Categories: Ethereum

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.

BTC / USDT 4-hour chart. Source: TradingView

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.

Short term technical outlook for BTC / USD. Source: Delphi Electronic

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”.

Important levels of support and resistance for Ether. Source: Delphi Digital

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.

https://twitter.com/ZeroHedge_/status/1461390121392029699?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
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.

ETH / USD 1-day chart. Source: Twitter

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%.

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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