Source : coingape.com
Black Friday delivers a rare buying opportunity right on cue for Bitcoin investors, with black Friday living up to its name in the cryptocurrency market this year. Bitcoin is down 20.88% from its November 10 all-time high above $69,000. Bitcoin price dropped as low as $53, 706, the lowest in six weeks.
Today’s crash was triggered by South Africa’s exclusive warning about a rapidly spreading new coronavirus variant. With the steep drop in global stock markets and the U.S. stock index futures, cryptocurrencies also bore the burn.
This is the second crash this week after the one that was triggered by India when earlier this week a screenshot of the Indian Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 was leaked. The Crypto Bill is scheduled to get listed for the upcoming winter session in the Indian parliament starting on 29 November. Following the leak, the crypto market was flooded with speculations about a crypto ban given the confusing brief in the screenshot.
These crashes continued today as Bitcoin lost 8% on the day with a market cap dropping 7% over the same period to $1.02 trillion.
Bitcoin Price Decline Offers A Good Entry Opportunity
At the time of writing, Bitcoin price is trading at $54,355 and is sitting on robust support at $53,706 close to the 100-day Simple Movign Average (SMA). If the big crypto drops below this level, Bitcoin price could drop to tag the $51,642 support floor.
If this happens, investors should not be worried, however , because the fall will arguably offer a golden entry opportunity.
The downward movement of the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators accentuate this bearish narrative. The nose-diving RSI and its position at 36.70 indicate that the bears are firmly in control of the Bitcoin price.
BTC/USD Daily Chart
On the upside, if BTC closes the day above the immediate resistance at $58,946, it will rise above the $59,000 level to tag the resistance posed by the 50-day SMA at $60,718. A decisive bullish breakout will be seen once Bitcoin reclaims the $60K level and break out above the 50-day SMA after which the November 15 range high above $66,000 will be the next logical move.