While the price of Bitcoin may be on a downward move at 20% from the all-time highs, this does seem to be quite an important opportunity to buy the dip. Black Friday is definitely living up to its name in the cryptocurrency this year as both BTC and most altcoins have been trading at their lowest point in six weeks.
Misgivings over Bitcoin at $53,000 floor
After a sell-off that took place overnight by a declining United States dollar and macro markets caused due to a new coronavirus variant, the Bitcoin-USD exchange has been trading near $54,000. As mainstream media put out the fall, most others have been far from concerned- however, most of the current prices do offer quite a golden entry opportunity.
Other investors have been poking fun at a knee-jerk article from Bloomberg in which the publication previously declared that the cryptocurrency had entered a bearish market.
As far as short-term targets go, Scott Melker, a popular trader as well as podcast host, warned over moving in with the herd, as he expects the lower levels to buy. He tweeted that they would all want to see the Bitcoin price at 53K, which would mean that they would be getting a front run at 53.5K or price nukes straight through.
With the indication that selling doesn’t seem to be moving yet, funding rates went across exchanges and remained elevated despite the liquidation over 24 hours nearing the sum of $700 million. Melker, meanwhile, has also pointed out the unusual correlation that would take place between BTC and the USD- as a result of the virus jolt.
As is often noted by Cointelegraph, Bitcoin does tend to exhibit more inverse correlation with USD, as the latter snapped up a long winning streak on Friday. However, rather than fuelling the strength of this cryptocurrency, the largest crypto coin has gone down at both the DXY and the macro markets.