Bitcoin prices have fallen to nearly 2 months low: what should traders expect next?

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Bitcoin prices have fallen below $ 53,000 several times today.

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Bitcoin prices have seen significant declines today, dropping to their lowest level in nearly two months and repeatedly falling below $ 53,000, a level that has been identified as providing key support.

The world’s most valuable digital currency by market value hit as low as $ 51,808.54 this afternoon, according to data from CoinDesk.

At this point, it was trading at its lowest level since October 6, additional figures from CoinDesk reveal.

Following this decline, the cryptocurrency rebounded, rising above $ 54,000, before falling continuously below $ 53,000 tonight.

At the time of this writing, the digital asset was trading at almost $ 53,000.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Several analysts have spoken at this particular level, stressing its importance.

“The support of almost $ 53,000 is also important to us, but so far it is still intact,” said Katie Stockton, Founder and Managing Partner of Fairlead Strategies, LLC.

“Today’s weakness may have been triggered by negative momentum in high growth stocks, which appeared to affect sentiment about bitcoin in the second quarter.”

William Noble, chief technical analyst at the Token Metrics research platform, also weighed in on this level, in addition to offering some near-term prospects.

“53k was the previous September high,” he said.

“So this old ceiling could serve as a short-term floor. 53k will likely serve as backing for part of the weekend, ”Noble added.

“Once stocks reopened on Monday, bitcoin sales could resume,” he said.

“If stocks fall, all risky assets, including crypto, could have another head start.”

Brett Sifling, investment advisor for Gerber Kawasaki Wealth & Investment Management, also intervened.

“The other analyst’s assessment seems correct, we would expect Bitcoin to have support around $ 50,000 to $ 53,000,” he said.

“People are psychologically drawn to placing buy / sell orders in round numbers like $ 50,000. This same level was an earlier point of resistance, which is now being tested as new support, ”Sifling noted.

“We are also seeing support at the $ 45,000 and $ 40,000 levels if we fail to hold $ 50,000 to $ 53,000,” he said.

Kiana Danial, CEO of Invest Diva, also commented on what could happen if bitcoin manages to find its way through existing support.

“BTC / USD formed a double top bearish reversal chart pattern on the daily chart pattern,” she said.

“Friday’s drop was a test below the 38% Fibonacci retracement level and the lower band of the daily Ichimoku cloud; both being key psychological levels, ”said Daniel.

“The future Ichimoku cloud appears bearish. Confirmation of a breakout below this level (at around $ 53K) could indicate further bearish momentum [that] could lower the price of Bitcoin towards the 50% and 61% Fibonacci retracement levels at around $ 49,000 and $ 44,000 respectively, ”she said.

“Keep in mind that such volatilities are normal for cryptocurrencies like Bitcoin,” Danial said, before offering a bullish outlook.

“Once the withdrawal is complete, there is a strong possibility that Bitcoin will rebound and reach new highs in the New Year.”

Shiliang Tang, chief investment officer of cryptocurrency investment manager LedgerPrime, also offered a bullish stance, saying the latest pullback was a net positive for future bitcoin price movements.

“This decline has certainly followed the drop in stock prices that we have seen due to Covid fears and concerns about inflation,” he said.

“However, while the crypto and equity markets tend to move in tandem, they are different markets and crypto in particular is in a strong bull cycle.”

Additionally, the on-chain metrics for Bitcoin – the king crypto to follow in a bullish race – are still strong: there are more coins that are taken out of the trade than they are flowing, ”Tang said.

“This means that once this flush is over, we should see a supply shock in which the price of Bitcoin explodes upward,” he predicted.

“On the contrary, this decline has done more to eliminate these leveraged cowboy traders and in turn set up healthier conditions for continued price hikes in the near future.”

Disclosure: I own bitcoin, bitcoin cash, litecoin, ether, EOS, and soil.

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