Bitcoin Dumps Below $56K as Cryptocurrency Correction Worsens

The crypto market correction has accelerated as the week comes to a close, with Bitcoin prices dumping to a monthly low. The last time BTC fell below $56K was on Oct. 13, but it soon recovered to a new all-time high of $69K on Nov. 10.

Bitcoin prices fell to a monthly low of $55,650 during Friday morning’s Asian trading session, according to Tradingview taking prices from Binance. The drop marks a loss of 6.7% on the day, as reported by CoinGecko.

At the time of writing, the asset had recovered slightly to trade at $56,220, but it has been trending steadily downwards since the beginning of this week. Bitcoin has now fallen below the 50-day moving average and is currently hovering around support levels.

A fall below this could see the asset tumble to the next support zone, which is around the $53K area.

Bitcoin Analyst Reaction

Industry observers and Bitcoin technical analysts were not too concerned about the pullback, with most just talking about buying the dip.

I think I’ll call this one “buying the dip” pic.twitter.com/57kmAtycGF

— Willy Woo (@woonomic) November 18, 2021

CNBC host and crypto trader Ran Neuner commented on the fall below $56K attributing leveraged positions to the current declines.

“I wish this market would just drop to $53000 so we could get all the leverage out and move on… this slow road down isn’t working!”

Fellow analyst Dylan LeClair has been keeping an eye on exchange balances, and he said it all looks healthy there.

“The financial landscape was irreversibly changed during the response to COVID, and bitcoin has been adopted by an increasing number of people, institutions, and even governments accordingly.”

Bitcoin is currently trading down 18.5% from its all-time high just nine days ago, but nobody seems too concerned yet.

Elsewhere on Crypto Markets

The total market capitalization has shrunk by 6% over the past 24 hours to $2.6 trillion. As usual, the rest of the altcoins are bleeding heavily, with Ethereum dumping 5% in a fall to just over $4,000.

Other major losers today include Solana (SOL) dropping 8%, Ripple (XRP) dumping 7%, and Shiba Inu (SHIB), shedding 10.5% on the day.

The only two top 50 coins bucking the trend at the moment are metaverse-based Decentraland (MANA) which is up 20%, and Sandbox (SAND), adding 13%.