He added that for BTC and the entire cryptocurrency market, a correction of 20-30% is the norm

​Analyst Justin Bennett has predicted a drop in the bitcoin exchange rate to $55 000

17.11.2021 - 11:45


2 min

What’s new? According to trader Justin Bennett, bitcoin is currently in a “sticky zone.” The analyst said so on his Twitter account, explaining his view that the first cryptocurrency is trading near the $60 000 support level. If the asset overcomes this mark, its exchange rate will drop to $55 000, Bennett believes. He added that the nearest resistance level is around $63 300.

What else did the analyst say? The trader highlighted that many market participants have already started to panic, even though the price of the BTC has decreased by only 13% from its all-time high of $69 000. He explained that for bitcoin and the entire cryptocurrency market, a correction of 20-30% is the norm.

On November 16, the bitcoin exchange rate was hovering at a two-week local low of $58 500. As a result, traders' positions worth over $800 million were closed en masse.

What is the reason for the rate drop? The drop in the rate may be a consequence of the implementation of new reporting rules for cryptocurrency brokers and operators in the United States. The US President Joe Biden signed a law requiring companies dealing with digital assets to report transactions over $10 000 to the tax service.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy