Analysts Says Bitcoin Still Trading in Bullish Channel Despite Recent Price Collapse

Bitcoin’s broader outlook stays constructive regardless of the latest pulldown. The cryptocurrency fell beneath the guide level of $57,653, the Oct. 23 low, which has opened the doorways for a deeper pullback.

Mumbai-based crypto asset management company, MintingM, stated that the cryptocurrency is nevertheless in a clear uptrend, making higher highs and higher lows on the every day time frame. As seen in the chart below, the upward or bullish channel, representing higher highs and higher lows, can be identified by trend lines connecting the lows of July 20 and Sept. 29, and the highs of June 30 and Sept. 7.

image 2021 11 23T12 32 09 291Z

Bitcoin used to be buying and selling close to $56,000 at press time, having hit a file high of $68,954 formerly this month.

Stack Funds’ COO and co-founder Matthew Dibb stated the recent decline represents a regular bull market correction and may be prolonged further. “There is a mounting challenge that inflationary pressures will motivate a drop in threat assets, inclusive of bitcoin. We consider it will occur at some point, however it is no longer precisely imminent,” Dibb said.

Action in ordinary markets shows possible for a deeper drawdown. The reappointment of Jerome Powell as Chairman of the Federal Reserve, by means of U.S. President Joe Biden on Monday, strengthened bets that the central financial institution would hike quotes quicker to control inflation. U.S. shares erased early gains, whilst gold and silver fell after Powell’s reappointment.

The greenback index hit a 16-month high of 96.60 early Tuesday and the U.S. two-year yields rose to 0.63%, the best possible in view on March 20.

Bitcoin flipped from assist at $57,653 into resistance, with a firm shut under the stated degree on Monday. And the breakdown is backed with the aid of a below-50 or bearish studying on the relative energy index (RSI). So, some other leg lower cannot be ruled out.

MintingM said the immediate assistance is considered at $53,000, while Stack Funds’ Neo stated $50,000 and $51,000 as key aid zones.

Bitcoin flipped from support at $57,653 into resistance, with an association shut under the said stage on Monday. And the breakdown is backed by a below-50 or bearish reading on the relative power index (RSI). So, any other leg lower cannot be ruled out.

MintingM started the instantaneous aid at $53,000, while Stack Funds’ Neo referred to $50,000 and $51,000 as key aid zones.

image 2021 11 23T12 33 45 075Z

 

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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