Bitcoin Falls to $57k, Offers ‘Attractive’ Entry for Hodlers
Bitcoin prices fell steeply to $57k on Nov. 18, leading to a wave in sell-off for Ethereum and the altcoin market.
Despite the fall in price, some investors are looking at the relative low for BTC as an attractive entry point for ‘hodlers’ and long-term investors.
According to a report by Cointelegraph citing data from crypto research firm Delphi Digital, the recent price pullback in the crypto markets will be “relatively short-lived.” The report found that the initial sell-off for Bitcoin and altcoins was largely driven by a wave of liquidations rather than a “fundamental shift in narrative.”
Data from Delphi suggests that there is a possibility this pullback will be short-lived and potentially represents an “attractive entry point” for traders looking to gain broader market exposure.
Delphi highlighted that the significant amount of deleveraging seen over the past week did not prevent an overall increase in the “aggregate liquidations across major exchanges coinciding with each sizable price dip.
The analysts at Delphi predicted a possible dip to $55,000 for Bitcoin in the event of “continued selling pressure” forcing the price below $57,750. However, the report concluded that any pullback for Bitcoin below the current price level would be “relatively short-lived.”
The report read,
“If BTC takes another leg lower it could set up an even more attractive entry for those with long-term conviction looking to accumulate.”
The research firm gave a similar report for Ethereum, saying that the coin was attempting to flip a long-term resistance level first established in May into support. Delphi claimed ETH was “primed for trend continuation to the upside” if managed to make the flip.
Delphi analysts wrote,
“If price support gives way, the hope for bulls would shift to a possible retest and bounce off the upper trend line established from the May 2021 top to the Sep. 2021 high.”