Analyst says Bitcoin is “sold” after BTC price fell below $ 54,000

Bitcoin’s downtrend (BTC) extended a few notches lower on December 3rd after the price fell below USD 54,000 and traders will find that the daily BTC / USD chart shows a significant increase in sales volume.

Investors appear concerned about the emergence of a new variant of Covid-19 and aggressive comments from the Federal Reserve. Meanwhile, veteran investment icon Charlie Munger started the fire by comparing price action in the crypto market to the dot-com era that ended with a bursting bubble.

Here’s what analysts are saying about the market right now and what to look for as 2021 cools down.

Strong lower support at $ 52,000- $ 53,000

The “listless” nature of Bitcoin’s price movement in recent weeks has been highlighted by crypto research firm Decentrader, which has pointed to variable price movement in a lower timeframe and evidence of price movement is what creates heightened fear among traders “that the Bull run could be over ”.

Analysts believe that once BTC breaks out of its current range, “the most obvious support group will be between $ 52,000 and $ 53,000,” near the point where the price collapsed during the May crash earlier in the year.

More decentralized said

“When we have a deeper correction, the strong support around the 200DMA is $ 46,200 and the lower support is $ 44,300. Conversely, there is significant resistance at the $ 60,000 figure. ”

Bitcoin and Ether are “sold” on these levels

While many were disappointed with Bitcoin’s recent price action, David Lifchitz, ExoAlpha’s managing partner and chief investment officer, said that “Bitcoins and ethers were bought and sold” when they hit $ 54,000 and $ 3,900, respectively, for those who get them can these levels.

According to Lifchitz, the Bitcoin price will continue to be driven by “Mt. Gox ”, suggesting that BTC investors are likely“ to remain cautious ahead of the expected payout in the first quarter of 2021 ”.

Lifchitz also highlighted the prevalence and impact of the Omicron variant of Covid-19 as a situation to watch out for as “a bad outbreak leading to a lockdown will inevitably affect the market first”.

Lifchitz suggests that this could lead to another round of government incentives “that will add to global debt and weaken currencies versus gold and crypto, while joke money could be exchanged for immutable things like bitcoin.”

Liftchitz said

“So after the initial panic decline, crypto can benefit from such an outcome if we refer to what happened before, even if it is still highly speculative. We will know in the next few weeks whether Santa Claus is coming this year or he continues to close doors with Covid! ”

Related: US Infrastructure Bill Could Boost Digital Assets – But First, Some Fixes

It looks like September 2021 again

The analyst and Twitter user “Rekt Capital”, the sent The graph below shows this most recent drop along with the September 2021 BTC drop.

Right Money said

“In September BTC fell -25%. This is when BTC investors are extremely scared. Then BTC reversed to a new ATH. Now BTC is down -23%. There is a chance that the Fear & Greed Indicator will soon be showing Extreme Fear. Similar retracement depth. Investor sentiment is similar. ”

The total crypto market cap is $ 2.531 trillion and the dominance of bitcoin is 41%.