The price of Bitcoin has been sold many times and has fallen many times since hitting a record high of $69,000 earlier this month.
According to CoinDesk, the world’s most popular digital currency peaked on November 10 and approached $62,000 two days later.
After that, the Bitcoin correction started to rebound, reaching $66,300 on November 15th. An additional CoinDesk number will be displayed.
After that spike, digital assets fell again, falling below $56,000 on November 18 and above $60,000 on November 21.
Since then, the price of Bitcoin has repeatedly approached $55,000, hitting its lowest level in six weeks yesterday.
[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.]
After this persistent decline, some market pundits have weighed in on important support levels that technical traders may be interested in.
“BTC’s short-term investment base has historically acted as a group that supports the market to the upside,” said Alice Killeen, founder and managing partner of venture capital firm Stillmark.
“Blockware Market Intelligence reports that the VWAP (price weighted average) chain indicator is currently around $53,000,” he said recently.
“Also around $53,000 is the price of BTC with a Bitcoin market cap of $1 trillion, which is psychologically important for investors and traders alike,” Killeen added.
Pankaj Balani, co-founder and CEO of DeltaExchange, responded to these allegations.
“Yes. I agree with this assessment. 1Tn MCAP as a strong supporter was also highlighted in the previous note,” he said.
“We assume that the market will remain confined in the short term. BTC failed above 60K several times and it took several attempts to get past that level. At the same time even with a market cap of 1TN. A 53-54K acts as a strong support,” predicts Balani.
Jake Vujastic, Senior Market Analyst at TrendSpider, takes a slightly different view.
“Whenever the dollar cost averaging method is tested, there may be a range of price increases simply because the average participant returns to break even and drains the market. I agree,” he said.
However, Wujastyk is skeptical that a $1 trillion market cap will provide important support.
“I don’t think Bitcoin’s market cap has any psychological consequences for investors or traders because price levels are usually viewed as psychologically important levels for market participants, not market caps. F.”
Petr Kozyakov, co-founder and CEO of global payments network Mercurio, also spoke on the matter.
“Despite the constant sell-off in Bitcoin price, the best digital currency is not trading below a 30-day low of $55,632, with Bitcoin price being supported around $53,000. This justifies VWAP metrics. “He says.
“So far buyers have managed to ease selling pressure in the market, which mainly shows how mature the market was last year.
In addition, Kozyakov provides an upward perspective.
“Short-term holding should be seen as critical to maintaining a healthy market, and while Premier Coin is above the psychological mark of $53,000, the imminent surge in ATH to $68,789 is a matter of time.”