By Shelly Melancon (Switzerland)
The world’s first cryptocurrency, bitcoin, took a beating last Friday to trade below $54,500. The coin was being hyped to break the $58,000 resistance and cross to the $60,000 mark. However, the news of a new coronavirus strain, now named omicron, that was discovered in South Africa, made investors quickly pull a bearish trend for fear of losing out.
The initial selling move saw BTC lose $2,000 within a few minutes, wiping out many bullish traders who went long on the coin. But today, BTC is starting the week with its head held high as it crushes past the weekend retracement to hit $58,000 again. Bullish investors who entered the market have pulled prices back to the previous resistance.
Bitcoin’s impressive return to composure is an indication of the confidence that investors have in the coin. As of writing, however, BTC has now dropped below $58,000 to trade at $57,554.44 having gained 5.68% in 24 hours. Since Sunday, the coin has gained nearly 8% since its black friday plummet of 9%. But if it would hit its recent all-time high price again, BTC would need to do over double of that.
A General Market Rally
When BTC crashed, in what is now called its black friday price action, other financial markets went down. The US stock futures and the European stocks also took a dip with BTC. Now, BTC’s rally seems to have inspired those markets to also rally. As of writing, both of the aforementioned markets are nearing 0.70% gains. Spot gold and oil have also gained some ground.
It seems that whatever concerns that were caused by omicron has lost its initial impact on the market. Across Europe and Asia, governments have restricted incoming flights from certain countries as an initial plan to prevent the spread of the virus strain. The action seemed to have restored the confidence of investors in a stronger economy.
Another possible reason for BTC’s recovery is the previou price action of the coin at this time of the year. In previous years, BTC has suffered a dip around black friday and then went up to hit higher prices after the dip. This year could be another of such moves as investors await the next price movement.
Bitcoin also now trades above the 100 simple moving average, having recovered some of its Friday loss. According to data retrieved from Tradingview, BTC has formed a continuation bullish candle pattern on the 4H timeframe. Analysts expect the coin to hit $59,000 as a requisite to hit higher prices.
Other Bullish News
There is other news that could impact BTC bullishly this week. El Salvador, the now-famous ‘Bitcoin Country’, took advantage of the dip to buy 100 BTC. The country has shown an increased willingness to stack up Bitcoin whenever the chance arises. Bullish investors are key to Bitcoin’s development.
As the world prepares for a new era of digital asset system, Bitcoin has shown that it can lead the crypto market to new levels.
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