The more calm heads call for a collective deep breathe and a step back in order to see the long-term outlook of Bitcoin (BTC), and the wider crypto market. However, traders are expressing concern at today’s fall below $56,000.
Cointelegraph Markets Pro and TradingView data show that Bitcoin prices rose after a week of bearish trading. The price of Bitcoin retreated to $55,600.
BTC/USDT 1-day chart. Source: TradingView
Here are the views of analysts on the most recent price action in Bitcoin. Also, what should you be watching for in the coming days.
Keep an eye out for the monthly close
Independent market analyst “Rekt Capital” discussed the monthly price action of Bitcoin and posted the following chart. It shows that Bitcoin is very close to recovering a key monthly close level at $58,728.
BTC/USD 1-month chart. Source: Twitter
Rekt Captial said that the price action for Bitcoin has been “promising” so far, and is now “really near to reclaiming the monthly level of support (green), but the analyst cautioned that volatility could still exist in the near future as the market closes the month of November.
Rekt Capital said,
“But it is important to remember that BTC could still easily seesaw like this for the rest of the month. It is the monthly close that matters.”
Mt. Gox trustee will distribute 145,000 BTC
David Lifchitz (managing partner at ExoAlpha and chief investment officer), offered insight into the reasons for the pullback. He pointed to the Nov.16 announcement by the trustee of Mt. Gox will distribute approximately 145,000 BTC for retail investors who purchased them on the exchange in 2013 and 2015.
Lifchitz raised concerns that these “mom-n-pop investors” could “receive an immediate windfall” because BTC is 100 times more than their original purchase price. “They will likely cash them out at any prices, which will likely hit pretty hard the markets when the news about the effective distribution will come out.”
Lifchitz believes that the selloff is over at $57,000 to $58,000 support level and that it will “reach again towards $63,000 or higher in the coming days.”
Lifchitz warns that caution should be taken as there is a possibility of a sell-off in the future. Gox BTC have been released.
“But, Mt.Gox remains a Damocles sword over the market’s head and I don’t see BTC reaching $100,000 next month with that threat hanging. Whales have not bought anything more, but they have remained steadfast. They are probably aware of the Mt.Gox drama and are eager to take advantage of the possible huge dip. Bitcoin will now have a clear path to new heights once the Mt.Gox hurdle is cleared. This excludes crazy regulations that could ruin the party.
Related: Metaverse and Blockchain Gaming Altcoins Rise While Bitcoin Searches for Support
Historical analysis suggests that Bitcoin’s price may have bottomed
TechDev, a pseudonymous analyst on Twitter, posted these charts that compare the 2017 Bitcoin price action with the current market.
2017 BTC price action vs. 2021 BTC price action. Source: Twitter
TechDev says the current correction “follows 2017’s mid Nov to near perfection”, with the “only minor variation” being a break in the 50-day simple movement average (SMA).
“We may not be at the bottom, but we are getting close.” All I see suggests that the next five to fifteen weeks will be huge (including alt mania and bitcoin).
The total cryptocurrency market is now worth $2.51 trillion, and Bitcoin is the dominant currency at 41.9%.
com. You should do your research before making any investment or trading decision.