Volatility is the name of the game in the cryptocurrency market and the correction in the price of Bitcoin (BTC) during the early morning of November 11 is a reminder that new all-time highs are often followed by sharp falls to supportive supports. underlying.
Data from Cointelegraph Markets Pro and TradingView show that After falling to a low near $ 62,800 at the end of November 10, the price of Bitcoin managed to return to the $ 65,000 level, where the bulls are now looking to consolidate and regroup to initiate another move up.
Here’s a look at what analysts are saying about the outlook for Bitcoin and the cryptocurrency market as concerns about rising inflation dominate US news headlines.
Bitcoin price drops are “transitory”
The sight of a quick $ 7,000 drop in BTC may have come as a surprise to some, but to the analyst and pseudonymous Twitter user, “Nunya Bizniz”, the price action in the last couple of days is normal and transitory in nature based on the past performance of the cryptocurrency.
Breaking News Alert:
Bitcoin Dips are Transitory! pic.twitter.com/DdpL8ggHRo
– Nunya Bizniz (@Pladizow) November 11, 2021
Breaking news:
Bitcoin falls are transitory!
As seen in the chart below, which shows the price of Bitcoin along with its 20-day moving average (20-MA), It is common for a BTC price rise to be followed by a retracement that briefly touches or falls below 20-MA before another upward movement occurs.
Evergrande and inflation affect the market
Jean-Marc Bonnefous, Director of Asset Management at Tellurian ExoAlpha, explained current macroeconomic factors and highlighted that “Much has been made of the impact of Evergrande’s story on recent market downturns.”
As a way of making the event more relatable to cryptocurrency holders, Bonnefos stated that the “Evergrande news is to stocks what Elon Musk’s tweets are to cryptocurrencies” in the sense that it is “somewhat manipulated news to move the markets.”
According to Bonnefos, “Cryptocurrency markets seem to be overreacting” to the news, and “The recent drop is probably more of a technical consolidation after the strong rally in recent days.”
And it’s not just negative Evergrande headlines and influencer tweets that are affecting price action in the cryptocurrency market. According to Bonnefos, The recent 6.2% rise in the US Consumer Price Index (CPI) also points to a major factor influencing global financial markets and the price of Bitcoin.
Bonnefos said:
“The recent shocking inflation figures in the United States should be a fundamental driver of support for Bitcoin prices, beyond short-term tactical selling pressure.”
Bitcoin is in the process of a necessary pullback
A final word of encouragement was offered by the Twitter user, ‘GalaxyBTC’, who public The following graph shows a possible trajectory for the price of BTC to reach $ 75,000 in the short term.
The analyst said:
“Yesterday’s pullback was necessary to continue the bull run in a healthy way. I think now we will start to climb more strongly.”
The total cryptocurrency market capitalization currently stands at $ 2.847 trillion and Bitcoin’s dominance index is 43.1%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Each investment and commercial movement involves risks, you must do your own research when making a decision.
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