Bitcoin's daily lows continue to drain gains, but $55,500 holds
By Noemi Jansana / Alejandra Zamora
Date: Wednesday 24 Nov 2021
(Sharecast News) - Bitcoin maintains its consolidative tone it´s had during this week on Wednesday, after last week's sharp volatility and correction of around 19% from recent highs at $69,000. The short-term range that the cryptocurrency queen has embarked on, keeps the $55,500 support intact, despite the daily lows of the past two sessions still trickling lower, according to 'CoinMarketCap'.
"After breaking key support at $58,000, it has found fresh support around $55,500, which could offer some encouragement," commented Craig Erlam, analyst at Oanda. However, "only a move back above $60,000 really puts us back into bullish territory," the expert added.
As for the 'altcoins', Ethereum seems to be in the mood to rally after its recent correction, of around 8% from its November 10th high. It´s generally recovered to above its seven-day lows.
Because of this, the Bitcoin dominance chart, which shows the degree of the cryptocurrency's dominance over the rest of the market, continued to signal a bias towards exposure to altcoins, according to 'CoinMarketCap', dropping to about 41.6% from October's high of 47.5%. All in all, the market is mixed and total capitalization remains at $2.57 trillion.
Analysts expect trading volumes to be lower this week due to the U.S. Thanksgiving holiday on Thursday. "Over the past three years we have had downside volatility every time this holiday approaches; it could be due to month-end rotations, options/futures expirations and rebalancing," CryptoQuant stated in a blog post reported by 'CoinDesk'.
The Bitcoin Fear and Greed Index is at its lowest level since late September, which preceded a recovery in the price of the cryptoasset. The index suggests that market participants are in "fear" mode. Some analysts see this as a counter-signal as buyers gradually return to the market.
"Typically, in bull markets, the index indicates 'greed' or 'extreme greed' for longer periods, with periodic brief visits to the 'fear' zone, as we have seen this spring," Arcane Research wrote in a report on Tuesday.
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