Analysts identify bullish and bearish scenarios if Bitcoin price falls below $ 56,000

Cooler heads call for a deep breath and step back to see the long-term outlook for the future of Bitcoin (BTC) price and the broader crypto market, but a dip below $ 56,000 worries traders today.

Data from Cointelegraph Markets Professional and TradingView shows that after starting the week near $ 60,000, several days of bitcoin price decline resulted in a re-entry to $ 55,600.

Here’s what analysts have to say about the latest Bitcoin price action and what to look out for in the days to come.

Track the results every month

An independent market analyst ‘Rekt Capital’ who took a closer look at Bitcoin’s monthly price action. sent The graph below shows that BTC is in the process of regaining an important month-end close near $ 58,728.

According to Rekt Captial, BTC’s price action has been “promising” so far and is now “very close to recapturing this monthly level as (green) support,” but analysts warn that there could be a lot of volatility in the near future if the market closes in November.

Rekt Capital said

“But it’s important to note that BTC is still clearly visible for the rest of the month. The monthly closing is important. “

Trustee Mt. Gox distributes 145,000 BTC

David Lifchitz, Managing Partner and Chief Investment Officer at ExoAlpha, explains the possible reasons for the withdrawal of David Lifchitz, Managing Partner and Chief Investment Officer at ExoAlpha. Gox will distribute around 145,000 BTC to retail investors that they bought on the exchange between 2013 and 2015.

Lifchitz highlighted concern among some that many of these “mother” investors will “get a head start” in the near future if BTC “makes money” 100 times its original purchase price. as news of the efficient sales breaks fairly strong on the market. ”

At the moment, Lifchitz believes “the sell-off appears to have ended at the $ 57,000- $ 58,000 support” and looks “poised to hit $ 63,000 or more in the next few days.”

However, according to Lifchitz, caution is advised as a future sell-off threatens if BTC Mt. Gox is released.

Liftchitz said

“However, Mt.Gox is a sword of Damocles at the forefront of the market and I don’t see BTC rising to $ 100,000 next month with this threat. Whales were kept close but stopped buying. I think they are well aware of the Mt.Gox drama ahead and are waiting to prepare for the big sale that is coming. Now that the Mt.Gox barrier is lifted, Bitcoin will have a clear path to new highs and remove some crazy regulations that could have harmed the party. ”

Related: Metaverse and blockchain gaming altcoins soar as Bitcoin seeks support

Historical analysis shows that Bitcoin price may have bottomed out

One final glimpse was provided by the analyst and Twitter user nicknamed “TechDev” who sent The following charts compare the price action of Bitcoin 2017 with the current market.

According to TechDev, the current correction will be “almost perfect after mid-November 2017”, with the “only minor difference” being a “breakthrough in the 50-day Simple Moving Average (SMA)”.

TechDev speak,

“We may not have bottomed out yet, but it’s close. All I see is that the next 5-15 weeks will very likely be huge (BTC and Alt Mania included). ”

The total crypto market cap is $ 2.51 trillion and the dominance of Bitcoin is 41.9%.

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