3 reasons traders want to buy when bitcoin price drops to $ 58.5k

Cryptocurrency traders are crawling and scratching their heads after a massive drop in Bitcoin (BTC) price sparked a market-wide sell-off, with almost every token in today’s top 200 flashing red.

Data from Cointelegraph Marketplaces Pro and TradingView show Bitcoin price fell to $ 58,609 before finding buyers bidding back to $ 60,500.

Here’s what some traders and market analysts have to say about this recent downward move, and whether or not it’s just a shake or a sign of dark clouds gathering.

BTC researches support and resistance levels

The daily insights into BTC price movement are provided by the options trader and Twitter user nicknamed “John Wick” who sent The following chart shows some key areas of support and resistance.

Wick says Bitcoin is researching resistance around its new all-time high, and he highlighted the possibility of a drop to the $ 58,000- $ 59,500 area, similar to the move in the hour

Buck said

“We are only testing the low end of the resistance range. If we finally break it, we could test the support zone. ”

Similar observations have been made by market analysts and Twitter users nicknamed “Rekt Capital” who sent The following tweet scaled down and looked at the price movement of BTC on a monthly chart.

As the analyst noted, the November 16 price action was a re-test of the monthly support / resistance at $ 58,700. Now that BTC has successfully rebounded near $ 61,000 per month, a bullish case could be brought forward in the coming weeks if price tries to close the month above this level.

There is still a chance that $ 54,000 will arrive

Michaël van de Poppe, market analyst and Cointelegraph employee Michaël van de Poppe, has published the following chart of the possible BTC price development in the next week.

van de Poppe says

“So far, so good with Bitcoin. Step out of support but still need to break through a few key areas here that have not yet happened. Do that first. $ 63,000 is important. No breakthrough there [leads to] further downward momentum. ”

According to the chart provided by van de Poppe, if the downward momentum continues, BTC price could fall to the nearest support at $ 54,000.

Related: Bitcoin “Picture Perfect” staged at $ 58.5,000 while crypto liquidations hit $ 875 million

Fractal patterns suggest an imminent rally

Crypto Twitter Analyst ‘Allen Au’ sent The following Bitcoin Track Tune Charts from 2013, 2017, and 2021 in response to concerns that $ 69,000 could be a cycle high.

According to the analyst, the recent downturn is not the peak of the cycle but is actually the movement of wave 6 seen in previous cycles. This means that if BTC hit the bottom, it could soon hit wave 7!

If the outlined wave sequence takes place, the high of wave 5 could be at 69,000 USD, the low of wave 6 at 58,600 USD with a decrease to 53,000 USD and the cycle highs in the range between 190,000 USD and 260,000 USD occur around the December 2021.

The total capitalization of the crypto market is currently $ 2.651 trillion and the dominance of Bitcoin is 43.2%.

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