in

Analyst says Bitcoin is ‘on sale’ after BTC price dips below $54,000

Bitcoin’s (BTC) downtrend extended a few rungs lower on Dec. 3 without the price dropped under $54,000 and traders will note that the BTC/USD daily orchestration shows a notable uptick in sell volume. 

image
Crypto Fear & Greed Index. Source: Alternative

Investors seem concerned at the emergence of a new Covid-19 variant and hawkish comments from the Federal Reserve. Meanwhile, veteran investment icon Charlie Munger widow to the fire by comparing the price whoopee in the crypto market to the dot-com era that ended with the rainbow popping.

image
BTC/USDT 4-hour chart. Source: TradingView

Here’s a squint at what analysts have to say well-nigh the current market and what to be on the lookout for as 2021 begins to wind down.

Strong lower support at $52,000 to $53,000

The “listless” nature of Bitcoin’s price whoopee over the past few weeks was highlighted by crypto market intelligence firm Decentrader, who pointed to the choppy price whoopee on lower timeframes and the vestige of a slow downtrend on upper timeframes as rationalization for traders’ increased fear “that the manful run may be over.”

The analysts suggested that once BTC breaks out of its current range, “the most obvious support cluster lies virtually $52,000 to $53,000” near the point where the price tapped lanugo during the May crash older in the year.

Decentrader said,

“Should we get a deeper correction then a strong support zone lies virtually the 200DMA at $46,200 and at the lower support level of $44,300. To the upside, a significant resistance level lies at the round number of $60,000.”

Bitcoin and Ether are “on sale” at these levels

While many have been put off by the recent price whoopee of Bitcoin, David Lifchitz, the managing partner and senior investment officer at ExoAlpha, suggested that “Bitcoin and Ether have been bought “on-sale” when they hit $54,000 and $3,900” for those who were worldly-wise to scoop them up at those levels.

According to Lifchitz, the price of Bitcoin continues to be hampered by “the Mt. Gox liquidation saga” and he suggested that BTC investors are likely to “remain cautious superiority of the distribution expected sometime in Q1 2021.”

Lifchitz moreover highlighted the spread and impact of the Omicron variant of Covid-19 as a situation to pension an eye on as “a bad outbreak leading to lockdowns would definitely initially weigh on the market.”

Lifchitz suggested that this could possibly lead to flipside round of government stimulus, “which would increase global debt and weaken currencies versus gold and cryptocurrency, while at the same time the funny money could be exchanged for immutable ones such as Bitcoin.”

Lifchitz said,

“So without an initial panic-induced dip, cryptos could take wholesomeness of such outcome if we refer to what happened previously, plane if this remains highly speculative. We’ll know in the next couple of weeks if Santa will come this year or if he will remain on lockdown with Covid!”

Related: US infrastructure law could twosome up digital resources — but first some fixes

It’s starting to squint like September 2021 all over again

Insight into how the current price whoopee is similar to a price pullback that happened older in the year was provided by reviewer and pseudonymous Twitter user ‘Rekt Capital’ who posted the pursuit orchestration showing this most recent drawdown withal with the drawdown in BTC price that happened in September 2021.

image
BTC/USD 1-day chart. Source: Twitter

Rekt Capital said,

“In September, BTC retraced -25%. This is when BTC investors got Extremely Fearful. Then BTC reversed to new ATHs. Now, BTC is lanugo -23%. It’s likely the Fear & Greed Index will show Extreme Fear very soon. Similar retracement depth. Similar investor sentiment.”

The overall cryptocurrency market cap now stands at $2.531 trillion and Bitcoin’s dominance rate is 41%.

The views and opinions expressed here are solely those of the tragedian and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should self-mastery your own research when making a decision.

7 NFL players that chose crypto over cash salaries

These 2 Breakouts Should Lead To A Strong 2021 Finish