A curious sense of déjà vu infuses the crypto markets as Black Friday provides a rare purchasing opportunity on prompt.
Bitcoin (BTC) is down 20% from its all-time highs, but analysts suggest that now is a great time to "buy the dip."
This year's Black Friday is living up to its reputation in crypto, with Bitcoin and various altcoins trading at their lowest levels in six weeks.
Concerns about the $53,000 floor
Following an overnight sell-off caused by a falling US dollar and macromarket concerns sparked by a new coronavirus type, BTC/USD is trading near $54,000.
While the mainstream media emphasises the drop, some are unaffected – present prices, in fact, provide a great entry opportunity.
Others mocked a hastily written Bloomberg article in which the publication announced that Bitcoin had "entered a bear market."
In terms of short-term goals, prominent trader and podcast host Scott Melker cautioned about following the herd and anticipating further lower levels to buy.
"We all seemingly want to see 53K, which usually means we get a front run at 53.5K or price nukes straight through and we HFSP," he tweeted.
"The crowd rarely gets what it wants."
Despite 24-hour liquidations approaching $700 million, funding rates across exchanges remain high, indicating that selling is likely not completed.
Remember last year's Black Friday?
Meanwhile, Melker emphasised the remarkable association between the US dollar and Bitcoin as a result of the virus jolt.
According to reports, Bitcoin has a reverse association with USD, which ended a long winning run on Friday.
Rather than strengthening Bitcoin, the largest cryptocurrency has dropped in lockstep with both macro markets and the US dollar currency index (DXY).
A strong block of buyer support near $53,000, the range that correlates to Bitcoin's $1 trillion market value, stands in the way of additional Bitcoin losses.
Meanwhile, historical data provides a timely reminder that Black Friday deals are a recurring pattern in Bitcoin.
BTC/USD fell to around $16,400 in late November 2020, only to rise to and surpass $20,000 for the first time in three years.