Bitcoin prices have plummeted along with stock markets globally on Friday, which tumbled on fears over a new Covid-19 strain. As discount shopping event Black Friday takes off, BTC price dropped for the first time to levels seen in mid-October, falling 7% in the last 24 hours. Several technical variables identified as the bearish bias holds sway under $60k. The price of BTC dropped further on technical correction from all-time highs of $69,000, end-of-year profit-taking, and speculation led to increased selling pressure. At the time of this analysis, short-term indicators on BTC/USD charts confirm that bearish forces have gained the upper hand reaching intraday lows of $53,533. However, the majority think that the strong support around the $53,000 mark is to buy the dip for the current leg down. Bitcoin’s drop as inflation & COVID fears linger indicates that it has yet to gain full traction as a haven asset. Investors weighed Bitcoin’s haven appeal hoping that markets stabilize. Meanwhile, economic uncertainties, supply chain problems, higher inflation is a plus for Bitcoin, and it acts as a store of value asset.
Key Levels
Resistance Levels: $67,000, $63,000, $60,000
Support Levels: $53,000, $50,000, $47,000
BTC/USD Daily ChartThe no. 1 crypto Bitcoin has continued to fall, with significant losses recorded on Friday. The BTC/USD pair is currently trading at $54,215, down 7% on the day. It’s not looking good for the lead crypto, as bears generate a powerful negative signal surging through supports at $54,000. A drop below here on the daily chart indicates further downward pressure.
As near-term selling activity prevailed, bulls failed to stay above the prior support at $55,000, previously a congested zone. The sell-off aims for the demand zone between $53,000 and $51,300 as a psychological level. Its breach could result in a long-term slide to $50,000. The $55,000 zone is now a significant resistance level to watch out for.
BTC/USD 4-Hour ChartAs the BTC/USD approaches a six-week low, the price continues under pressure. After Nov. 8 breakout over $67,000, price action lingers below the all-time high at $69,000, which is also a resistance. The ongoing correction will test how serious buyers are about keeping the rebound relevant. An upswing is maintained if the price returns above $57,000.
In the bearish market, the oversold Relative Strenght Index is seen on the lower time frame attracting bargain hunters. However, before the bulls can expect a bounce to gain traction, they’ll have to retake $57,000 and the moving average (MA 50) on the 4-hour chart. A bearish breakout would dampen the mood and push losses closer to $50,000.
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