The fear really kicked in yesterday cryptocurrency market. Yesterday morning news came out about a new even more contagious variant of the corona virus and virtually all financial markets were hit hard, including bitcoin (BTC). The total market cap of all crypto fell from $2.75 trillion to $2.54 trillion and, according to the fear & greed index, market sentiment was halved to extreme fear (21):
Bitcoin Fear and Greed Index is 21 – Extreme Fear
Current price: $54,346 pic.twitter.com/oJNPwQh07f— Bitcoin Fear and Greed Index (@BitcoinFear) November 27, 2021
Does bitcoin find a bottom?
From bitcoin price plunged from $59,000 to $54,000 yesterday morning, a loss of 8.5% and not even the low point. Bitcoin fell further to USD 53,500 in the early afternoon, falling below 100 days simple moving average (SMA) off.
Nevertheless, bitcoin subsequently made a considerable bounce and briefly tapped $55,000 again, but the price was then rejected there again and hovered around $54,500 for the rest of the day. However, around midnight, bitcoin made another dip, but also a small bounce.
Bitcoin then held fairly steady around the USD 54,500 mark for the rest of the night. At 9 a.m. this morning, bitcoin jumped and peaked at around $55,400, but at the time of writing it is correcting back down and dropping back to the $54,500 mark.
Covid variant news isn’t ideal. Yet to see any sizable amount of liqs or OI flush, so a wick lower is very possible.
However, STH cost basis, or what I’ve been calling the “on-chain bull market support band”, sits at $53K. Let’s see if it holds over these next few daily closes. pic.twitter.com/v2dO7EYByO
— Will Clemente (@WClementeIII) November 26, 2021
Has bitcoin been able to find a bottom around that 100-day SMA? The price may be at a critical point right now. Should bitcoin recover, it will be at $58,500, around 50 days exponential moving average (EMA), and of course the $60,000, may well have some resistance. Should bitcoin fall further, support may be around $50,000 and the 200-day EMA.
If stocks are entering a near correction phase, I would like to see #BTC start outperforming similar to Sep/Oct time frame.
The bulls must protect 53k to 50k.
— Daniel Joe ⚡️ (@DanielJoe916) November 27, 2021
Will the dip be bought?
Because the on-chain data for bitcoin still a very bullish Drawing a picture for the price, we see that “buy the dip” and “black friday sale” are currently trending with bitcoin. El Salvador also bought the dip again, but more about that later on Crypto Insiders.
Analyst firm Santiment reports that on Thanksgiving, which was last Thursday, more than 200,000 unique BTC circulated on the network for the first time in six months, and there were even more yesterday. The company calls this increase in activity promising:
???? For the first time in over six months, #Thanksgiving saw over 200k unique #Bitcoin circulating on its network. Then, on #BlackFriday, $ BTC‘s circulation moved up even higher. Utility is the name of the game in #crypto, so this increase is promising. https://t.co/1CljzVlYYu pic.twitter.com/cHysMg8JhD
– Santiment (@santimentfeed) November 27, 2021
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