Bitcoin price dropped to a low on November 18, and a brief visit to $56,000 led to a dramatic sell-off in Ether and altcoins. At the time of writing, BTC is changing hands at $57,245.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price drop to $57,000 is an attractive entry for hodlers
The $60,000 support was broken early in the US session, allowing the bears to take control of the market in the short term.
According to Delphi Digital, the initial sell-off was largely driven by a wave of liquidations rather than a fundamental shift in narrative, which suggests that there is a possibility that this pullback will be short-lived and potentially presents an attractive entry point for traders looking to gain more market exposure.
While there has been a significant average drop seen in the markets over the past week, it has not helped prevent an overall increase in total liquidity across major exchanges that coincides with each sizable price drop. As for what comes next for BTC, Delphi Digital sees the possibility of a dip to $55,000 if continued selling pressure forces BTC below $57,750, but the analysts also suggested that any drawdown will be relatively short-lived.
“If BTC takes another leg lower, it could set up an even more attractive entry for those with long-term conviction looking to accumulate,” Delphi Digital stated.
Even experienced traders are concerned about the price action on November 18. The dip in price seriously challenges the lower bound of the current support zone, as probabilities are starting to stack against its holding, an issue for short-term traders. That long-term holder shouldn’t be too concerned by this type of price action.
While some market traders consider this an ominous event, the move is a positive development because it is one of the things in the market still with a bullish market structure.
The total crypto market capitalization currently stands at $2.535 trillion, and Bitcoin dominance is 42.6%.
Read more:
- Bitcoin Price Declined Toward A Three-Week Low Around $56,000 Before Stabilizing Near $58,000
- No Need To Fret About Bitcoin Price Drop Below $60,000, But Be Careful If It Drop Below $50,000