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3 reasons why traders want to buy the Bitcoin price dip to $58.5K

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Cryptocurrency merchants are scrambling and scratching their heads after a sharp drop in Bitcoin (BTC) worth triggered a market-wide sell-off that has almost each token within the top-200 flashing purple on Nov. 16. 

Information from Cointelegraph Markets Pro and TradingView reveals that Bitcoin worth dropped as little as $58,609 earlier than discovering consumers who bid the value again to $60,500.

BTC/USDT 4-hour chart. Supply: TradingView

Right here’s a have a look at what some merchants and market analysts are saying about this latest draw back transfer and whether or not or not it’s merely a shakeout or an indication that darker clouds are gathering.

BTC is exploring assist and resistance ranges

Perception into BTC’s every day worth motion was supplied by choices dealer and pseudonymous Twitter consumer ‘John Wick’, who posted the next chart highlighting some vital assist and resistance zones.

BTC/USD 1-day chart. Supply: Twitter

Wick stated that Bitcoin is simply exploring the resistance zone round its new all-time excessive and he highlighted the opportunity of a drop into the $58,000 to $59,500 vary, just like the transfer that was seen within the early buying and selling hours on Nov. 15.

Wick stated,

“We’re merely testing the vary low of the resistance zone. If we break it on the shut might take a look at assist zone.”

Related observations have been made by market analyst and pseudonymous Twitter consumer ‘Rekt Capital,’ who posted the next tweet that zoomed out and appeared on the worth motion for BTC on the month-to-month chart.

As talked about by the analyst, the value motion on Nov. 16 was a retest of the month-to-month assist/resistance degree at $58,700. Now that BTC has efficiently rebounded close to the month-to-month $61,000 degree, a bullish case could be made within the weeks forward if the value manages to shut the month above the extent.

There’s nonetheless an opportunity that $54,000 will probably be hit

A level-headed view of the most recent worth motion was offered by market analyst and Cointelegraph contributor Michaël van de Poppe, who posted the next chart of a potential BTC worth trajectory over the following week.

BTC/USD 1-hour chart. Supply: Twitter

van de Poppe stated,

“To date, so good on Bitcoin. Bouncing from assist, however nonetheless needing to interrupt some essential areas right here, which did not occur but. Let’s go for that first. $63,000 is vital. No breakout there [leads to] additional downwards momentum.”

In keeping with the chart offered by van de Poppe, if the downward momentum continues, the value of BTC may drop to its subsequent assist degree at $54,000.

Associated: Bitcoin stages ‘picture-perfect rebound’ at $58.5K as crypto liquidations top $875M

Fractal patterns counsel an approaching worth rally

Crypto Twitter analyst ‘Allen Au’ posted the next side-by-side charts of Bitcoin from 2013, 2017 and 2021 in response to issues about $69,000 being the cycle peak.

BTC/USD 1-day charts from 2013, 2017 and 2021. Supply: Twitter

In keeping with the analyst, the most recent downturn isn’t the cycle high, however was actually the Wave 6 transfer seen in earlier cycles. Because of this “if its low is in, BTC may very well be onto Wave 7 quickly!”

Ought to the outlined wave sequence play out, then a Wave 5 peak may very well be $69,000, a Wave 6 low close to $58,600 with the potential to drop as little as $53,000 and a cycle peak someplace between $190,000 and $260,000 occurring someday in December 2021.

The general cryptocurrency market cap now stands at $2.651 trillion and Bitcoin’s dominance charge is 43.2%.

The views and opinions expressed listed here are solely these of the creator and don’t essentially mirror the views of Cointelegraph.com. Each funding and buying and selling transfer entails threat, it’s best to conduct your personal analysis when making a choice.