Bitcoin Prices Have Been Struggling To Recover After Falling Below $60,000
Bitcoin has been trading south of $60,000 for the last several hours, after dropping to almost $58,000 this morning.
The digital currency, which is the world’s most valuable in terms of market capitalization, declined to $58,151.72 around 4 a.m. EST, Fintech Zoom figures show.
It quickly mounted a modest recovery, coming close to $59,000 within an hour, additional Fintech Zoom data reveals.
Since then, bitcoin has been stuck moving in a range between $58,000 and $60,000.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
As for the decline that bitcoin prices suffered recently, one market observer described it as being perfectly normal.
“Bitcoin has had a huge run-up during October to all time highs and has now pulled back in what appears to be a healthy bullish correction,” said Jon Pearlstone, publisher of the newsletter CryptoPatterns.
He emphasized that “since Bitcoin spent so little time at the $65,000 level, prices between $52,500 and $62,000 should be considered a bullish consolidation of rangebound trading.”
Since the cryptocurrency fell below $60,000, “buyers have been doing all they can to push the price back up,” said Petr Kozyakov, co-founder and CEO of the global payment network Mercuryo.
“However, there seems to be a thick resistance wall around the $60,000 level, a trend that implies the digital currency is dealing with more sell orders at that price level,” he noted.
John Iadeluca, founder & CEO of multi-strategy fund Banz Capital, also spoke to the resistance the cryptocurrency is facing.
“Right now Bitcoin‘s working through a large number of sell orders around the $59,000 level,” he stated.
At the same time, the hedge fund manager emphasized that the digital asset is “seeing increasing support” below that price point.
William Noble, the chief technical analyst of research platform Token Metrics, also weighed in, identifying key support.
“From a technical analysis point of view, BTC has support at 58k and there is talk of support and possibly big buy orders at 54k.”
Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, provided similar analysis.
“Currently Bitcoin is sitting on a key support level of $58,000 and as long as it maintains the $50,000 level traders can continue expecting bullish resumption,” he stated.
However, should the digital currency fall out of its range and then drop below support at $52,500, it would put “a retest of the key $42500 support level back in play,” noted Pearlstone.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.