3 reasons why traders want to buy Bitcoin and the price drops to $58,500

Cryptocurrency traders scrambled to scratch their heads after a period of time Bitcoin fell sharply (Bitcoin) The price triggered a market-wide sell-off, and on November 16, almost all the tokens in the top 200 flashed red.

Data from Cointelegraph Markets Pro with Transaction view It shows that the price of Bitcoin has fallen to $58,609, and then a buyer is found to return the price to $60,500.

BTC/USDT 4-hour chart. Source: TradingView

Here are some of the views of traders and market analysts on the recent downtrend, and whether this is just a sign of shocks or dark clouds gathering.

BTC is exploring support and resistance levels

The option trader and pseudonymous Twitter user “John Wick” provided insights into the daily price movements of BTC. He Post The chart below highlights some important areas of support and resistance.

BTC/USD 1-day chart.Source: Twitter

Wick said that Bitcoin is only exploring the resistance zone near its new historical high. He emphasized the possibility of falling to the range of $58,000 to $59,500, similar to the trend in the early trading session on November 15.

Vic said,

“We are only testing the low range of the resistance zone. If we break it at the close, it may test the support zone.”

Market analysts and pseudonymous Twitter user “Rekt Capital” also made similar observations. Post The following tweet zooms out and looks at the price movement of BTC on the monthly chart.

As analysts said, the price action on November 16 was a retest of the monthly support/resistance level of $58,700. Now BTC has successfully rebounded to the level of 61,000 USD per month. If the price can be higher than this level at the close of the month, it can be bullish in the next few weeks.

It’s still possible to reach $54,000

Market analyst and Cointelegraph contributor Michaël van de Poppe provided a sober view of the latest price trends, and he released a chart of BTC price trends that may appear next week.

BTC/USD 1-hour chart.Source: Twitter

The pope said,

“Bitcoin has performed well so far. It has rebounded from support, but there are still some key areas that need to be broken here, which has not happened yet. Let’s do it first. $63,000 is important. There is no breakthrough there. [leads to] Further downward momentum. “

According to the chart provided by van de Poppe, if the downward momentum continues, the price of BTC may fall to the next support level of $54,000.

related: As crypto liquidation reached US$875 million, Bitcoin “perfectly rebounded” with US$58,500

Fractal patterns indicate that prices are about to rise

Crypto Twitter analyst “Allen Au” Post Below is a side-by-side chart of Bitcoin in 2013, 2017, and 2021 in response to concerns that $69,000 is a cyclical peak.

1-day chart of BTC/USD in 2013, 2017 and 2021. Source: Twitter

The analyst said that the recent downturn is not the top of the cycle, but the sixth wave of movement in the previous cycle. This means “If it is at a low point, BTC may soon enter the 7th wave!”

If the outlined wave sequence occurs, the peak of wave 5 may be $69,000, the low of wave 6 may be close to $58,600, and it may fall to a low of $53,000, and the cycle peak may be in December 2021 At some point between 190,000 USD and 260,000 USD.

The overall market value of cryptocurrencies is now $2.651 trillion, and Bitcoin’s dominance rate is 43.2%.

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risk, and you should conduct your own research when making a decision.