The cost of Bitcoin (BTC) dropped to fresh lows on Nov. 18, and the brief visit to the $56,000 level resulted in a precipitous sell-off in Ether (ETH) and altcoins.

Data from Cointelegraph Markets Pro and TradingView shows that support at $threescore,000 was breached early on in the United States trading session, and this allowed bears to briefly take control of the market.

BTC/USDT iv-60 minutes chart. Source: TradingView

Hither's what analysts have to say about the mean solar day's price activeness and whether or not traders should exist concerned nigh additional downside.

Major drawdowns "volition exist relatively brusk-lived"

According to a recent study from cryptocurrency research house Delphi Digital, "The initial sell-off was largely driven by a wave of liquidations rather than a fundamental shift in narrative," which suggests that at that place is a possibility that this pullback will be brusque-lived and potentially "presents an attractive entry betoken" for traders looking to gain more than market place exposure.

BTC/USD curt-term technical outlook. Source: Delphi Digital

Delphi Digital highlighted that while there had been a meaning amount of deleveraging seen across the market over the past week, it didn't help prevent the overall increment in "aggregate liquidations across major exchanges coinciding with each sizable price dip."

As for what comes next for BTC, Delphi Digital sees the possibility of a dip to $55,000 "if continued selling pressure forces BTC below $57,750," but the analysts besides suggested that any "whatever drawdown volition be relatively short-lived."

Delphi Digital said:

"If BTC takes another leg lower it could set up an even more attractive entry for those with long-term conviction looking to accumulate."

The firm also expressed like sentiments in regard to the toll action of Ether, which briefly vicious below $4,000 earlier on Nov. eighteen. Delphi Digital highlighted the fact that Ether is attempting to flip a long-term resistance level established back in May into support, suggesting that if information technology manages to do then, ETH will "await primed for trend continuation to the upside."

Major support and resistance levels for Ether. Source: Delphi Digital

Delphi Digital said:

"If price back up gives mode, the promise for bulls would shift to a possible retest and bounciness off the upper tendency line established from the May 2022 top to the Sep. 2022 high."

Long-term holders can residue easy

Farther analysis on Bitcoin'due south price was provided by options trader and pseudonymous Twitter annotator "John Wick," who posted the following tweet highlighting the fact that even experienced traders are finding themselves concerned by Nov. eighteen'south cost action.

The dip in price seriously challenged the lower bound of the current back up zone, as "probabilities are starting to stack confronting it holding," which Wick pointed out is really only an issue for short-term traders and that long-term hodlers shouldn't be too concerned past this type of price activity.

Related: Bitcoin falls to a 1-month depression afterwards a 6% dive drops BTC price to $56.6K

Ether is nonetheless holding a bullish market construction

As far as Ether is concerned, market annotator and pseudonymous Twitter user "Pentoshi" posted the following chart highlighting the break below the previous ascending channel and retest of the support and resistance level establish at its previous all-fourth dimension highs.

ETH/USD 1-day nautical chart. Source: Twitter

While some traders in the market place have taken this as an ominous turn of events, Pentoshi sees the move equally a positive evolution because it "is 1 of the things in the market all the same with bullish market structure."

Pentoshi, nonetheless, did offer a few words of caution, saying:

"What you don't want to see is it going dorsum under those ath's on a closing basis."

The overall cryptocurrency marketplace capitalization now stands at $2.508 trillion, and Bitcoin's authorisation charge per unit is 43.4%.

The views and opinions expressed here are solely those of the writer and do non necessarily reflect the views of Cointelegraph. Every investment and trading move involves adventure, and you should bear your ain research when making a decision.