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Bitcoin recovers to trade at $ 57,200;  Market sentiment remains apprehensive


Bitcoin, the world’s largest cryptocurrency, recovered on Monday, after losing more than 8% or $ 6,000 on Black Friday following updates on the new variant of the coronavirus Omicron.

The price of bitcoin rose more than 5% to $ 57,230 (over Rs 43 lakhs) at 10:50 am IST on Monday, fighting the bullish momentum that has been dragging the market over the past two weeks. Bitcoin did not retest $ 60,000 last week due to the continued strength of the US dollar. Additionally, the Federal Reserve hinted at a decrease in bond purchases and an increase in interest rates, earlier than previously expected, making risky assets like cryptocurrencies less attractive. The final push came last week when the WHO announced Omicron as a worrying variant.
The World Health Organization has said that Omicron could be potentially more virulent and transmissible. Countries, like the United States, will restrict travel for non-U.S. Citizens from South Africa and other countries starting Monday.
While prices appeared to have recovered, market sentiment remains apprehensive. According to the Crypto Fear and Greed Index, emotions are now the scariest since September. The Fear and Greed Index takes a basket of variables to calculate a score of how investors are feeling. The score ranges from 1 to 100 and currently sits at 33, slightly higher than Sunday’s 27.

Altcoins, or major cryptocurrencies other than Bitcoin, also surged on Monday, with Ether leading the rally. Ether rose more than 7 percent to $ 4,320 (Rs 3 lakh). The coin has jumped more than 4% in the past seven days, briefly falling below $ 4,000 on Friday.

Ethereum, its underlying blockchain, reached another milestone that sparked the 4% Ether rally last week. According to data from Dune Analytics, the number of unique addresses on Ethereum jumped to 4 million last week, an all-time high. However, a user can have multiple addresses.

Other altcoins like Binance Coin, Solana, and Cardano also rose by over 4%, 7% and 6%, respectively. Ripple’s XRP also jumped nearly 8% to trade at $ 0.9896. Polkadot rose over 8% and Dogecoin is trading over 2.5% higher.

Crypto Technicals – Trend reversal around the corner

Analysts at WazirX’s trade office believe BTC is stronger and the daily timeframe indicates the formation of a cup and grip pattern. A cup and handle pattern looks like a cup and a handle where the cup is shaped like a “U” and the handle has a slight downward drift.

Bitcoin techniques, a cup and handle pattern

“We expect resistance at the $ 68,000 level and immediate support at the $ 53,000 level. We believe a trend reversal is imminent,” a spokesperson for WazirX said.

Ether, the number two cryptocurrency, continues to maintain its stronghold against Bitcoin. The coin outperforms Bitcoin by a mile. While over the past month Bitcoin has declined by more than 5%, Ether has increased by more than 1%, according to data from coinbase.com.

Bitcoin recovers to trade at $ 57,200;  Market sentiment remains apprehensive Bitcoin-Ether Daily Trend

Against Bitcoin, Ether broke the daily trend of the triangle pattern and hovered around the $ 0.075 level. “Adoption around DeFi is steadily increasing and we expect a turnaround for ETH soon. Immediate support is expected around 0.071 and the next resistance at 0.079,” said WazirX spokesperson.

(Edited by : Abhishek Jha)


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