Bitcoin fell to lows of $42,000 on Saturday sending shock waves across the whole crypto market. All coins started to bleed as a result of this sell-off. However, the crypto market is green today as bitcoin is up 5% in the last 24 hours.
Bitcoin dump was expected in the month of December with analysts considering $50,000 as a support area where lots of buyers were sitting. Nevertheless, bitcoin dumped beyond that to reach $42K on Saturday. A whopping 40% sell-off surprised many investors. The bleeding market led to the loss of value for holders. For smart traders, the stop losses were hit and their traders were executed.
The reason for the dump is yet unknown but there are speculations of Omicron Virus News causing the sell-off. Omicron is a new variant of Coronavirus. It has caused fresh travel bans in many countries.
Also Read: Ethereum is better than Bitcoin
The stock markets around the world are also plunging. In short, economies around the globe are taking a hit in December. Bitcoin apparently followed the course of international markets and dropped significantly whipping out the last 2 months’ gains.
Crypto Market is Green – Which Way to Go?
The crypto market has turned green on Wednesday giving hope to traders and investors. Bitcoin has gained 7.5% and it is currently trading at $51, 218. Other top gainers include Ethereum (10.5%), BNB (6.21%), Solana (12.07%), and Doge (10%).
After falling 20%, bitcoin started trading sideways for a while with a weekly close below $50K. For bitcoin price consolidation, a move above $52K is necessary. Currently, BTC is trading around $51K the next $1000 is acting as a resistance zone.
For some investors, a sudden price plunge is still expected. For instance, this user on Twitter mentioned that bitcoin could fall 50%.
A 50% bounce is expected after any significant impulsive move. This is something I talk about on YouTube and in the newsletter regularly.
That’s exactly what we have so far – a reaction to the dump and nothing more.
Need to see more to convince me this is a reversal. pic.twitter.com/SwePlfTNtv
— The Wolf Of All Streets (@scottmelker) December 6, 2021