After Saturday Free Fall Bitcoin Price Starts Stable On Sunday

After a free fall, the price of Bitcoin has stabilized again. (photo credit: pixabay)

JAKARTA – After having fallen on Saturday, December 4, Bitcoin prices rebounded on Sunday, December 56. However, the price still remains below $50,000, with volatility continuing to trade wildly last weekend, causing the cryptocurrency to fall more than 17% in just 24 hours.

The cryptocurrency was trading at 48,776 US dollars around 7:45 pm. ET (7:45 a.m. EDT) Sunday on Wall Street, according to data from Coin Metrics.

In this price range, the government of El Salvador, through President Nayib Bukele, bought 150 coins on Saturday, December 4.

Earlier in the day the cryptocurrency was down more than 2% as it struggled to regain the US$50,000 mark. On Saturday alone the price of bitcoin had dropped to a low of around 43,000 US dollars, from the price of 57,000 US dollars traded on Friday morning.

Bitcoin's sharp decline follows Friday's risk-off tone in the broader market. All three major averages finished Friday's trading in the red and posted losses for the week on concerns about what the Covid omicron variant could mean for the ongoing economic recovery.

Investors dumped equities in favor of a safer area of the market, with yields on the 10-year US Treasury moving lower.

The Nasdaq Composite outperformed the Dow and S&P 500 on Friday, with technology stocks being hit particularly hard. These sales extend to cryptocurrencies, which for no real reason have driven a sharp decline across the crypto world.

"It looks like someone may have been hit by a margin call yesterday and thus 'forced' to sell," said Matt Maley, equity strategist at Miller Tabak. “Bitcoin markets tend to be much “slim” on the weekends, so that might exacerbate their decline. Once the dust settles, the buyer re-enters and stabilizes. ”

However, the selling over the last 48 hours is based on bitcoin's recent decline. The cryptocurrency officially entered money market territory on November 26, after dropping to a seven-week low of around US$54,000.

Maley added that while bitcoin was steady on Sunday despite being below the $50,000 level, it's especially important given that it's below the trend line from last July's lows.

“Whether or not it can regain that level next week (after regular trading activity resumes) should be important for Bitcoin,” he said, as quoted by CNBC.com.

Bitcoin is now nearly 30% below its all-time high of near 69,000, which it hit in early November.

“Bitcoin is now in 'no man's land' and that is unlikely to change any time soon,” said Ed Moya, senior market analyst at Oanda. “The long-term bullish case remains intact but the price seems poised to consolidate between 52,000 and 60,000,” he added.

Ether was also steady on Sunday, up about 1.5% to 4,176 dollars. On Saturday the cryptocurrency hit a low near $3,500, after falling more than 16% between Friday and Saturday morning. Ether is the second largest cryptocurrency in the world by market value.