Cryptocurrency traders are brainstorming after a sharp fall in the price of Bitcoin (BTC) led to a market sale when almost every single coin in the top 200 flashed red on 16 November.
Data from Cointelegraph Markets Pro and TradingView show that the price of Bitcoin fell to $ 58,609 before they found buyers who brought the price back to $ 60,500.
4-hour BTC / USDT chart. Source: TradingView
Here’s what some traders and market analysts have to say about this latest bearish move and whether it’s just a pressure or a sign of gathering dark clouds.
BTC examines support and resistance levels
An insight into the daily movement of BTC’s price was given by the options trader and Twitter username “John Wick” who posted the following chart which highlighted some important areas for support and resistance.
BTC / USD 1-day chart. Source: Twitter
Vic said that Bitcoin is simply studying the resistance area near its record high, highlighting the possibility of a fall to the $ 58,000-59,500 area, similar to the movement seen in the early hours of trading on November 15.
“We only test the lower area of the resistance zone. If we break it at the end, we can test the support zone.”
Similar comments were given by the market analyst and Twitter username “Rekt Capital”, who posted the following minimized tweet and looked at the BTC price movement on a monthly chart.
As noted by the analyst, the November 16 price action was a retest of the $ 58,700 monthly support / resistance level. Now that BTC has returned to its $ 61,000 monthly level, it could be an optimistic case in the coming weeks if the price manages to close the month above this level.
There’s still a chance to win $ 54,000.
Market analyst and Cointelegraph contributor Michael van de Poppe took a clear look at the latest price action by posting the following chart of possible BTC price movements next week.
BTC / USD hourly chart. Source: Twitter
Van de Poppe says:
“So far, very good for Bitcoin. Tell the support, but there are still some important areas to break here, which has not happened yet. Let’s get to that first. $ 63,000 is important. No outburst [leading] to greater speed. descending “.
According to the chart provided by van de Poppe, if the bearish momentum continues, the price of BTC could fall to the next support level of $ 54,000.
On the topic: Bitcoin sees “Perfect Bounce” at $ 58.5K, while cryptocurrency exceeds $ 875M
Fractal patterns indicate an impending price increase
Crypto Twitter analyst Allen Au has posted the following parallel bitcoin charts for 2013, 2017 and 2021 in response to concerns that $ 69,000 is the peak of the cycle.
One-day BTC / USD charts for 2013, 2017 and 2021. Source: Twitter
According to the analyst, the recent downturn was not the peak of a cycle, but was actually the movement to wave 6 seen in previous cycles. This means that “if it hits the bottom, BTC may soon hit the seventh wave!”
If the displayed wave sequence unfolds, the peak of wave 5 may reach $ 69,000, the lowest of wave 6 is around $ 58,600 with a possible low of $ 53,000, and the peak of the cycle is somewhere between $ 190,000 and $ 260 000 once in December 2021.
The total market value of cryptocurrency is now $ 2.651 trillion, and bitcoin dominance is 43.2%.