We were so close to a crypto breakout, but now is a ‘buy down’ time, Bitcoin analysts say

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Sunday, November 28, 2021 10:51 PM

The Omicron variant of Covid-19 may have scared the markets, but financial experts suggest that the current swing in the value of cryptocurrencies could be an opportunity to ‘buy down’.

Bitcoin came close to climbing and leaping over $ 60,000 once again, with the possibility of a breakout to beat recent all-time highs, but alarming news of a disturbing new variant of Covid has caused tremors in the world’s financial foundations.

The cryptocurrency had led the way last week as prices rose from Wednesday’s slump that saw Bitcoin wallowing in a $ 55,000 quagmire, after profiting from a value of over $ 10,000 that didn’t was only a week ago.

From what had seemed like a sticky position, prices across the board had started to rise just as news began to fall on what is now known as the “Omicron Variant”. The fiat and crypto markets took the narrative harshly as the red candles drove the values ​​of just about everything that investors dearly hold in a steep southerly direction.

However, keeping an eye out for some potential silver liners from the growing shadows of these dark financial clouds, some experts have pointed out the possibility that this could be a very good opportunity for cryptocurrency investors.

Martha Reyes – Head of Research at Digital Asset Prime Brokerage and ExchangeBEQUANT, believes that any escalation of precautionary measures with the new variant, while unwanted, could be seen as helpful to the value of the cryptocurrency.

BTC and ETH were ready for a breakout as Americans sat down for their Thanksgiving meal, ”she explained.

However, the announcement of a new variant of Covid from South Africa resulted in a massive sell-off across all asset classes. Low liquidity and $ 3 billion in BTC option expiries with a point maximum pain at 58,000 added to volatility.

“$ 53,000 is a big support for BTC because that’s where the short-term cost base is. It wasn’t until the start of the week that bond yields rose as we anticipated rate hikes on stronger growth and inflation. If lockdowns ensue, which is not our baseline scenario, it will lead to more helicopter money, which will ultimately benefit digital assets.

His views were echoed by Ruud Feltkamp, ​​CEO of cloud-based automated crypto trading botCryptohopper, who believes the current market situation is a buy time.

On the flip side, inflation is skyrocketing and people are looking for more alternatives for their money in the bank – I don’t think it will be long before investors see this as a ‘good buy’ time. market, ”he said.

“We are still in the middle of the bull cycle, and I believe that rising inflation will cause more money for stocks and crypto to increase.”

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