Bitcoin holds $ 57,000 level amid warning weak hands could drive further BTC price decline
Markets are rebounding, but Bitcoin is still not out of the woods when it comes to liquidations, an analysis warns.
Bitcoin (BTC) showed signs of strength at the Wall Street open on November 29, as macroeconomic markets shed last week’s fear.
Cryptocurrencies move away from “extreme fear”
Data from Cointelegraph Markets Pro and TradingView confirmed that the BTC / USD pair was at $ 57,000 when they began trading on Monday. Despite a weak start in Asia, US markets were in the mood to make amends after Friday’s crash. , and the S&P 500 recouped some of its 2.3% losses.
Bitcoin joined the improved mood, overnight performance at one point topping 7% to see local highs of $ 58,300.
Sentiment reflected the changes, with the Crypto Fear & Greed Index climbing from 21/100 to 33/100 – “extreme fear” to “fear” – after hitting its lowest level since September. “The market is rebounding,” he summarized Cointelegraph contributor Michaël van de Poppe.
“Hopefully this past weekend has shown you that you need to be relaxed when it comes to the markets. Very scared during the weekend, which is already fading quickly. Never sell after huge red candles, that’s purely emotional. Take it easy”.
Nonetheless, BTC’s price action remained anchored in a descending channel in the daily time frames, this bordered by the significant $ 60,000 zone that previously turned from support to resistance.
On the possibility of a new dive taking advantage of renewed optimism among market participants, analysis resource Material Scientist, meanwhile, had words of caution.
“A lot of liquidity has been taken from the BTC offering,” he told Twitter followers along with an updated map of the order book.
“It won’t surprise me if stop hunters go after the last longers and weak hands. Plan it with caution. “
MicroStrategy “buys the fall” for $ 400 million
However, among the strongest hodlers, conviction in Bitcoin’s profitability showed no signs of altering. On Monday, it emerged that the opportunity to “buy the dip” from last week was seized not only by El Salvador, but also by serial corporate investor MicroStrategy.
A presentation confirmed that the company had added more than 7,000 BTC to its treasury at an average price of just over $ 59,000, bringing its combined holdings to 121,044 BTC ($ 6.93 billion).
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