Bitcoin holds regular beneath $ 50,000 in risky weekend buying and selling
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Bitcoin prices rebounded on Sunday but remained below $ 50,000, with volatility continuing a weekend of wild trading with cryptocurrency plummeting more than 17% in just 24 hours.
According to data from Coin Metrics, the cryptocurrency traded at $ 49,250 on Sunday at around 12:50 p.m. on Wall Street.
Earlier in the day, cryptocurrency slipped more than 2% as cryptocurrency struggled to recapture the $ 50,000 mark. On Saturday, prices fell to a low of around $ 43,000 compared to $ 57,000 trading on Friday morning.
Bitcoin’s sharp slump follows Friday’s risk-off tone in the broader market. All three major averages ended trading in the red on Friday, posting losses for the week on fears of what the omicron Covid variant will mean for the ongoing economic recovery.
Investors pulled stocks in favor of safer areas of the market, with 10-year US Treasury yields falling.
The Nasdaq Composite trailed the Dow and S&P 500 on Friday, with technology stocks being hit particularly hard. This sale extended to cryptocurrencies without a major reason for the sharp declines in the entire crypto universe.
“It looks like someone was probably hit by a margin call yesterday and was therefore ‘forced’ to sell,” noted Matt Maley, equity strategist at Miller Tabak. “The bitcoin market tends to be much ‘thinner’ on the weekends, which likely compounded the decline. After the dust settled, the buyer came back and it stabilized.”
Still, sales over the past 48 hours have built on recent declines in Bitcoin. The cryptocurrency officially entered bearish territory on November 26th after falling to a then seven-week low of around $ 54,000.
Maley added that it is noteworthy where Bitcoin stabilized below the $ 50,000 level on Sunday as it is below the trend line of the July lows.
“Whether or not it gets back to that level next week (once regular trading activity resumes) should be important to Bitcoin,” he said.
Bitcoin is now nearly 30% below its all-time high of nearly $ 69,000 that it hit in early November.
“Bitcoin is currently in ‘no man’s land’ and that doesn’t seem to be changing anytime soon,” noted Ed Moya, senior market analyst at Oanda. “The long-term bullish fall remains intact, but prices appear to be consolidating between $ 52,000 and $ 60,000,” he added.
Ether also stabilized on Sunday, rising about 1.5% to $ 4,176. On Saturday, the cryptocurrency hit a low near USD 3,500 after falling more than 16% between Friday and Saturday morning. Ether is the second largest cryptocurrency in the world by market value.
– CNBC’s Weizhen Tan and Tanaya Macheel contributed to the coverage.