Bitcoin Continues Its Plunge Amid Bearish Market Following Fears of Omicron Variant

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“It looks like somebody likely got hit with a margin call yesterday and thus was ‘forced’ to sell,” noted Matt Maley, equity strategist at Miller Tabak. “The Bitcoin market tends to be much more “thin” on the weekends, so that probably exacerbated the decline. Once the dust had settled, the buyer came back in and it stabilized.”

Nevertheless, the bearish stock market isn’t the only reason behind Bitcoin’s price plummet. In fact, the largest cryptocurrency globally has entered bear market territory on November 26. Bitcoin plunged to its seven-week low mark of $54,000.

“Whether it regains that level or not next week (once regular trading activity resumes) should be important to Bitcoin,” he said.

Bitcoin is currently trading almost 30% lower than its all-time high of $69,000. The digital currency reached the milestone in early November.

“Bitcoin is in ‘no man’s land right now and that does not seem to be changing anytime soon,” noted Ed Moya, senior market analyst at Oanda. “The long-term bullish case remains intact but prices seem poised to consolidate between $52,000 and $60,000,” he added.