- According to CoinMarketCap, Bitcoin had dropped to its 7-week low of US$53,576.74.
- On November 29, Monday, it was trading almost 5.50% at a price of US$57,377.89 and a 24-hour trading volume of US$29,430,030,163.
Bitcoin has been going through a crisis phase of late. After a high US$68,521, which it had achieved on November 5, it slumped to its 7-week low of US$53,576 as per CoinMarketCap on November 28, sending the market into a frenzy.
Bitcoin has been in a rut for last some time, and the recent drop in the market isn’t helping its cause. The ‘Black Friday’ effect was felt on Bitcoin and Co. It has been getting firm support at US$53000, and whenever it dropped, it did manage to bounce back with a higher price.
On November 29, Monday, it was trading almost 5.55% higher at a price of US$$57,563.66 and had a 24-hour trading volume of US US$29,891,483,817.
Image source: Trading view
Is Omicron the reason for the slump?
Emergence of Omicron virus has caused jitters, with major cryptos registering losses. Having said that, as the news of the virus spreads, the market has pulled up brilliantly on Monday, indicating that the news may have had a slight impact, it may not have a long-term effect.
Omicron virus did have its effect on the crypto market, with bitcoin price losing more than 5% in a matter of hours. But at the same time, a little-known Omicron crypto soared by 137% ever since WHO named the Covid-19 virus after it.
Bullish run on the horizon?
Well at the moment, it seems that the bulls will have to remain low. There are few market experts who predict that the worst-case scenario for Bitcoin could well be its inability to reclaim the US$60,000 mark. One of the reasons for that is every time the bulls tries to climb up, the bears tend to pull it down as it had been witnessed previously, especially in this volatile month.
Having said that, all is not gloom, market experts say; they feel that there are definite signs that bulls are trying to break out. The RSI line (relative strength index), which was below the 40 mark on November 26 (37.63), is currently showing an upward trend and is currently at 46.26. If it continues, it could well break out of its bearish phase and may see a bull run.
If one were to look at the Moving Average Convergence Divergence (MACD) chart, it shows that the signal line (blue line) is closing in on the red histogram despite the bearish trend, the bulls are trying to break out of the phase. The 24-hour trading volume too, seems to be marginally up by 1.08%, indicating that there is interest in the market.
What should investors do?
Well, according to experts, there are indications that Bitcoin will be able to break free from the rut. They feel that there is enough evidence in the market that there is, and with a rally expected, it would be wise for the market participants to stay positive rather than bearish.
Indeed, the 7-week low has jittered, but it has managed to bounce back strongly, indicating that Bitcoin would hold the fort and is unlikely to go into a slump which we saw in the May-June period. They predict that the trend will sustain as we near the holiday season, but they could get a breakthrough in January next year.
Bitcoin slipping to a 7-week low has created a sense of anxiety amongst the investors, still we could see more holders rather than sellers. We could see buyers coming following its slump. Furthermore, as January traditionally has been a good month for crypto markets, it won’t be a surprise if BTC regains is previous highs and regains momentum in 2022.