Bitcoin price has fallen sharply today, hit its lowest point in almost two months, and dropped below $53,000 repeatedly. This is the level defined as providing critical support.
According to CoinDesk, the world’s most valuable digital currency with a market value of just $51,808.54 this afternoon.
It is currently at its lowest level since October 6. Additional CoinDesk numbers will be revealed.
After that fall, the cryptocurrency surged above $54,000 but remains below $53,000 tonight.
At the time of writing, the digital asset is trading at nearly $53,000.
[Editor’s note: Investments in cryptocurrencies or tokens are highly speculative and the market is largely unregulated. Anyone considering this should be prepared to lose their entire investment.]
Several analysts speak of this particular level and emphasize its importance.
Katie Stockton, Founder and Managing Partner of Fairlead Strategies, LLC says:
“Today’s weakness may be due to the negative momentum behind the high-growth stocks that appears to have influenced Bitcoin sentiment in Q2.
William Noble, senior technical analyst at research platform TokenMetrics, also adds a near-term perspective to this level.
“53k was the highest value in September,” he said.
“So the ceiling in front of it can be used as a floor in the near future. “53k will likely serve as part of the support over the weekend,” Noble added.
“If stocks reopen on Monday, Bitcoin selling could resume,” he said.
“If stock prices fall, all risk assets, including cryptocurrencies, could fall even more.
Brett Sifling, investment advisor at Gerber Kawasaki Wealth & Investment Management, is also involved.
“Other analysts’ estimates are correct. We expect Bitcoin to stay in the $50,000 to $53,000 range,” he said.
“People are psychologically attracted to placing orders to buy and sell fractions like $50,000. The same level was the previous resistance, but is now being tested as a new support,” Sifling said.
“If you can’t hold between $50,000 and $53,000, you’ll still see support between $45,000 and $40,000,” he said.
Kiana Daniel, CEO of InvestDiva, also commented on what could happen if Bitcoin worked on top of existing support.
“BTC/USD is forming a double down chart from the daily chart model,” he said.
“Friday’s decline was a test both below the 38% Fibonacci correction level and below the lower cloud band of the daily vision, both of which are important psychological values,” said Daniel.
“The cloud of the future looks like a bear. Evidence of a break below this level (around $53,000) could suggest even lower momentum. “That could bring the price of Bitcoin down to around $49,000 and $44,000, respectively, to 50% and 61% Fibonacci correction levels,” he said.
“Note that this kind of volatility is normal for cryptocurrencies like Bitcoin,” Daniel said before presenting the reverse perspective.
“Once the download is complete, Bitcoin will recover and will most likely hit new highs in the new year.
Ledger Prime’s chief investment officer Shilliang Tang also took the lead, saying the recent drawdown is a net plus for Bitcoin’s future price behavior.
“The decline certainly follows the decline in stock prices that we have seen due to Covid-19 fears and concerns about inflation,” he said.
“But cryptocurrencies and stock markets tend to fluctuate at the same time, but they are different markets, especially cryptocurrencies in a strong upward trend.”
“Also, the Bitcoin metric in the chain (King Crypto, tracked by Brulan) is still strong. “More coins are being pulled out of the wallet than into the wallet,” said Tang.
“This means that once this outbreak is over, there will definitely be a supply shock that will drive up Bitcoin prices,” he predicted.
Last but not least, this decline is more of an eraser of the cowboy influence from dealers and creates healthier conditions for further price hikes in the near term.