Reshab AgarwalBitcoin touches a 6-week low as the price drops to nearly $53.5k. The correction has extended in the black Friday, and now we are sitting almost at a 20% discount from ATH. Analysts predict that this is a great time to stack crypto and buy the dip. The price of Bitcoin is still in a bullish trend pattern which we will see below, so the correction seems to be another opportunity. Even altcoins saw extended corrections with double-digit losses, but key levels like $4000 for Ethereum and $35-$36 for Polkadot held strong.
Bitcoin is bullish
When Bitcoin was unable to break through $60k and went back to $56k time and again, it was clear we might test lower support. The price was expected to come around $53k-$54k, and that is what happened. At present, it is over $54.5k, which is good, and the price actions seem solid. We bounced back and held ground at previous support, and now the next step would be to reclaim $56k. Do note that this recent drop has also liquidated a lot of long positions, which has neutralized the market.
Such corrections are normal, and we are definitely not in a bear market. Though it is essential that the levels marked in the above chart hold strong, and the price seems some jump with good volume. Another thing to note is that there is fear in the market which means we could trade sideways for a few days. The weekend could bring some volume, though, so let’s wait and see.
Should you worry?
Yesterday’s losses were the actual dip we were waiting for. Altcoins saw double-digit losses and are currently trading at attractive prices. Ethereum dipped below $4,000 and has currently recovered a bit and is back above $4,100. This is just like the last black Friday back in 2020 when the price dipped to $16k before recovering fast and breaking $20k in 3 years.
The price charts, market sentiment, and analysis suggest that we are bullish. It is just a matter of time before we recover again and reach new relative highs. Do note that the market is going to be volatile, and it is important to trade with caution.
What are your thoughts as Bitcoin touches a 6-week low on Black Friday? And do you think we are going to recover soon? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: 96% of Americans lack basic crypto knowledge, suggests crypto literacy report.