Bitcoin makes the headlines by dipping below $58,000 on Feb. 6 after a recent upswing in volatility that pushed it up towards $70,000 last week. As many have pointed out before, BTC is not immune to market fluctuations and has been known for its wild price swings in the past- sometimes dropping as low as single digits.
The “bitcoin lowest price 2021” is a statement made by an analyst who says that Bitcoin is on sale. The currency has dipped below $54,000 which the analyst believes to be the lowest point it will go before going back up again.
The slump in Bitcoin (BTC) continued on Dec. 3 when the price fell below $54,000, and traders will see a significant increase in sale volume on the BTC/USD daily chart.
Fear and Greed Index for Cryptocurrencies. Alternative Source
Investors are anxious by the introduction of a new COVID-19 variation and the Federal Reserve’s hawkish views. Meanwhile, renowned investor Charlie Munger fueled the flames by comparing the price behavior in the crypto market to the dot-com period, which culminated with the bursting of the bubble.
4-hour chart of BTC/USDT. TradingView is the source of this information.
Here’s what experts have to say about the present market and what to keep an eye out for as 2021 draws to a close.
At $52,000 to $53,000, there is strong lower support.
Decentrader, a crypto market intelligence business, emphasized the “listless” nature of Bitcoin’s price activity in recent weeks, citing tumultuous price action on lower timeframes and signs of a steady fall on higher timeframes as reasons for traders’ heightened anxiety “that the bull run may be finished.”
Once BTC breaks out of its current range, “the most evident support cluster sits around $52,000 to $53,000,” according to the experts, which is close to where the price broke down during the May drop earlier this year.
According to Decentrader,
“Should we see a further decline, a solid support region may be seen around the 200DMA at $46,200, as well as around the lower support level of $44,300.” A big resistance barrier on the upside is the round figure of $60,000.”
At these prices, Bitcoin and Ether are “on sale.”
While the recent price movement of Bitcoin has turned many people off, David Lifchitz, managing partner and chief investment officer of ExoAlpha, believes that “Bitcoin and Ether were acquired “on-sale” when they reached $54,000 and $3,900″ for individuals who were able to get them at those prices.
According to Lifchitz, “the Mt. Gox liquidation issue” continues to stymie Bitcoin’s price, and BTC investors are likely to “remain cautious ahead of the payout scheduled somewhere in Q1 2021.”
The propagation and effect of the Omicron strain of COVID-19 is also something to keep a watch on, according to Lifchitz, since “a big epidemic resulting to lockdowns would undoubtedly initially weigh on the market.”
This, according to Lifchitz, may lead to another wave of government stimulus, “increasing global debt and weakening currencies against gold and cryptocurrencies, while the funny money might be traded for immutable ones like Bitcoin.”
According to Lifchitz,
“So, if we refer to what occurred earlier, cryptos might take advantage of such a result after an initial panic-induced slump, even if this remains very speculative.” We’ll find out in the next weeks if Santa will visit this year or whether he’ll stay on lockdown with COVID!”
Related: A new US infrastructure legislation might help protect digital assets, but there are certain issues to address first.
It’s beginning to look a lot like September 2021.
Analyst and pseudonymous Twitter user ‘Rekt Capital’ gave insight into how the current price movement is comparable to a price retreat that occurred earlier this year, posting the following graphic illustrating this most recent downturn with the fall in BTC price that occurred in September 2021.
1 day chart of BTC/USD. Twitter is the source of this information.
According to Rekt Capital,
“BTC retraced -25 percent in September. This is when Bitcoin investors were really concerned. BTC then switched to new ATHs. BTC is now down -23%. Extreme Fear is extremely likely to appear on the Fear & Greed Index very soon. Retracement depth is similar. Investor mood is similar.”
The total cryptocurrency market capitalization is currently $2.531 trillion, with Bitcoin commanding 41% of the market.
The author’s thoughts and opinions are completely his or her own and do not necessarily represent those of Cointelegraph.com. Every investing and trading choice has risk, so do your homework before making a decision.
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Bitcoin has been on a roller coaster ride this year. The cryptocurrency was trading at $20,000 in January and had reached an all-time high of $19,783.33 on December 17th.
However, the price had dipped below $54,000 by February 7th and is currently sitting at around $6,400. This means that analysts are saying that Bitcoin is “on sale” after the dip below $54,000. Reference: bitcoin price news.
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