Bitcoin hit its sixth straight session of declines, the worst bearish streak since March. In these six days of selling fury, the cryptocurrency lost 12 percent of its value, but is trying to bounce back to the support of $ 58,000, with the buying momentum of the whales, the big investors.
Regulatory obstacles in China and the United States, along with a massive liquidation in the derivatives market, are some of the reasons that explain the collapse of the most popular digital currency in the world, which moves this Monday on the edge of $ 57,000 .
The downward pressure also sank ether, which has lost 12 percent in the last six sessions, although it maintains the psychological support of $ 6,000 for the minimum.
Other relevant currencies linked to the ecosystem of decentralized finance, such as the cardano or the solana, also registered strong falls, as well as the ‘memecoins’, as is the case of dogecoin.
Bitcoin loses relevant supports
After this collapse, analysts are evaluating at what point the price of bitcoin could stabilize. Along the way, it has left very relevant market levels.
From the outset, it lost the 50 session average, located at $ 59,600, a short-term dynamic support. But in addition, he left the 58,000 dollars, the critical area, as explained Alberto Toribio, Ambassador of Criptoplaza.
There is still another important support left at $ 54,500, he said. Matt Malley, an analyst at Miller Tabak. But in the opinion of this expert, the moment of truth will arrive at $ 50,000, a round and psychological number.
“It will take a drop below 50,000 for a serious warning to be generated,” added this expert.
Waiting for the rebound
Given the strong accumulated oversold in the market, experts expect a rebound in some of these important support areas.
“Oversold conditions are acceptable for bitcoin, ether and many other altcoins,” said Katie Stockton, founder and manager of Fairlead Strategies.
His positive vision in the medium term has hardly been altered. The key area to recover is $ 58,000.
Whales keep buying
In the climb to record highs that preceded the crash, large investors, known as whales, played an important role, as explained by finance.com, with their $ 724 billion in portfolio.
According to blockchain data cited by Cointelegraph, these big bitcoin holders have continued to buy in this week of declines.
Thus, the third largest wallet on the market increased its balance by 207 bitcoins, at a price of $ 62,000. Even at all-time highs, sales by these big investors remained low.
This behavior is typical of investors, not only in bitcoins but in all asset classes. Take advantage of the falls to strengthen their portfolios.
The thesis that moves these great investors sums it up Hunter Horsley, manager of the firm Bitwise, when he affirms that in reality, no fundamental aspect has changed to justify the falls. “The outlook remains incredibly optimistic,” said this expert.
Despite having lost relevant supports, bitcoin stabilized above $ 57,000 and still has a shot at recovering the critical support of $ 58,000.
If the momentum of the whales does not give way and if it is able to return to this area, the comeback could be accelerated. The drop has been wide but a 20 percent correction from highs is not uncommon in the crypto world either.
“Although this would represent a large correction from the highs, it would still be relatively minor considering how far it has come in recent months,” said analysts at Oanda. “It is not a big problem,” pointed out these experts.