The price of Bitcoin dropped below $57k on November 18th and even visited the $56k level briefly. This led to a global sell-off in Ethereum (ETH) and other altcoins. However, traders have revealed that hodlers see this present range as an ‘attractive entry.’
Major Pullbacks Will Be Short-Lived
Delphi Digital, a crypto research firm, recently revealed in a report that:
“The initial sell-off was largely driven by a wave of liquidations rather than a fundamental shift in narrative.”
This means that this drawdown may be short-lived. Also, traders may see this as an attractive entry, especially those searching for more exposure and experience in the market.
Delphi Digital also revealed that while the market has experienced significant deleveraging over the last week, there was no prevention of the general rise in the “aggregate liquidations across major exchanges coinciding with each sizable price dip.”
Delphi Digital also believes that BTC could experience a dip to $55k “if continued selling pressure forces BTC below $57,750.” Delphi Digital revealed that:
“If BTC takes another leg lower, it could set up an even more attractive entry for those with long-term conviction looking to accumulate.”
Furthermore, Delphi Digital had similar sentiments regarding Ether’s price action that dropped below $4,000 briefly on November 18th. The firm pointed out that Ether is making attempts to flip a resistance level in the long term. This was established in May, and if it achieves this, Ethereum will “look primed for trend continuation to the upside.”
According to Delphi Digital:
“If price support gives way, the hope for bulls would shift to a possible retest and bounce off the upper trend line established from the May 2021 top to the Sep. 2021 high.”
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Wilson is a successful crypto analyst and content writer with many years of writing experience in finance and blockchain fields. His interests are in crypto-asset research and technical analysis, Fintech, Blockchain, DeFi, NFTs, and Personal Finance.