Another Bitcoin price drop? BTC could fall back before ‘slowdown’, analyst warns

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Bitcoin (BTC) rebounded to nearly $ 50,000 on December 5 as traders continued to take stock of recent events.

1 hour BTC / USD candle chart (Bitstamp). Source: TradingView

Data from Cointelegraph Markets Pro and TradingView followed a less volatile BTC / USD, reaching $ 49,777 on Bitstamp before consolidating.

After crashing to $ 41,900 early Saturday, the pair stabilized as the market digested what was the last giant deleveraging event to hit Bitcoin this year.

TLDR of what happened last night:

Open interest built up over weeks + a positive funding regime and low weekend liquidity (i.e. thin order books) gave a perfect storm for a long run-off stunt.

These forced sales executed in thin books, therefore the withdrawal.

– Will Clemente (@WClementeIII) December 4, 2021

For some, however, there was every reason to remain cautious and not expect another wave of long-term lows.

“We’re diving once more. CT loses its shit and sells more. But it’s miraculously bought out,” Lex Moskovski, CIO of Moskovsky Capital, predicted in part of the comments on Bitcoin’s outlook.

“Consolidation, a slow crushing. “

There is now no shortage of significant support levels to recover from that slowness: $ 50,000 and the $ 1,000 billion market cap area of ​​just above $ 53,000, as well as various all-time highs.

Trader and analyst Rekt Capital meanwhile envisioned the 200-day Exponential Moving Average (EMA), a support line that had been holding since August but was broken during Saturday’s decline, as a potential line in the sand. .

#BTC is just below the 200 day EMA right now $ BTC #Crypto #Bitcoin https://t.co/ZOVwYBjatH pic.twitter.com/vOlJVSEM6p

– Rekt Capital (@rektcapital) December 5, 2021

In late September, when BTC / USD last traded at the $ 42,000 level, also saw a test of the 200EMA, and Rekt Capital noted that the severity of the decline was still pale compared to previous ones. the story.

“You survived the -84.5% BTC bearish crash. You survived the -63% BTC crash in March 2020. You survived the -53% BTC crash in May 2021. You will also survive this crash, “he added.

Enough of flushing?

A review of the status quo in derivatives markets showed neutral or slightly negative funding rates at the time of writing, a marked difference from just a few days ago.

Related: Ethereum Acts As A ‘Hedge’ In Bitcoin Price Crash As ETH / BTC Hits High In 3 Years

A significant portion of open interest on futures contracts was wiped out during deleveraging, and more than $ 2.5 billion in crypto accounts were liquidated.

The question for commentators now was whether enough moss had been removed to ensure a return to steady growth.

Is the open interest sufficiently emptied? pic.twitter.com/jnvrqRPDot

– Nunya Bizniz (@Pladizow) December 4, 2021

The weekly close appeared to be Bitcoin’s lowest since early October.

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