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Bitcoin lowers slightly as experts eye $49,000

By Noemi Jansana / Alejandra Zamora

Date: Tuesday 23 Nov 2021

Bitcoin lowers slightly as experts eye $49,000

(Sharecast News) - Bitcoin maintains its bearish tone on Tuesday, after the Nov. 22nd session stretched its recent lows to the vicinity of $55,500, according to CoinMarketCap. Following news that Jerome Powell will renew his term at the head of the Federal Reserve for another four years, with Governor Lael Brainard as vice chair, experts believe the central bank will keep the stimulus of tapering, which has again boosted the dollar and punished digital assets.
However, the recent declines, for the time being, are in response to the corrective pattern in which the world's largest cryptocurrency has been immersed in for the past week. This pattern is due to profit-taking from recent all-time highs at $69,000. "There is always likely to be some profit-taking by investors, which translates into price weakness. Both Bitcoin and Ethereum are going from strength to strength, and market ups and downs are part of this story," commented Simon Peters, analyst at eToro.

Therefore, the second cryptocurrency by market capitalization bottomed a little earlier than Bitcoin, reaching $3,974 on November 18th. However, it also recovered a little faster, despite the fact that on Monday it gave up to the vicinity of $4,000. During the last few hours, it has rebounded and remains above $4,100. The rest of the 'altcoins' have seen some recovery, despite the total capitalization remaining unchanged at $2.55 trillion.

As for Bitcoin, technical analysts focus on the $55,000 level. "A loss of this support could test $53,300, and a failure to reach it would trigger a deeper move towards the 100-day and 200-day moving averages, which are lurking below $49,000. Momentum appears to have stalled between $60,000.00 and $61,000.00 for now," commented Jeffrey Halley, analyst at Oanda.

However, optimism persists among some analysts. "There is no doubt that Bitcoin is oversold in terms of technical price levels," noted Naeem Aslam, analyst at Oanda. This indicates that "the floor of the correction should not be far away", as José María Rodríguez, technical analyst at Bolsamanía, pointed out. "At the moment we have no figure of return or exhaustion of the falls in the future of Bitcoin, which does not mean that we can not have it soon," he added.

"As we have already commented recently, Bitcoin has important support in the $52,000-53,000 range, but it´s not necessary to touch it to build a rebound," the expert explained, before concluding, "which means that, in theory, this price range may end up being an optimal level to buy in the short-term."

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