Traders say Bitcoin’s drop to $57K is an ‘attractive entry’ for hodlers
A new analysis has revealed that Bitcoin’s price decline of 9% in the past week, from $64K to $57K, was an ‘attractive entry point for hodlers.’ The decline is attributed to uncertainty over whether or not Bitcoin will be accepted on the Coinbase Pro platform and also China putting a stop on cryptocurrency trading.
Bitcoin’s price has dropped to $57,000. This is an attractive entry point for hodlers according to traders.
The price of bitcoin fell to new lows today, and a short visit below the $56,000 mark triggered a rapid sell-off in Ether and other altcoins.
Support at $60,000 was hit early in the U.S. trading day, according to data from Cointelegraph Markets Pro and TradingView, allowing bears to momentarily gain control of the market.
4-hour chart of BTC/USDT. TradingView is the source of this information.
Here’s what experts are saying about today’s market movement and if traders should be worried about further losses.
Large-scale reductions “will only last a short time”
According to a recent report from cryptocurrency research firm Delphi Digital, “the initial sell-off was largely driven by a wave of liquidations rather than a fundamental shift in narrative,” implying that this pullback could be short-lived and potentially “present an attractive entry point” for traders seeking more market exposure.
BTC/USD technical forecast in the immediate term. Delphi Digital is the source of this information.
While there has been a lot of deleveraging in the market over the last week, it didn’t stop the general surge in “aggregate liquidations across key exchanges corresponding with each large price fall,” according to Delphi Digital.
In terms of what’s next for BTC, Delphi Digital predicts a drop below $55,000 “if prolonged selling pressure drags BTC below $57,750,” but any “drawdown will be rather short-lived,” according to the experts.
According to Delphi Digital,
“If BTC continues to fall, it might provide an even more appealing entry point for long-term investors eager to accumulate.”
Similar comments were stated by the corporation in relation to the price of Ether (ETH), which temporarily dipped below $4,000 earlier today. Ether is aiming to convert a long-term resistance level formed in May into support, according to Delphi Digital, and if it succeeds, Ether will “appear prepared for trend continuation to the upside.”
Ether’s major support and resistance levels. Delphi Digital is the source of this information.
According to Delphi Digital,
“If price support loses way, bulls may hope for a retest and rebound off the upper trend line built from the May 2021 top to the September 2021 high.”
Long-term owners may relax.
Options trader and pseudonymous Twitter analyst ‘John Wick’ added more insight on the Bitcoin price, tweeting that even experienced traders are frightened by today’s market behavior.
We’re putting in a lot of effort to keep the support zone I’ve set up up. I’m not delighted to see that red bar, NGL.
It doesn’t imply we’ve failed the support completely, but it does indicate that the odds are stacked against it holding.
If you’re planning on staying for a long time, this shouldn’t be an issue. twitter.com/D4EvI8RcnD
As “probabilities are beginning to accumulate against it holding,” the price decline significantly tested the lower limit of the present support zone, which Wick pointed out is really just a worry for short-term traders, but long-term investors shouldn’t be too worried by this sort of price action.
Bitcoin has dropped to a one-month low following a 6% decrease, bringing the price to $56.6K.
Ether’s market structure is still optimistic.
In the case of Ether, market analyst and pseudonymous Twitter user ‘Pentoshi’ uploaded the chart below, indicating the break below the previous ascending channel and retest of the support and resistance levels seen at the cryptocurrency’s prior all-time highs.
One-day chart of ETH/USD. Twitter is the source of this information.
While some market participants have seen this as a negative development, Pentoshi views it as a good development since it “is one of the few items in the market that still has a bullish market structure.”
Pentoshi, on the other hand, sounded a note of caution when he remarked,
“On a closing basis, you don’t want to see it fall back under those ATH’s.”
The total cryptocurrency market capitalization is currently $2.508 trillion, with Bitcoin commanding 43.4 percent of the market.
The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
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