Traders say Bitcoin’s drop to $ 57,000 is an “attractive entry point”
Bitcoin price fell to today’s lows and the brief visit at the $ 56,000 level resulted in a drastic sell-off of ether and altcoins.
Data from Cointelegraph Markets Pro and TradingView show that the $ 60,000 support was broken at the start of the US session, allowing the bears to take control of the market for a brief period.
Here’s what analysts have to say about price action today, and whether traders should be concerned about additional pullbacks.
Large payouts “will be relatively small”
According to a recent report by crypto research firm Delphi Electronic, “the initial sell-off was primarily driven by a wave of liquidations rather than a fundamental narrative change,” suggesting that this retreat is likely to be short-lived and potentially ” an attractive entry point ”for dealers who want to gain more market presence.
Delphi Digital pointed out that while the markets saw a significant average decline over the past week, this has not helped to prevent an overall surge in “total liquidity on the major exchanges that are collapsing”.
What happens next for BTC, Delphi Digital sees a possible drop to $ 55,000 “if selling pressure continues to push BTC below $ 57,750,” but analysts also anticipate that “any drop will be relatively short-term.” .
Delphi Electronic said:
“If BTC loses another leg, it could create an even more attractive entry point for long-term believers looking to accumulate.”
The company also made a similar statement on the price action of Ether (ETH), which briefly fell below $ 4,000 today. Delphi Electronic highlights the fact that Ether is trying to turn a long-term resistance level established in May into support, and suggests that if it does, Ether will be “ready for the trend to continue”.
Delphi Electronic said:
“If price support gives way, hopes for the bulls of a possible retest will turn and bounce off the upper trendline set from the May 2021 high to the September 2021 high.”
Long term owners can count on it
Another analysis of the Bitcoin price is provided by the options trader and Twitter analyst, nicknamed “John Wick”, who published the following tweet highlighting the fact that even seasoned traders also see concerns about today’s price developments.
We’re really trying really hard to keep the support that I already have. NGL I’m not so happy to see that red bar
That doesn’t mean we don’t support 100%, but it does tell us that the chances are starting to pile up what it contains.
If you stay longer you won’t mind pic.twitter.com/D4EvI8RcnD
– John Wick (@ZeroHedge_) November 18, 2021
The fall in prices has seriously challenged the lower bound of the current support zone as “the probabilities relative to what they hold” pile up, suggesting Wick that it is really only a problem for short term traders, but long term traders should benefit from this Kind of price promotions don’t be overly concerned.
Related: Bitcoin falls to 1-month lows after BTC price fell 6% to $ 56.6,000
Ether still holds a bullish market structure
When it comes to ether, the market analyst and Twitter user is nicknamed “Pentoshi”. sent The chart below shows a break below the previous ascending channel and retest of the support and resistance found at the previous all-time high.
While some market traders see this as an ominous event, Pentoshi sees the move as a positive development as it is “one of the things in the market that is still bullish”.
Pentoshi, however, issued a couple of warnings when speak,
“What you don’t want to see is it return to this ATH on a closed basis.”
The total crypto market cap is $ 2.508 trillion and the dominance of Bitcoin is 43.4%.