Bitcoin Price Analysis: BTC Drops Below $58,000 As Sellers Retake Control Of Current Session 

Daily Bitcoin BTC Price Forecast

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Last Updated December 1st 2021
5 Min Read
  • The Bitcoin price dropped marginally, slipping below $58,000 during the ongoing session. 
  • BTC had registered a significant increase on Monday, rising by almost 8%. 

The Bitcoin price registered a marginal drop during the ongoing session, as sellers forced the price back below $58,000. BTC had dropped significantly on Friday, as the price dropped by over 8%. BTC recovered on Saturday, as the price pushed up by 2%, before falling back on Sunday and settling at $54,498. On Monday, the price pushed up significantly as it rose by almost 8%, moving up to $58,360 before dropping during the current session. 

Bitcoin Price Chart Indicates BTC Could Drop to $57,000

The Bitcoin price had pushed up significantly on Saturday (20th) when it pushed up by over 3%. However, the 50-day SMA came into play at this level as resistance, and the price dropped on Sunday, registering a marginal drop. BTC continued to drop on Monday, falling by almost 6% and settling at $56,335, before pushing up on Tuesday and moving to $57,678. BTC registered a marginal drop on Wednesday before pushing up on Thursday, rising by 2.50% and settling at $58,813.

Image: BTC/USD daily

BTC/USD daily chart 120121

After pushing up to $58,813 on Thursday, the Bitcoin price registered a sharp drop on Friday, falling by over 8%, dropping to $53,947. The price recovered on Saturday, as it rose to $55,054, but fell back on Sunday, registering a drop of 1.68%. Despite the negative end to the weekend, the Bitcoin price pushed up significantly on Monday, rising by almost 8% and settling at $58,360. BTC has dropped on Tuesday, with the price currently at $57,500 as sellers look to push it to $57,000.

We can see that the Parabolic SAR is just flipped to bullish, indicating that we could see the price push up.

IntoTheBlock’s IOMAP for the Bitcoin price shows us that BTC has strong support at around $56,820. At this price level, over 1.8 million addresses have bought more than 1.1 million BTC. BTC also faces resistance at around $58,379. At this price level, over 1.6 million addresses have sold more than 824,000 BTC.

Image: IntoTheBlock 

BTC/USD volume chart 120121

The 4-hour Bitcoin price chart shows that BTC had dropped to $56,371 on the 24th after failing to push above the 20-bar SMA. The price recovered from this level, as it moved above the 20-bar and 50-bar SMAs and moved to $59,013. However, after reaching this level, the price turned bearish, as it slipped back below the 20 and 50-bar SMAs and settled at $53,741. BTC could only push up to $55,246 before dropping marginally and then moving up to $57,606, pushing back above the 20 and 50-bar SMAs. With the 50-bar SMA acting as support, BTC maintained this price level and is currently at $57.750.

The MACD is currently bullish, indicating that we could see the price push up during the ongoing session.

Image: BTC/USD 4-hour

BTC/USD 4-hour chart 120121

What’s Next For Jack Dorsey?

Twitter CEO Jack Dorsey has been a well-known Bitcoin advocate and enthusiast. As expected, when he announced his decision to step down as Twitter CEO, crypto-enthusiasts were excited. Many, including Binance's Changpeng Zhao, seem to be wondering if Dorsey plans to work in the crypto space.

In response to Dorsey's announcement, Zhao said:

"Well done @jack. Welcome to full time crypto?"

Dorsey is still the CEO of Square Inc., the financial services and digital payments company. Essentially, this means that Dorsey has chosen to focus on the payments arm over his social media platform.

Notably, Twitter CFO Ned Segal has not pushed Dorsey’s crypto-endorsement for the platform. According to WSJ, Segal had previously commented that cryptocurrencies investment “doesn’t make sense right now.” In the context of the asset’s volatility, the CFO also said that the company prefers to hold less volatile investments as it would have to change its policy otherwise.

On the contrary, Square is reportedly the third-largest public holder of Bitcoin. It holds around 0.5% of its cap in BTC, which comes to around .038% of the total supply of the asset. Analyst and crypto-influencer CryptosRUs believes that Dorsey might even follow Michael Saylor’s footsteps with Square. Especially since MicroStrategy holds around 95% of its market cap in Bitcoin.

Did India Misinterpret “Crypto Ban?”

The creator of India’s crypto bill Subhash Garg recently clarified confusion around the bill. The parliamentary discussions around a controversial crypto bill sparked fears around the ban on cryptocurrencies, with no clear indication about the ban’s scope. 

Per earlier reports, an episode of panic selling among Indian investors followed the announcement. In an interview with local news channel News 18, Garg clarified:

“[The description of the crypto bill] was perhaps a mistake. It is misleading to say that private cryptocurrencies will be banned and to intimate the government about the same.”

Garg believes that the Indian government should formulate a bill after discussing it with stakeholders and crypto investors. Furthermore, the bill suggests banning private cryptocurrencies without clarifying what the word “private” stands for.

Hence, the crypto community in India self-interpreted two different versions of the bill’s agenda. One considered banning all non-government-issued cryptocurrencies. The other excluded assets running on public blockchains like Bitcoin and Ethereum.

Garg also pointed out a flaw in classifying cryptocurrencies as assets after underscoring the vast ecosystem powered by disruptive technology. He also said that crypto exchanges have limited interests and do not represent the entire community:

"You don’t classify the wheat that you produce, you don’t classify the clothes you produce, as assets. That is too much of oversimplification to treat this as an asset.”

Garg added that the central bank digital currency initiatives, especially in India, are complex. According to him, the government first needs to address challenges, including the unavailability of smartphones and digital wallet issuance.

Bitcoin Price Is Expected To Reach These Levels 

Looking at the Bitcoin price chart, we can see that BTC has registered a drop during the ongoing session. If sellers are able to push the price down, we could see BTC drop to $57,000. However, if the price manages to recover, we could see it move back above $58,000.