Cryptocurrency traders are scrambling and scratching their heads after a precipitous drop in Bitcoin (BTC) price triggered a marketplace-wide sell-off that has nearly every token in the top-200 flashing red on November. sixteen.

Data from Cointelegraph Markets Pro and TradingView shows that Bitcoin toll dropped as low as $58,609 before finding buyers who bid the price back to $60,500.

BTC/USDT 4-hour chart. Source: TradingView

Here'southward a look at what some traders and market analysts are saying about this recent downside movement and whether or not it is only a shakeout or a sign that darker clouds are gathering.

BTC is exploring support and resistance levels

Insight into BTC's daily price action was offered by options trader and pseudonymous Twitter user 'John Wick', who posted the following chart highlighting some important support and resistance zones.

BTC/USD i-day chart. Source: Twitter

Wick said that Bitcoin is just exploring the resistance zone around its new all-fourth dimension high and he highlighted the possibility of a drib into the $58,000 to $59,500 range, like to the move that was seen in the early trading hours on Nov. 15.

Wick said,

"We are simply testing the range depression of the resistance zone. If we pause it on the close may test support zone."

Like observations were fabricated past market annotator and pseudonymous Twitter user 'Rekt Capital,' who posted the following tweet that zoomed out and looked at the price action for BTC on the monthly nautical chart.

Equally mentioned by the analyst, the price action on November. 16 was a retest of the monthly support/resistance level at $58,700. At present that BTC has successfully rebounded most the monthly $61,000 level, a bullish case can be fabricated in the weeks ahead if the cost manages to close the month above the level.

In that location's still a chance that $54,000 will be striking

A level-headed view of the latest price action was provided by market analyst and Cointelegraph contributor Michaël van de Poppe, who posted the following chart of a possible BTC price trajectory over the side by side calendar week.

BTC/USD 1-60 minutes chart. Source: Twitter

van de Poppe said,

"And then far, then adept on Bitcoin. Bouncing from back up, just still needing to break some crucial areas here, which didn't happen yet. Let's get for that first. $63,000 is important. No breakout there [leads to] further downwards momentum."

According to the chart provided past van de Poppe, if the downward momentum continues, the toll of BTC could drop to its next support level at $54,000.

Related: Bitcoin stages 'moving-picture show-perfect rebound' at $58.5K as crypto liquidations acme $875M

Fractal patterns suggest an budgeted price rally

Crypto Twitter analyst 'Allen Au' posted the following side-by-side charts of Bitcoin from 2022, 2022 and 2022 in response to concerns about $69,000 being the bike elevation.

BTC/USD 1-day charts from 2022, 2022 and 2022. Source: Twitter

Co-ordinate to the analyst, the latest downturn is not the bicycle acme, but was in fact the Wave half-dozen move seen in previous cycles. This means that "if its depression is in, BTC could exist onto Wave 7 soon!"

Should the outlined wave sequence play out, then a Wave 5 peak could be $69,000, a Moving ridge 6 depression virtually $58,600 with the potential to drop as depression as $53,000 and a cycle peak somewhere between $190,000 and $260,000 happening sometime in December 2022.

The overall cryptocurrency market cap at present stands at $two.651 trillion and Bitcoin'due south dominance rate is 43.ii%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves chance, you should conduct your own research when making a decision.