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After a week of languishing in the mid $40,000s range, Bitcoin prices rose to around $50,000 on Sunday evening.
Over the weekend, trading volume on major centralized exchanges remained modest, significantly below the high level seen a week before.
Bitcoin fell to as low as $42,333 on December 4 and the low trading volume, indicating that the price rebound could be short-lived.
What you should know
- At the time of writing this article, Binance trading volume was down -19.32% in the past 24 hours. Coinbase and FTX were also down -14% and 34% relatively.
- Bitcoin price is trading at $50,163 at the time of writing this article. Prices for alternative cryptocurrencies also rose – Etherurum rose to trade at $4,137 .
- The rally came just two days after the S&P 500 finished near its all-time high on Friday. According to CNBC, the US stock market surged on Friday after the Labor Department’s inflation data was not as high as many investors had expected.
- Some were surprised by Bitcoin’s flash crash last weekend, which occurred in part due to high leverage trading: $1.79 billion in Bitcoin was liquidated in under an hour, sending its value down to around $47,000 on Friday.
What experts are saying
When comparing Bitcoin’s price structure to that of 2020, Bitcoin analyst CryptoValerio notices a pattern in the cryptocurrency’s recent volatility. His graph depicts how Bitcoin’s price pattern generates higher lows and higher highs before a significant price increase, such as the one seen at the end of last year.
He stated on Twitter, “You’ll understand how emotions influence the majority of the investor’s decision making when trading. ‘Cause this leads to same patterns and market structures reoccurring over and over again. This allows us to compare them and take conclusions on how probable they are to reoccur,”
In case you missed it
Bitcoin mining has entirely recovered since China’s crypto crackdown earlier this year, which effectively shut down more than half of the world’s miners overnight, according to Nairametrics.
In addition, South Africa’s financial regulator wants to establish a cryptocurrency regulatory framework to protect individuals from losing their monies as a result of cryptocurrency frauds.
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