Bitcoin dropped in value once again earlier today. The largest digital currency by market capitalization went below $54k earlier in the day before a half hearted recovery later on. However, this price increase is being termed as a Black Friday sale in the crypto world as it allows you to buy BTC at much cheaper price compared to just weeks ago, almost 30% cheaper. While regular Black Friday sales often top this figure, most of the items available are around this figure if you filter out the scams and manipulative price reporting. So, this is being termed as an attractive price for more buying activity.
Bitcoin’s drop below $54k brought it closer to the $1 trillion total valuation once more. But, the bulls fought back and the crucial market cap support stayed in place. While some investors who got late into the market are worried and thinking about selling, more seasoned investors and HODLers believe this is a great opportunity to buy before another bullish move occurs.
According to this analyst:
#BTC Black Friday deal pic.twitter.com/TqTcQEzfqG
— Material Scientist (@Mtrl_Scientist) November 26, 2021
There was also plenty of confusion in the markets around the world, especially with the discovery of the new covid variant that is looking very menacing. Here is what happened today:
Dollar down, gold up, Bitcoin down, stocks down.
Good luck solving that correlation today.
— The Wolf Of All Streets (@scottmelker) November 26, 2021
However, if you look at Black Friday 2020, almost the same pattern was exhibited. The price drop occurred back in 2020 as well before the cryptocurrency proceeded to new all time highs. The cryptocurrency was looking all set to beat previous all time high at around $20k late in November but soon, the short-term bears came into play. They forced the index back to $16.4k during this time which demoralized bulls for a short period of time. But, within days afterwards, Bitcoin took a giant leap forwards and went above $20k, eventually moving to as high as $69k less than a year after it.
Other historical instances also show that Black Friday themed sales have been popular over the years as the crypto sector takes a respite as merchandise sales force some liquidations. However, keeping in mind that the funding rate is still relatively high, long-term HODLers are are record levels, RSI is in oversold territory and Bitcoin greed index is low as well, Bitcoin may yet rise strongly once again and prove its short-term doubters wrong again.
Image Source: pixabay.com
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