Source: Twitter

According to TechDev, the current correction is “tracking mid-November 2017 to near perfection” with the “only minor difference” being “a breakout of the 50-day simple moving average (SMA)”.

TechDev said:

“We may not have bottomed out, but it’s close. Everything I’m seeing suggests a high probability that the next 5-15 weeks will be massive (including the BTC craze and highs).”

The global cryptocurrency market capitalization currently stands at $ 2.51 trillion and Bitcoin’s dominance index is 41.9%.

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

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Helen Hernandez is our best writer. Helen writes about social news and celebrity gossip. She loves watching movies since childhood. Email: Phone : +1 281-333-2229

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