Bitcoin: buyers recouped most of the losses

Bitcoin: buyers recouped most of the losses

On Monday, December 6, at the end of the day, the BTCUSD pair increased by 2.12% to $50441. From a minimum of $42 thousand, the growth was 20%. On December 3 and 4, the price collapsed by 27%, and to return to $ 57,600, you need to rise by 37%. The capitalization of the crypto market increased by $ 457 billion, to $2.343 trillion. The demand for risky assets was partly provoked by hypotheses in the media that the new strain of Omicron is less dangerous than the delta variant.

On Tuesday, December 7, the bitcoin exchange rate exceeded $51,000.

Buyers continue to buy back the fall in the hope that the price will return to the highs of November. Bitcoin is a tough nut to crack, it won’t just give up. Large holders of bitcoins (from 100 to 10 thousand BTC) bought 67 thousand BTC during the collapse. Their purchases indicate that the bullish trend has not ended. The price was rising at low volumes, so before the opening of the American session, the BTCUSD pair dropped to 50800.

Buyers have won back more than 50% of losses, but they are still afraid of new sales. This week, the economic calendar is empty, so the focus is on crypto news, as well as news on Covid-19 and Friday’s US inflation report. Concerns about Omicron have eased in recent days as more evidence has emerged in South Africa indicating the relative softness of this option compared to previous Covid-19 variants.

The National Bank of China lowered reserve requirements. Such a move would free up 1.2 trillion yuan of long-term liquidity to support slowing economic growth. Risky assets reacted positively to the news.

The bond, gold and currency markets will be watching US consumer price inflation data this week to learn about any policy changes that the Fed may announce next Wednesday.

We have both negative factors for the cryptocurrency currency market and positive ones. This means that activity in all markets should be expected after the FOMC meeting. Buyers are set to raise the price to $56,000 per bitcoin. But we need volumes, which are not enough yet after the collapse last week. I believe that buyers will become more active if the price is fixed above $ 53800. The support is the level of $47 thousand.

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