Volatility is the name of the game in the cryptocurrency market, and the sale of Bitcoin (BTC) overnight on November 11 is a reminder that new record highs are often followed by sharp saws to important levels of support.
Data from Cointelegraph Markets Pro and TradingView show that after falling to a low of around $ 62,800 late in the evening of November 10, the bitcoin price managed to return to the $ 65,000 level as bulls now seek to consolidate and regroup for a new upward. . …
4-hour BTC / USDT chart. Source: TradingView
Here’s what analysts have to say about the outlook for Bitcoin and the cryptocurrency market as fears of rising inflation dominate headlines in the US.
The fall in bitcoins is a temporary phenomenon
The sight of BTC plunging $ 7,000 may come as a shock to some, but for analyst and Twitter user Nunya Bizniz, the price movement over the past two days has been flat and temporary, based on Bitcoin’s past. performance.
As shown in the chart below, which shows the price of bitcoin along with the 20-day moving average (20-MA), the rise in the BTC price usually follows a withdrawal that touches or briefly falls below 20-MA before the rally. again.
One-day BTC / USDT chart. Source: TradingView
Evergrande and inflation affect the market
Jean-Marc Bonfouss, Head of Asset Management at Tellurian ExoAlpha, spoke about the macro-influencing factors, highlighting the fact that “there has been a lot of talk about the impact of Evergrande’s story on recent market sales.”
To make the development more relevant for cryptocurrency holders, Bonnefos stated that “Evergrande’s news is as much about stocks as Elon Musk’s tweets about cryptocurrencies”, since it is “news to a certain extent manipulated to move markets”.
According to Bonnefos, it seems that “the cryptocurrency markets are overreacting” to the headlines, and “the latest downturn is likely to be a technical consolidation after the sharp gains of the last few days.”
And negative news about Evergrande and tweets from influencers are not limited to the price dynamics of the cryptocurrency market. The recent 6.2% increase in the US consumer price index (CPI) also points to an important factor affecting global financial markets and the price of bitcoin, Bonnefos said.
“The recent shocking US inflation rate should be the main factor supporting bitcoin prices beyond short-term tactical pressure from sellers.”
Related: This is why losing $ 6k in Bitcoin hours was good for BTC pricing
Bitcoin in the process of necessary retesting
The last encouraging word was given by Twitter analyst “GalaxyBTC”, who posted the following chart outlining a possible path for BTC to reach $ 75,000 in the short term.
6-hour BTC / USDT chart. Source: Twitter
The analyst said:
“Yesterday’s retest was necessary for a healthy continuation of the trend. I think now we should start pumping more aggressively. ”
The total market value of cryptocurrency is now 2.847 trillion dollars, and the bitcoin dominance is 43.1%.