Bitcoin has recently plunged below $57k, recording as low as $55k in the process. The largest digital currency by market capitalization is therefore under immediate bearish pressure that threatens the current bullish setup. Altcoins also followed BTC and posted new lows of their own. However, even with the choke put on by the bears on the current proceedings, some analysts believe that below $57k is a good opportunity for long-term investors aka HODLers.
How will it Hold in the Short-term?
According to one such analyst Delphi Capital, any moves below are likely to be short-lived and therefore, they present an excellent opportunity for investors and long-term HODLers to pick the BTC up for relatively cheap. The same analysis was presented for Ethereum as well.
The analyst said:
“The initial sell-off was largely driven by a wave of liquidations rather than a fundamental shift in narrative,”
According to a widely populated pseudonym trader named John Wick on Twitter, the price action below $60k is concerning for many traders. Many aren’t sure what to make of it right now. He tweeted:
We are really trying hard to hold that support zone I’ve had up. NGL I’m not too happy to see that red bar
Does not mean we fail the support 100%, but it is telling us the probabilities are starting to stack against it holding
If you’re long term this shouldnt bother you pic.twitter.com/D4EvI8RcnD
— John Wick (@ZeroHedge_) November 18, 2021
This means that not all traders agree that the short-term setup isn’t going to necessarily of a recovery and that the price drop has caused concerns within the sector. However, even this trader believes that if you are in for the long-term, it shouldn’t bother you. However, most traders aren’t big HODLers and most of them normally liquidate their holdings near the end of the bull run. However, this time around, even short-term HODLers who purchased the crypto around the $20k mark are resisting to sell at or around the latest all time high of $69k. They believe the index can reach much higher levels and they are ready to wait till that happens.
However, the future is as uncertain as always. The recent price tank has dampened the bullish mood a bit and some traders are genuinely worried about it. They believe that many users will look to offload their crypto if a certain price support is breached and that is plausible. However, many of the buyers who bought at around $20k haven’t liquidated any just yet despite a rise to $64k in April earlier this year and a subsequent drop to $28k at one point. So, they will likely stand resolute, at least for now.
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