Volatility is the name of the game in the cryptocurrency market and the November 11 overnight settlement in the price of Bitcoin (BTC) is a reminder that new all-time highs are often followed by strong false signals towards underlying support levels.
Data of Cointelegraph Markets Pro and TradingView shows that after falling to a low near $ 62,800 late on Nov. 10, Bitcoin price managed to make its way to the $ 65,000 level where the bulls are now looking to consolidate and regroup for another higher momentum.
Here's a look at what analysts are saying about the outlook for Bitcoin and the cryptocurrency market as concerns about rising inflation dominate the news headlines in the US.
Bitcoin's declines are "transitory"
The sight of a rapid $ 7,000 decline in BTC may have come as a shock to some, but for analyst and pseudonymous Twitter user 'Nunya Bizniz', the price action in recent days is normal and transitory based on past performance. of Bitcoin.
Breaking News Alert:
Bitcoin falls are transitory! pic.twitter.com/DdpL8ggHRo
- Nunya Bizniz (@Pladizow) November 11, 2021
As seen in the graph below, which shows the price of Bitcoin along with its 20-day moving average (20-MA), it is common for an increase in the price of BTC to be followed by a retracement that briefly touches or falls by below MA 20 before rising again.
Evergrande and inflation affect the market
Jean-Marc Bonnefous, Head of Asset Management at Tellurian ExoAlpha, provided insight into the macro factors at play, highlighting the fact that “there has been a lot of talk about the impact of Evergrande's story on the recent sell-off in the market. "
As a way to make the development easier for crypto holders to identify, Bonnefos stated that "Evergrande news is to stocks what Elon Musk's tweets are to cryptocurrencies" as they are "news somewhat. manipulated to move markets. "
According to Bonnefos, "the crypto markets appear to be overreacting" to the headlines, and "the recent drop is probably more of a technical consolidation after the strong rally in recent days."
And it's not just negative Evergrande headlines and influencer tweets that are affecting price action in the cryptocurrency market. According to Bonnefos, the recent 6.2% rise in the US Consumer Price Index (CPI) also points to a major factor influencing global financial markets and the price of Bitcoin.
Bonnefous said:
"The recent shocking inflation figures in the US should be a fundamental driver of support for Bitcoin prices, beyond short-term tactical selling pressure."
Related: Here's why Bitcoin losing $ 6K in hours was good for BTC price action
Bitcoin is in the process of a necessary new test
A final word of encouragement was offered by Twitter analyst user 'GalaxyBTC', who aware the chart below outlining a possible trajectory for the price of BTC to hit $ 75,000 in the short term.
The analyst said:
“Yesterday's retest was necessary to continue the bull run in a healthy way. I think now we will start pumping harder. "
The overall cryptocurrency market capitalization is now $ 2.847 trillion and Bitcoin's dominance rate is 43.1%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade move involves risk, you should do your own research when making a decision.
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