Cooler Head takes a collective deep breath and a step back to see the long-term outlook for the future price of Bitcoin (BTC) and the broader cryptocurrency market, but today’s drop below $56,000 is surprising to traders.
Data from Cointelegraph Markets Pro and TradingView shows that after the start of the week near $60,000, several days of bears hitting the price of Bitcoin led to another visit to $55,600.
BTC/USDT 1-day chart. Source: TradingView
Here’s what analysts are saying about the latest Bitcoin price movement and what you should look out for in the coming days.
Follow the end of the month
A closer look at Bitcoin’s monthly price action was discussed by independent market analyst Rekt Capital, who released the following chart showing that Bitcoin is on the cusp of a massive monthly close correction close to $58,728.
BTC/USD monthly chart. Source: Twitter
According to Rekt Captial, BTC price action so far has been “promising” and is now “very close to reclaiming this monthly level as support (green),” but the analysis warned that there is still more volatility in the near future as the market closes in November.
Rekt Capital sa,
“But it is important to note that Bitcoin can still easily see this for the rest of the month. What matters is the monthly convergence.”
The guardian of Mt. Gox distributes 145,000 bitcoins
Understanding the possible reasons for the withdrawal was suggested by David Lifchitz, CEO and Chief Investment Officer of ExoAlpha, who referred to the November 16 announcement that Mt.Gox will distribute approximately 145,000 BTC to retail investors who buy them on the exchange. stock market from 2013 to 2015.
Lifshitz expressed his concern that many of these “family investors” who are about to “get an unexpected future” because BTC is 100 times the original purchase price “are likely to pay them any cost, which will likely hit the market pretty tough.” When news of effective distribution comes in.”
At this point, Lifshitz believes that “selling appears to be above the $57,000-$58,000 support level,” and it appears that “it is poised to reach $63,000 and higher again in the next few days.”
But according to Lifshitz, care must be taken going forward, as the risk of a future sale will reach Mount Gox. BTC announced.
“But Mt.Gox this is Damocles’ sword on top of the market, and I don’t think BTC will go up to $100,000 next month if the threat persists. Whales commented but they didn’t buy much more. I think they are well aware of the upcoming drama at Mt.Gox and are waiting to load The next potential massive deflation. Now that the Mt.Gox barrier has been broken, Bitcoin will have a clear path to new heights, except for some crazy rules that could ruin the party.”
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Historical analysis indicates that Bitcoin price may have bottomed.
Finally, an analyst and Twitter user under the pseudonym TechDev published the following charts comparing the price dynamics of Bitcoin in 2017 with the current market.
BTC price movement in 2017 compared to BTC price movement in 2021. Source: Twitter
According to TechDev, the current correction “follows mid-November 2017 to near perfection,” with the “only slight difference” being a “violation of the 50-day simple moving average (SMA)”.
We may not have reached the bottom, but it is close. All I can see is that there is a huge possibility that the next five to fifteen weeks are going to be huge (including BTC and all this craziness).
The total market capitalization of the cryptocurrency is now at $2.51 trillion, and the bitcoin dominance rate is 41.9%.