Bitcoin price drops again?Analysts warned that BTC may fall again before it “slowly rises”

Bitcoin price drops again?Analysts warned that BTC may fall again before it “slowly rises”



Bitcoin (Bitcoin) Rebounded to close to $50,000 on December 5th as traders continued to count recent events.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Data from Cointelegraph Markets Pro with Transaction view Following the less volatile Bitcoin/USD, it rose to $49,777 on Bitstamp before consolidating.

Freshly baked Fell to $41,900 Earlier on Saturday, the currency pair stabilized as the market digested the latest major deleveraging event that hit Bitcoin this year.

However, for some people, there are good reasons to be cautious and not to discount long-term lows again.

Lex Moskovski, CIO of Moskovski Capital, said: “We fell again. CT lost and sold more. But it was miraculously acquired,” Expected Some comments on the prospects of Bitcoin.

“Integrate, slowly grind up.”

This slow growth now has important support levels that need to be regained: $50,000 and a $1 trillion market capitalization area slightly above $53,000, as well as various previous historical highs.

At the same time, trader and analyst Rekt Capital sees the 200-day exponential moving average (EMA) as a potential line. The support line has been maintained since August but was broken during Saturday’s decline.

In late September, when BTC/USD last traded at the level of 42,000 US dollars, it also saw a test of the 200 EMA. Rekt Capital pointed out that the severity of the decline is still dwarfed by the previous decline in history.

“You survived the -84.5% BTC bear market. You survived the -63% BTC crash in March 2020. You survived the -53% BTC crash in May 2021. You will also survive this time. Survived the crash,” he Add to.

Is it enough?

Observations of the current state of the derivatives market indicate Funding rate At the time of writing, it was either neutral or slightly negative, which is a significant difference from a few days ago.

related: As ETH/BTC hit a 3-year high, Ethereum acted as a “hedge” in the collapse of Bitcoin prices

In the deleveraging process, a large number of open futures contracts were erased, and more than 2.5 billion US dollars in encrypted accounts were liquidated.

The question for commentators now is whether enough bubbles have been eliminated to ensure steady growth is restored.

At the same time, the weekly closing price looks set to be Bitcoin’s lowest point since the beginning of October.