Bitcoin price fell to new lows today and the brief visit at the $ 56,000 level sparked a sharp sell-off of ether and altcoins.
Data from Cointelegraph Markets Pro and TradingView shows that the USD 60,000 support was broken in the early morning hours of the US trading day and this allowed the bears to briefly take control of the market.
Here’s what analysts have to say about price action today, and whether traders need to worry about a deeper drop.
The big falls “will be relatively short-lived”
According to a recent report from the cryptocurrency research firm Delphi Digital: “The initial sale was mainly driven by a sell-off rather than a fundamental narrative change.” This suggests that this pullback may be short-lived and potentially “an attractive entry point” for traders looking for more exposure to the market.
Delphi Digital noted that while there has been significant deleveraging across the market over the past week, it has not helped to prevent the general surge in “total sell-offs on major exchanges that coincide with every significant drop in prices”.
As for BTC next, Delphi Digital sees the possibility of a drop to $ 55,000 “if selling pressures keep pushing BTC below $ 57,750,” but analysts also suggested that any “drop will be relatively short-lived”.
Delphi Digital says:
“If BTC sees another downtrend, this could create an even more attractive entry point for those who have long-term conviction and want to accumulate.”
The company made similar statements regarding the Ether (ETH) price action, which briefly fell below $ 4,000 today.. The company highlighted the fact that Ether is trying to turn a long-term resistance level established in May into support, suggesting that if this happens, Ether “appears ready for the uptrend to continue”.
The company stated:
“If price support gives way, hopes for the bulls of a possible pullback and rebound would shift on the upper trendline set from the May 2021 high to the September 2021 high.”
Long-term owners can sit back and relax
Another analysis of the price of Bitcoin was provided by the options trader and pseudonymous analyst from Twitter “John Wick” who posted the following tweet highlighting the fact that even the most seasoned traders are concerned about price action today.
We’re really trying really hard to keep this support zone that I had. NGL I’m not so happy to see that red bar
Doesn’t mean we are 100% missing support, but it does tell us the chances are starting to stack against it
If you’re long-term, you shouldn’t mind that pic.twitter.com/D4EvI8RcnD
to???? John wick (@ZeroHedge_) November 18, 2021
We are working very hard to maintain this zone of support that I had above. I’m not going to lie, I’m not so happy to see that red bar.
That doesn’t mean we’ve lost 100% support, but it does tell us that the chances are starting to hold.
If you are working long term, this shouldn’t worry you.
The drop in prices touched the lower bound of the current support zone as “the odds begin to stack against it”, As pointed out by Wick, is really only a problem for short-term traders, but long-term traders shouldn’t be too concerned about this price movement.
Ether still maintains a bull market structure
to Ether, the market analyst and pseudonymous Twitter user, ‘Pentoshi’, released The chart below shows the break below the previous rising channel and retracement to support and resistance levels found at its previous all-time highs.
While some traders have viewed this as an unfortunate turn of events, Pentoshi sees the move positively because “It’s one of the things in a market that is still bullish.”
Pentoshi. However divided a few words of caution:
“What you don’t want to see is it drop below those all-time highs again on closings.”
The total market capitalization of the cryptocurrency is currently $ 2.508 trillion and Bitcoin’s dominance index is 43.4%.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risks, you will need to do your own research when making a decision.