Should you buy or sell Bitcoin after falling below $55,000?
Summary:
Bitcoin extended the current declines below $55,000 on Friday.
The pioneer cryptocurrency was not spared amid fears of the new Covid variant.
Bitcoin still enjoys strong support from the 100-day MA.
The Bitcoin price (BTC/USD) is down more than 7% over the last 24 hours amid growing concerns about the new covid variant. The pioneer cryptocurrency was not spared in the latest crash in cryptocurrency prices as investors shifted their assets towards more stable instruments.
The BTC/USD is also under pressure because of the $3 billion bitcoin options scheduled to expire on Black Friday. The market liquidated $670 million worth of BTC in the last 24 hours amid an increased sell-off.
Is the pullback an opportunity to buy?
From an investment perspective, Bitcoin is still viewed as a potential future replacement of fiat currency. As a result, its long-term outlook remains positive with more mainstream financial services providers embracing crypto.
In the last 24 hours, the BTC trading volume increased by nearly 22% despite falling cryptocurrency prices.
This implies that there are those looking to capitalise on the Covid-driven decline to buy more bitcoin while others flee the market.
Technically, the BTC/USD seems to be trading within a descending channel formation in the intraday chart. As a result, bitcoin has plummeted closer to the oversold conditions of the 14-day RSI.
However, with the pioneer cryptocurrency yet to reach oversold conditions, investors could target extended declines at about $49,301, or lower at $44,435.
On the other hand, if the 100-day MA provides solid support triggering a rebound, bitcoin could find resistance at about $59,062, or higher at $63,582.
