As the price of Bitcoin fell below $56,000, analysts identified bull market and bear market scenarios

A cool head calls for the collective to take a deep breath and take a step back to see the long-term prospects of Bitcoin’s future (Bitcoin) Prices and the broader crypto market, but today’s fall below $56,000 has caught the attention of traders.

Data from Cointelegraph Markets Pro with Transaction view It shows that after the beginning of this week, it was close to 60,000 US dollars, a few days of shorts hit the bitcoin price and caused it to return to 55,600 US dollars.

BTC/USDT 1-day chart. Source: TradingView

The following are analysts’ views on the latest price movements of Bitcoin and the things to be aware of in the coming days.

Pay attention to the month end

Independent market analyst “Rekt Capital” discussed a careful study of Bitcoin’s monthly price movements. He Post The chart below shows that BTC is about to regain an important monthly closing level near US$58,728.

BTC/USD 1-month chart.Source: Twitter

According to Rekt Captial, the price trend of BTC has been “promising” so far and is now “very close to restoring this monthly level as support (green)”, but analysts warned that there may still be a lot of volatility in the near future. The market ends in November.

Rekt Capital said,

“But it is important to note that for the rest of the month, BTC can still be easily seen like this. The monthly closing is the most important thing.”

Mt. Gox trustee will distribute 145,000 BTC

David Lifchitz, Managing Partner and Chief Investment Officer of ExoAlpha, provided insights into the possible reasons behind the pullback. He pointed out that November 16 Announcing the trustee of Mt. Gox This will distribute approximately 145,000 Bitcoins to retail investors who purchased on exchanges between 2013 and 2015.

Lifchitz emphasized some concerns. Many of these “moms and popular investors” “will receive windfalls in the near future” because BTC is 100 times higher than its original purchase price, and “may be cashed at any price, when effective When news of the distribution comes out, it may cause a considerable blow to the market.”

For the time being, Lifchitz believes that “the sell-off seems to end at the support level of $57,000 to $58,000” and it looks “prepared to hit $63,000 and above again in the next few days.”

But according to Lifchitz, we need to be cautious in the future, because once Mt. Gox BTC is released, it will face the threat of selling in the future.

Livchitz said,

“However, Mt.Gox is a Damocles sword on top of the market. I don’t think BTC will reach $100,000 next month with this threat pending. The whale has been holding on tightly, but has not bought More. I guess they are well aware of the upcoming dramas of Mt.Gox and are waiting for the potential upcoming sharp drop. Now, once the obstacles of Mt.Gox are cleared, Bitcoin will have a clear path to new highs. Unless some crazy rules that might break the party.”

related: Metaverse and blockchain game altcoins rise, while Bitcoin seeks support

Historical analysis suggests that Bitcoin price may have bottomed

Analyst and pseudonym Twitter user “TechDev” provided one last insight Post The following chart compares the price movement of Bitcoin in 2017 with the current market.

The price trend of BTC in 2017 and the price trend of BTC in 2021.Source: Twitter

According to TechDev, the current correction is “close to perfect after mid-November 2017”, and the “only nuance” is “breaking through the 50-day simple moving average (SMA)”.

Technology development Said,

“We may not have bottomed out yet, but we are close. Everything I have seen indicates that huge changes are likely to occur in the next 5 to 15 weeks (including BTC and Alt mania).”

The overall cryptocurrency market value is now 2.51 trillion U.S. dollars, and Bitcoin’s dominance rate is 41.9%.

The views and opinions expressed here only represent the views of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading action involves risks, and you should conduct your own research when making a decision.