According to its analysis, $50,000 is a crucial psychological level — and warned a break below this price point would open the door to a retest of $30,000, lows last seen in July.
Crypto bulls should be grateful for Bitcoin's current sell-off, a research firm has argued.
BOOX Research says profit taking "was likely overdue against technically overbought conditions" — and that the current consolidation is "healthy" because it prepares the market for its next leg higher.
In an article on Seeking Alpha, the authors dismissed bears who are proclaiming that "the top is in" for Bitcoin's price and that the "crypto winter" is starting after BTC retraced 20% from all-time highs of $69,000.
According to its analysis, $50,000 is a crucial psychological level — and warned a break below this price point would open the door to a retest of $30,000, lows last seen in July. Stressing that such a pullback is unlikely and would require an "unforeseen major regulatory setback," it added:
"Bitcoin has made several key pivots around $50,000 going back to February of this year. We expect the bulls to put up a strong fight and hold that line if it gets down there, which could be a good spot to add to positions."
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BOOX Research says a return above $60,000 would set Bitcoin up for a retest of all-time highs — and accelerating to $75,000 would subsequently open the door to a target of $100,000 in 2022. The likes of Bloomberg Intelligence have also repeatedly argued that a six-figure price for Bitcoin is now "the path of least resistance."
When it comes to the current state of play, Bitcoin is having to fight tooth and nail for every dollar in price appreciation.
The world's biggest cryptocurrency suffered a rejection at $58,300 in the early hours of Friday morning — but did bounce off support at $57,000. All of this indicates that we are starting to see BTC grind upward, securing higher lows.
With the U.S. entering into the Thanksgiving weekend, we could see lower trading volumes between now and Monday. From here, attention will turn to the monthly close — and whether BTC can set a new record after ending October above $61,000.
Novembers typically deliver healthy levels of price appreciation for BTC, but 2021 is bucking the trend — with prices down 5.77% across the month so far.