Is This a Buying Opportunity or Beginning of Bear Market. Bitcoin price action steadies after losing almost $6,000 on Nov. 26 as winners and losers from the coronavirus-‘Nu’-variant scare emerge.
Market Update
Bitcoin (BTC) stemmed some of its losses as Wall Street opened on Nov. 26 after concern over a new COVID-19 variant spark a global market sell-off.
Pfizer profits as panic over coronavirus sets in
Cointelegraph Markets Pro and TradingView data showed that BTC/USD ended its downturn just above $53,500 on Bitstamp.
As some sense of equilibrium returned, the pair added nearly $1,500, and traded at $54,400 at time of writing.
Due to the proliferation of COVID-19 variants, “Nu,” both crypto and traditional assets were shaken on the day. Some parties claim that this could pose a threat to vaccine programs.
Pfizer, a major producer of COVID-19 vaccinations, resisted the market downtrend and was up 7% at Wall Street open. The S&P 500, however, was down 1.5%.
In what will be familiar to those who witnessed the events of March 2020, Bitcoin thus abandoned its asymmetrical investment traits to fall in line with both equities and the U.S. dollar.
The drop below $54,000 was accompanied by a familiar cocktail of misgivings from sources, including mainstream media outlets, with CNBC joining Bloomberg in claiming that Bitcoin had “entered bear market territory.”
“Let’s see how the Daily candle closes,” trader and analyst Rekt Capital said in cautious words about the impact of the day‐s moves on Bitcoin’s longer-term outlook.
#BTC revisits the black diagonal resistance and rejects there
On the rejection, $BTC has returned to the bottom of the wedging structure
Daily Close below the bottom trendline would confirm the breakdown
Let’s see how the Daily candle closes#Crypto #Bitcoin pic.twitter.com/xnEroEYfEj
— Rekt Capital (@rektcapital) November 26, 2021
BTC transaction volume hits all-time high
Among crypto analysts and other longtime participants, however, there were still few signs of genuine bearishness.
Related: Bitcoin offers ‘Black Friday deal’ with sub-$55K BTC price — Just like 2020
“Massive corrections = massive buy opportunities,” Cointelegraph contributor Michaël van de Poppe summarized.
We still at +$50K. Really tho. Why are you so hurt?
— Looposhi (@22loops) November 26, 2021
While the lows of Nov. 26 have not been seen since mid-October, overall, Bitcoin’s performance in Q4 remains not only profitable but fully in line with previous bull market years.
Amid the panic over spot price, meanwhile, data showed that Nov. 25 marked the day with the largest single on-chain transaction volume in Bitcoin’s history.
“Bitcoin set another all-time high for transaction volume yesterday with $36.5 billion of value settled on-chain,” researcher Kevin Rooke commented.
