The leader of the cryptocurrencies seems to have found support very close to the last growing low ($ 57,855) and what the price draws us is a side in the last month with support at $ 58,000 and resistance at $ 69,000. And if the base of this side were to lose the following support levels are found at the September highs ($ 53,125) and the base of what appears to be a short-term bullish channel, now at approx. u $ s52,000.
The truth is that the decline is nothing more than “noise” for José María Rodríguez, technical analyst at Bolsamanía, “the umpteenth fall within a fundamental upward trend.” A normal reaction to a cocktail of negative news that has served as an excuse to drain the latest excesses after a seven-week rally from $ 40,000 to $ 69,000 on November 10 and clear the market of speculators.
Twitter’s statements about not buying Bitcoins, US President Joe Biden’s signing of the infrastructure law forcing crypto brokers to tighter restrictions, increased pressure from China on cryptocurrency mining … all these factors are have been used as sales catalysts.
“The position of China against the ‘crypto’ industry is no longer news, nor the corrections that are observed in reaction to the news coming from the Asian country. On this occasion it has come to the media that China will control that state companies do not carry out activities related to cryptocurrencies, considered illegal and bitcoin has reacted with a correction of almost 8%, “commented Alejandro Zala, Country Manager of Bitpanda in Spain.
“The most recent example is on September 24 when China reiterated the prohibition of any type of operation with cryptocurrencies. On that occasion, again, bitcoin suffered a correction close to 8% for four days, followed by 21 days in the one whose value rose almost 60% reaching its historical maximum, which in any case was exceeded again a little more than two weeks later. We will see what happens this time, “said this analyst.
For the moment, Support at $ 57,800 was not tested, as the market recovered $ 60,000 after landing at $ 58,500. Strong market hands contributed to Tuesday’s short-term rebound. Specifically, the third largest Bitcoin address has increased its holdings by 207 bitcoins, ‘CoinTelegraph’ reports. And this behavior of the whales is common in bull cycles.
However, technical indicators suggest that Bitcoin is not out of the woods yet, since a fall towards US $ 57,000 is possible. “A breakout of this level could point to a deeper drop, and attention could shift back to the $ 50,000 region, but as is always the case with bitcoin, that’s never clear,” said Craig Erlam, analyst at Onda. . “The extreme volatility that the market is prone to could cause a possible domino effect if more negative news emerges that takes prices to new lows,” commented XTB experts.
Of course, they point out that “while these factors may scare some investors and newcomers to the market, some experienced traders will have seen corrections of similar size in the past and could be seeing opportunities as the adoption of cryptocurrencies continues to advance” .
However, “it appears that bitcoin bulls are losing power and are likely to put up a fight, especially if the price breaks below the 50-day SMA on the daily time frame,” says Naeem Aslam, Ava Trade analyst. Having said that, “Bitcoin was supposed to have a correction according to the RSI indicator, and that correction has finally arrived“, he adds.
From a technical point of view, “if the price sustains above the 50-day SMA, we could see another substantial rally for Bitcoin. “said the expert.
Aslam also notes that “the biggest fear among crypto traders is whether crypto winter is here.” “Nobody wants to see another crypto winter, as it is difficult to forget the dire consequences of the previous one.” “On the other hand, what traders have been waiting for is a strong rally, especially given the fact that during this time of year, we usually see a strong rally for cryptocurrencies – of course, with the exception of the crypto winter,” this expert concluded.
Source From: Ambito
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