Bitcoin (BTC) fell to its lowest level on November 18, and a brief visit to the $ 56,000 level resulted in a strong sale of Ether (ETH) and altcoins.
Data from Cointelegraph Markets Pro and TradingView show that support of $ 60,000 was broken early in the US trading session, which allowed the bears to briefly dominate the market.
4-hour BTC / USDT chart. Source: TradingView
Here’s what analysts have to say about the current price movement and whether traders should be concerned about further falls.
Major seizures “will be relatively short-lived”
According to a recent report by cryptocurrency research firm Delphi Digital, “the first sale was largely driven by a wave of liquidation rather than a fundamental shift in narrative,” suggesting that the withdrawal may be short-lived and potentially “present an attractive entry point” for traders. who want to gain more market positions.
Bitcoin / USD short-term technical forecast. Source: Delphi Digital
Delphi Digital emphasized that although there has been a significant decline in market influence over the past week, this has not helped prevent an overall increase in “total liquidation on major stock exchanges that coincides with each significant price drop.”
As for whats next for BTC, Delphi Digital sees the possibility of falling to $ 55,000 “if continued selling pressure forces BTC to fall below $ 57,750,” but analysts also suggested that “any withdrawal would be relatively short-lived.”
Delphi Digital stated:
“If BTC releases one more leg, it could create a more attractive entry point for those with long-term beliefs and hopes of hoarding.”
The company also expressed similar sentiment regarding the movement in the price of Ether, which briefly fell below $ 4,000 earlier on November 18. Delphi Digital highlighted the fact that Ether is trying to make the long-term level of resistance set in May supportive, indicating that if possible, ETH will “look ready to continue the trend.”
Important levels of support and resistance for ether. Source: Delphi Digital
Delphi Digital stated:
“If price support yields, the bullish hope will shift to a potential retest and bounce off the upper trend line from the May 2021 high to the September 2021 high.”
Long-term holders can be calm
Further analysis of the bitcoin price was provided by options trader and Twitter analyst under the pseudonym “John Wick”, who posted the following tweet highlighting the fact that even experienced traders are on guard against the price change on November 18.
The fall in prices posed a major challenge to the bottom line of the current support area as “odds are starting to rise towards it,” as Wake notes is actually a problem for short-term traders as well as long-term. Traders should not be too worried about this price movement.
Related: Bitcoin falls to 1-month lowest price after falling 6% BTC price to $ 56.6k
Ether still maintains a beef market structure
On the air, market analyst and Twitter user Bentoshi released the following chart that highlighted a break below the previous bullish channel and tested support and resistance again at its previous record highs.
1-day ETH / USD chart. Source: Twitter
While some market traders saw this as an ominous turnaround, Bentoshi sees the move as a positive development because it is “one of the things in the market that is still bullish.”
However, Bentoshi issued some warnings, saying:
“What you do not want to see is go back to those places in the end.”
The total market value of cryptocurrency is now $ 2.508 trillion, and bitcoin dominance is 43.4%.