Following a steep drop in the value of Bitcoin (BTC) on Friday, amid worries that a new coronavirus variant would wreak havoc on conventional markets, the cryptocurrency market began to recover on Saturday, November 27.
Indeed, the flagship digital asset Bitcoin, is once again trading in the green, which has, in turn, had a knock-on effect on the other cryptocurrencies, whose prices have begun to rise as a result of the recovery.
A notable difference between Bitcoin’s value at the start of 2021 and its current value is that Bitcoin is trading at $55,223 at the time of writing, representing an 88% return on investment for Bitcoin since the beginning of the year when it was trading at $29,286.
The flagship digital currency is up 0.25% in the past 24 hours and down 5.87% over the previous week, giving it a market capitalization of $1.04 trillion and a market dominance of 41.6%.
Crypto market faces uncertainty
The cryptocurrency market is in a state of uncertainty, with experts split on whether the market has lost its momentum after reaching an all-time high earlier in November. According to some, the market is beginning a bearish trend, while others anticipate new all-time highs will follow the recent slump before the end of 2021.
A notable development is that the cryptocurrency market has re-entered “extreme fear” territory for the first time since $43,000, as Bitcoin was trading at roughly $53,700 at one point on Friday, just a few hours after it had been trading at around $58,000. Crypto Birb, a certified technical analyst, shared the following thoughts on the matter
“BTC EXTREME FEAR IS BACK! If somebody told me we’d see CT drowning in panic and fear with Bitcoin trading over $50k USD, I’d never believe it.”
Elsewhere, top cryptocurrency trading analyst Michael van de Poppe acknowledged that the reality of a prolonged cycle has begun, as it looks that crypto expert Plan B’s stock-to-flow model target of $98,000 by the end of November would be missed
“Are we done correcting? I don’t know. The entire move from yesterday has been reversed, and we’ve created new lows on Bitcoin. Meanwhile, the world is panicking regarding COVID again + tapering stories. Are we in areas to look for swing buys? I definitely think so,” said Poppe.
Likewise, crypto consultancy and educational platform Eight Global highlighted:
“Unfortunately, $BTC didn’t manage to break the crucial resistance zone of $59.5-60.5K, and it’s now making a lower low. The green box BTC is currently trading at should hold as support; if it doesn’t hold, we may see BTC drop further to ~$52.5K.”
The global crypto market
Nevertheless, over the 24 hours, the global cryptocurrency market has shown indications of development, returning to green and growing in value by almost 1.5%, putting it back above $2.5 trillion, as per CoinMarketcap statistics.
With market volume over the last 24 hours being $147.78 billion, making a 2.14% decrease. In 24 hours, the total volume in DeFi is currently $23.35 billion, 15.80%, whereas stablecoins is now $113.92 billion, which is 77.09% of the total crypto market 24-hour volume.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing your capital is at risk.