Market Analysis

Traders say Bitcoin’s drop to $57K is an ‘attractive entry’ for hodlers

Bitcoin’s price fell below the $57,000 level on Nov. 18, sparking a widespread sell-off in ETH and altcoins. But traders say the current range presents an “attractive entry” for hodlers.

The price of Bitcoin (BTC) dropped to fresh lows on Nov. 18, and the brief visit to the $56,000 level resulted in a sharp sell-off in Ether (ETH) and altcoins.

Data from Cointelegraph Markets Pro and TradingView shows that support at $60,000 was breached early on in the United States trading session, and this allowed bears to briefly take control of the market.

Traders say Bitcoin’s drop to $57K is an ‘attractive entry’ for hodlers

BTC/USDT 4-hour chart. Source: TradingView

Here’s what analysts have to say about the day’s price action and whether or not traders should be concerned about additional downside.

Major drawdowns “will be relatively short-lived”

According to a recent report from cryptocurrency research firm Delphi Digital, “The initial sell-off was largely driven by a wave of liquidations rather than a fundamental shift in narrative,” which suggests that there is a possibility that this pullback will be short-lived and potentially “presents an attractive entry point” for traders looking to gain more market exposure.

Traders say Bitcoin’s drop to $57K is an ‘attractive entry’ for hodlers

BTC/USD short-term technical outlook. Source: Delphi Digital

Delphi Digital highlighted that while there had been a significant amount of deleveraging seen across the market over the past week, it didn’t help prevent the overall increase in “aggregate liquidations across major exchanges coinciding with each sizable price dip.”

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As for what comes next for BTC, Delphi Digital sees the possibility of a dip to $55,000 “if continued selling pressure forces BTC below $57,750,” but the analysts also suggested that any “any drawdown will be relatively short-lived.”

Delphi Digital said:

The dip in price seriously challenged the lower bound of the current support zone, as “probabilities are starting to stack against it holding,” which Wick pointed out is really only an issue for short-term traders and that long-term hodlers shouldn’t be too concerned by this type of price action.

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Related: Bitcoin falls to a 1-month low after a 6% dive drops BTC price to $56.6K

Ether is still holding a bullish market structure

As far as Ether is concerned, market analyst and pseudonymous Twitter user “Pentoshi” posted the following chart highlighting the break below the previous ascending channel and retest of the support and resistance level found at its previous all-time highs.

Traders say Bitcoin’s drop to $57K is an ‘attractive entry’ for hodlers

ETH/USD 1-day chart. Source: Twitter

While some traders in the market have taken this as an ominous turn of events, Pentoshi sees the move as a positive development because it “is one of the things in the market still with bullish market structure.”

Pentoshi, however, did offer a few words of caution, saying:

“What you don’t want to see is it going back under those ath’s on a closing basis.”

The overall cryptocurrency market capitalization now stands at $2.508 trillion, and Bitcoin’s dominance rate is 43.4%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, and you should conduct your own research when making a decision.

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