Bitcoin Prices Drop After the First Omicron Instance in the United States
In Wednesday’s market hours in the United States, Bitcoin temporarily fell beneath $57,000 following the announcement that health authorities in the nation had verified the first instance of the new coronavirus variety, Omicron, in the state of California.
At the time of publishing, the biggest virtual currency by market valuation was moving slightly above $57,000, but it was still lower for the day on the cryptocurrency exchanges’ trading platform.
The decrease erased Bitcoin’s previous gains, which occurred when the cryptocurrency rose above $59,000 from a low of about $55,920 a day earlier. Stocks were also down on Wednesday, with the S&P 500 index down by 0.49%.
One analyst is optimistic about the possible long-term influence of Omicron on the cryptocurrency market.
According to Danny Chong, co-founder of Tranchess, a Binance Smart Chain-based asset-tracking, and yield-enhancing framework:
“Whereas the new coronavirus hybrid version has raised concerns about the potential for a decline in cryptocurrency prices, it is also important to note that crypto markets have experienced strong growth all through the disease outbreak.”
As per CoinDesk’s statistics, Ethereum has also fallen in value, falling to roughly $4,575 from a high of $4,782.40, bringing its four-day exceeding performance to an end.
As an individual investment, ether produced a good monthly yield in November, outpacing Bitcoin and other traditional assets such as the S&P 500, Gold, and government bonds.
However, a few additional layer 1 blockchain coins, such as Polygon (MATIC), Terra (LUNA), and Solana (SOL), continued to trade in the green on Wednesday.
A Specialist’s Point Of View
The price momentum of Bitcoin (BTC) may improve, which would prevent an additional fall between the $53,000 and $55,000 support zone.
A significant move over the $60,000 resistance level will be required for buyers to achieve an upside goal of approximately $69,000, which is the all-time high price.
For the time being, Bitcoin is trading in a narrow range and has remained quite stable over the previous week. The RSI is climbing from oversold readings reached last week on the daily chart, which is a sign that a price rebound is likely to follow shortly after.
Because of the upward-sloping 100-day moving average, stability is still in place for the time being. This implies a favorable intermediate-term trend, which might lead to increased purchasing on pullbacks shortly.
Notable Events Today
Australia exports and imports goods at 8:30 a.m. HKT/SGT (12:30 a.m. UTC) (Oct. MoM).
The Japan consumer sentiment barometer (Nov) will be released at 1 p.m. HKT/SGT (5 a.m. UTC).
Eurostat producer pricing index (October year-on-year/month-on-month) at 6 p.m. HKT/SGT (10 a.m. UTC).
9:30 p.m. HKT/SGT (1:30 p.m. UTC): Raphael Bostic, Head of the Atlanta Federal Reserve, comments on the state of the housing market.
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