Bitcoin’s Recent Performance: A Market Analysis
The cryptocurrency market has faced significant turbulence in November, with Bitcoin (BTC) experiencing a steep decline. In the last 24 hours alone, Bitcoin has lost 9.6% of its value, falling briefly below the $82,000 mark before settling near $83,400 at the time of writing. This drop highlights heightened bearish momentum in the crypto market.
Understanding the Selloff: Retail Investors Take the Spotlight
According to analysts at JPMorgan, this ongoing selloff is primarily driven by retail investors liquidating spot Bitcoin and Ethereum ETFs. On the contrary, crypto-native traders who contributed to October’s market correction seem to have stabilized their positions via perpetual futures. The shift to retail dominance in November has led to extended downward pressure on the market.
Altcoins haven’t been spared either. Leading coins like Ethereum (ETH), XRP, and others are deep in the red, reflecting broad market pessimism.
Technical Indicators Point to Bearish Momentum
Technical analysis further confirms Bitcoin’s bearish trend. On the BTC/USD daily chart, the Relative Strength Index (RSI) stands at a low of 22, indicating oversold conditions and strong downward momentum. The Moving Average Convergence Divergence (MACD) lines also show extreme bearish signals.
Furthermore, Bitcoin has breached significant support levels. Earlier this week, the cryptocurrency fell below the 61.8% Fibonacci retracement level at $94,253. By Wednesday, it had broken the $90,000 support level, eventually dumping another 10% by Friday.
What’s Next? Key Levels to Watch
If the selloff continues and Bitcoin closes below the $85,000 support level, the market may witness Bitcoin testing the psychological $80,000 level. However, should the $85,000 support hold, Bitcoin might recover and push toward the next resistance at $90,000.
Invest in Bitcoin Safely
For those considering entry into the market, platforms like eToro offer an accessible way to trade cryptocurrencies like Bitcoin, Ethereum, and more. eToro provides features such as social trading and chart analysis tools, helping both new and experienced investors make informed decisions.
Remember, cryptocurrency investments carry risks due to high volatility. Always invest wisely and consult a financial expert if necessary.
