Historically, the month of November has been bullish for the cryptocurrency market but this year, it has caught the market participants off guard. Bitcoin (BTC) started November on a good note registering an all-time high near $69,000. However, BTC demand dropped as investors and traders started cashing in on their profits ahead of Black Friday, sending the cryptocurrency back to the $53,000 region. In this article, we analyse the price trends of major cryptocurrencies in the last week and what December may hold for Bitcoin.
BTC has been struggling to get a stable footing after the massive sell-off, subsequently affecting the rest of the crypto market. However, as the funds get reallocated to various altcoins following the sell-off, the sentiment of the market has shifted towards the short-term growth projection of the assets. Evidently, from late October, the Bitcoin dominance has been in a downtrend, declining from 47% to 42% giving other major cryptocurrencies such as Ethereum the momentum to rally higher.
BTC rebounded strongly post its Black Friday dip predominantly caused by the news of the newly discovered Omicron variant of COVID-19. However, it needs to get back above the strong resistance at the $60,000 level in the short term to continue its growth into $70,000 levels by the end of this year.. On the other side, BTC will once again enjoy support at $55,000 and $53,000 with buy orders expected to fill at these levels. BTC is currently trading near $58,000, up by 3% in the last seven days.
Ethereum (ETH) mimicked BTC’s price action post the sell off on November 26 dropping briefly below $4,000 before registering a sequence of gains in the last four days. The reason for this rise can be attributed to the application of an exchange-traded fund (ETF) offering exposure to Ethereum futures contracts among other things. If this is approved, it will be the second cryptocurrency having its ETF after BTC. ETH continues to attract buyers at a major support level of $4,000 while major resistance remains at $4,600.
However, ETH is not only the crypto asset that showed the green flag this week. Shiba Inu (SHIB), Binance Coin (BNB), Terra (LUNA) and Polygon (MATIC) registered weekly gains of above 6%. LUNA boosted its value highest in the top 20 cryptocurrencies and is trading 32% higher than last week. This price action is attributed to new partnerships LUNA is making such as the partnerships with mobile game platform GAMEVIL and DeFi protocol Abracadabra. Cardano (ADA) continues to be in a consolidation phase with its price nearly 50% down from its September peak.
While most of the new investors exhibited signs of fear on the recent price actions of major cryptocurrencies, some of the big players like Latin American nation El Salvador and Michael Saylor’s Microstrategy continued to capitalise on the price dip. Microstrategy bought 7,002 BTC while El Salvador topped up 100 BTC indicating strong appetite among institutions.
However, according to few analysts, BTC is still not out of the woods for the short term as a new COVID-19 variant Omicron continues to instill fear with a possibility of panic selling in the global financial markets including crypto.
Disclaimer: This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.