Bitcoin price is moving back to monthly lows, but analysts agree that the current range is a “buy zone”.
Bitcoin’s downtrend fell a few notches on December 3rd after the price fell to the mid-range of $ 51,000 before tracing back the current $ 53,000 area, and traders find the BTC / BTC daily chart / USD shows a significant increase in sales volume.
Investors seem concerned about the emergence of a new variant of Covid-19 and restrictive comments (in favor of a tight monetary policy) from the US Federal Reserve. Meanwhile, investment legend Charlie Munger has fueled the fire by comparing price action in the crypto market to the dotcom era that ended in a crash.
The sudden drop in the price of Bitcoin had dire consequences. Data from glassnode shows that long positions worth $ 112.4 million were liquidated within 10 minutes. Meanwhile, Coinglass has posted $ 221 million in liquidation in the past 4 hours. This is the largest liquidation Bitcoin has seen since the beginning of September.
Here’s what analysts are currently saying about the market and what to look for in the final month of 2021.
Bitcoin and Ether “Super Sale”
While many were disappointed with Bitcoin’s recent price action, David Lifchitz, managing partner and CIO at ExoAlpha, suggests that “Bitcoin is super priced at $ 54,000 and ETH at $ 3,900. Sale”.
Lifchitz said that the “liquidation of Mt. Gox” will continue to drive Bitcoin price and suggest that investors will likely “remain cautious ahead of delivery expected in the first quarter of 2022”.
The CIO also stressed the need to watch out for the spread and impact of the Omicron variant, as “a bad outbreak leading to a lockdown is sure to hurt the market”.
He also suggested that this could lead to another government stimulus package:
“It would increase global debt and weaken currencies against gold and cryptocurrencies, and inflation money could be exchanged for immutable things like bitcoin. After the initial panic decline, the cryptocurrency could use the situation to build momentum, but what happened before that, even if it remains highly speculative. The next few weeks will tell us whether Santa Claus is coming this year or whether he will continue the lockdown with Covid-19! “
Area Support $ 52,000- $ 53,000
Bitcoin’s lengthy price action in recent weeks was highlighted by crypto research firm Decentrader, which points to price volatility in the lower time frames and a slowing downtrend in the high time frames, fueling traders’ fears that the “bull run” is coming to an end come.”
Analysts believe that once Bitcoin breaks out of its current range, “the most obvious support group will be between $ 52,000 and $ 53,000,” near the point where the price collapsed during the May crash.
“If the price corrects further, the strong support around the 200DMA is $ 46,200 and the lower support is $ 44,300. On the other hand, there is significant resistance at $ 60,000. “
Start as in September 2021
Insights into how the current price action resembles a pullback that happened earlier in the year was provided by the analyst and nickname Twitter user.
Analyst ‘Rekt Capital’ believes there are similarities in the recent fall to the September 2021 sell-off.
“In September, BTC fell 25%. This is when BTC investors are extremely scared. BTC then reversed to a new all-time high (ATH). Currently, BTC is down 23%. It is likely that the Fear & Greed Index will show extreme fear soon. Similar retracement depth. Investor sentiment is similar. “
At the time of going to press, the Crypto Fear & Greed Index has entered the zone of extreme fear at 25/100. Hopefully Rekt Capital’s prediction will come true soon.
The total capitalization of the crypto market is currently $ 2.531 trillion and the dominance of Bitcoin is 41%.
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Disclaimer: This article is for informational purposes only, not investment advice. Investor should research carefully before making decision. We are not responsible for your investment decision
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