Bitcoin's correction to one-month lows may alarm, but it's 'no big deal'
By Noemi Jansana / Alejandra Zamora
Date: Friday 19 Nov 2021
(Sharecast News) - Bitcoin declined for six consecutive days on Friday - its longest losing streak since May - when it fell to nearly $56,000 for the first time since October, and lost about 6%. Experts warn that the bears seem eager to extend the correction of the world's largest cryptocurrency from its all-time highs at $69,000 on 10 November. Ethereum and other 'altcoins' have not been spared the sell-off, with the second-largest cryptoasset by market capitalization seeing its pullback extend below $4,000 on Thursday, while in other tokens the decline has been up to 15%.
Total market capitalization lost $2,5 billion level , and "odds are stacking in favor of the further move to the downside," commented Naeem Aslam, head of analytics at Avatrade. "In terms of Bitcoin's price action, that upward momentum is springing back to life. The fear is that we may see an intense sell-off after losing the $58,000 level," the expert added.
However, for Ethereum, things are a bit different, in the analyst's opinion, as "its price action is stronger in comparison to Bitcoin, and the Ethereum wallet activity is really strong as well. This suggests that Ethereum is likely to lead the rally."
The loss of $58,000, the first support of relevance, opens the door to an "acceleration to the downside" of Satoshi Nakamoto's creation, noted Craig Erlam, an analyst at Oanda. At this point, "focus may shift back towards the $50,000 region." "While this would represent a large correction from the highs, it would still be relatively minor considering how far it's come in recent months," Erlam further explains.
According to Bolsamanía analyst, José María Rodríguez, we are only dealing with "noise". "It is the umpteenth fall within an underlying uptrend," he stated a few days ago. This is a normal reaction to a cocktail of negative news and concerns about regulatory pressure from the US and China, which has served as an excuse to drain the latest excesses after a seven-week rally from $40,000 to $69,000 on 10 November, as well as clear the market of speculators.
"What the price is drawing us, is sideways, over the last month, with support at $58,000 and resistance at $69,000, in round numbers," the analyst continued. "And if it were to lose the base of this sideways pattern, the next support levels are at the September highs ($53,125) and the base of what appears to be a short-term bullish channel, now at around $52,000. And with all that, nothing would have happened here, absolutely nothing," Rodriguez concluded.
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