Analysts said that after the price of BTC fell below $54,000, Bitcoin is being “sold”
Bitcoin (Bitcoin) After the price fell below 54,000 USD, the downtrend went further down on December 3rd, and traders will notice that the BTC/USD daily chart shows a significant increase in selling volume.
Investors seem to be worried about the emergence of new variants of COVID-19 and the strong comments from the Federal Reserve. At the same time, veteran investment icon Charlie Munger added fuel to the fire by comparing price movements in the stock market. Encryption market to dot-com era It ended with the bursting of the bubble.
The following is the analyst’s view of the current market, and the things to be aware of when 2021 starts and ends.
Strong support from US$52,000 to US$53,000
Decentrader, a cryptocurrency market intelligence company, emphasized the “listening” nature of Bitcoin price movements in the past few weeks. He pointed out that the price fluctuations in the lower time frame and the evidence of the slow downtrend in the higher time frame are the reasons for the increased fear of traders” The bull market may be over.”
Analysts said that once BTC breaks through the current range, “the most obvious support group is at around US$52,000 to US$53,000”, which is close to the point where prices plummeted during the May crash earlier this year.
“If we make a deeper correction, the strong support area is at $46,200 near the 200DMA and the lower support at $44,300. On the bright side, an important resistance level is at the round of $60,000.”
Bitcoin and Ethereum are “discounted” at these levels
Although the recent price trend of Bitcoin has discouraged many people, David Lifchitz, ExoAlpha’s managing partner and chief investment officer, stated, “When Bitcoin and Ethereum reached $54,000 and $3,900, respectively, they were already “discounted.” Who can get them at these levels.
According to Lifchitz, the price of Bitcoin continues to be hampered by the “Mt. Gox Liquidation Legend”, and he suggested that BTC investors may “be cautious until the distribution is expected sometime in the first quarter of 2021.”
Lifchitz also highlighted the spread and impact of COVID-19, a variant of Omicron, as a situation that requires close attention, because “a severe outbreak that led to a lockdown will definitely put pressure on the market in the first place.”
Lifchitz said that this may lead to another round of stimulus measures by the government, “This will increase global debt and weaken the exchange rate of currencies against gold and cryptocurrencies. At the same time, interesting money can be exchanged for immutable currencies such as Bitcoin.”
“So, after the initial decline caused by the panic, if we refer to what happened before, cryptocurrencies can take advantage of this result, even if it is still highly speculative. We will know in the next few weeks whether Santa Claus is this year Will come, or will he continue to be in lockdown due to COVID!”
Everything starts like September 2021
Analyst and pseudonym Twitter user “Rekt Capital” provided insights on how current price movements are similar to the price pullback that occurred earlier this year Post The chart below shows the recent decline and the BTC price decline that occurred in September 2021.
Rekt Capital said,
“In September, BTC retreated by -25%. This was when BTC investors were extremely fearful. Then BTC reversed to the new ATH. Now, BTC is down by -23%. The Fear and Greed Index is likely to be soon Shows extreme fear. Similar depth of retracement. Similar investor sentiment.”
The overall cryptocurrency market value is now 2.531 trillion U.S. dollars, and Bitcoin’s dominance rate is 41%.
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