BTC’s price fell below $56,000 again, prompting analysts to discuss various bullish and bearish scenarios for Bitcoin’s near-term price action.

The cold-blooded are collectively calling for a deep breath and a step back to see the long-term future of bitcoin (BTC) price and the broader crypto market, but Monday’s drop below $56,000 has left traders confused.

Data from Cointelegraph Markets Pro and TradingView shows that after starting the week around $60,000, several days of bears hitting the price of Bitcoin led to a revision to $55,600.

1-day BTC/USDT chart. Source: Trade View
Here’s what analysts have to say about the recent bitcoin price action and what to watch out for in the coming days.

Look at the end of the month
Independent market analyst Rekt Capital discussed a closer look at Bitcoin’s monthly price action, which published the chart below, showing BTC on the verge of retrace its all-important monthly close at $58,728.

BTC/USD monthly chart. Source: Twitter
According to Rekt Capital, the price action for BTC has been “promising” so far and is now “really close to returning that monthly level as support (green),” but the analyst cautioned that there could be a lot more to come soon. Volatility. Deadline as the market closes in the month of November.

Rekt Capital said:

“But it’s important to note that BTC can still swing slightly into the end of the month. What matters is the monthly closure.”
Trustee Mt.Gox distributes 145,000 BTC
Offering a look at the possible reasons for the pullback, ExoAlpha’s Managing Partner and Chief Investment Officer, David Lifchitz, referred to last Tuesday’s announcement that Mt.Gox’s trustee will distribute around 145,000 BTC to retail investors holding it in exchange Bought between 2013 and 2015 years.

Lifshitz emphasized that some fear that many of these “parent investors” who “could see windfall profits in the near future” because BTC is 100 times their original purchase price, “are likely to cash out at any cost.” will likely hit the market hard when news of efficient distribution gets out.”

For now, Lifshitz believes that “the sell-off seems to have ended at $57K-$58K support” and “seems poised to revisit $63K and higher in the next few days.”

However, according to Lifshitz, caution is advised as a future sell-off looms following the issuance of BTC Mt.Gox.

Lifschitz said:

“However, Mt.Gox is a sword of Damocles over the market and I don’t think BTC will rally to $100,000 next month because of this threat. The whales held on but didn’t buy much more. I guess they are aware of the upcoming Mt.Gox drama and are waiting to dive into the potentially upcoming big fall. Now that the Mt.Gox hurdle has been cleared, Bitcoin will have a clear path to new highs barring some crazy rules that could ruin the party.”
Related: Metaverse and Gaming Altcoins Merge with Blockchain as Bitcoin Looks for Support

Historical analysis suggests that bitcoin price may have bottomed
Finally, an analyst and Twitter user using the alias “TechDev” published the following charts comparing Bitcoin’s price action in 2017 to the current market.

BTC price development 2017 compared to BTC price development 2021 Source: Twitter
According to TechDev, the current correction is “nearly perfect after mid-November 2017” with “only a slight difference” at the “50-day simple moving average (SMA) breakout.”

techdev said

“We may not have bottomed out yet, but it’s close. Everything I’m seeing points to a high probability that the next 5-15 weeks will be massive (including BTC and altcoin mania).”
The total cryptocurrency market cap is currently $2.51 trillion, with a Bitcoin dominance rate of 41.9%.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Every step of investing and trading involves risk, you should do your own research when making a decision.

Source: CoinTelegraph