The price of BTC fell 12% below the level of 53,000 euros, 16% less than its all-time high. However, according to Alejandro Zala, Country Manager at Bitpanda Spain, this sudden drop did not change the overall picture.
Zala stated that the market is still bullish, and explained that it is observed how BTC is trading in a range in which it draws candles of higher lows and highs.
“The latest drop took around € 300 billion from the total market capitalization. BTC ranks first with a capitalization close to 0.9 trillion euros. Emotions and feelings are driving the market right now and the Cryptocurrency Fear and Greed Index fell 22 points to 52/100, marking the neutral level, “said Zala.
“A week ago, this number was at a level of extreme greed, a typical first indicator of an overheated market. The drop appears to be related to the excessive leverage of the system part of which it has exited. In any case, the fundamentals did not change, which suggests that the medium-term outlook remains bullish, ”he added.
Bitcoin’s long-awaited Taproot update, which is said to be the cryptocurrency’s biggest update in four years, went live when the blockchain hit block 709,623 at 5:15 UTC on Sunday.
Taproot is expected to address the issue of user privacy as both regular and multisig transactions would look the same. It would also improve the scalability of the network and the exchange of Bitcoins.
ETH fell below 4,000 euros, but fundamentals remain solid
ETH fell back from its previous all-time high of € 4,200 and even fell below the long-term trend line that had been holding since October. The price traded at 3,600 euros, its lowest since the beginning of the month.
According to Zala, the high wicks on the daily charts suggest that the bulls are trying to support the price at these levels.
“Despite this loss of momentum, the situation is not very worrying for the ETH bulls, as the fundamentals are showing positive signs. Some 8 billion euros worth of Ethereum has been withdrawn in recent days, suggesting that the whales could be hoarding and storing ETH with no intention of selling in a short period of time. The withdrawal of tokens is usually a bullish signal and vice versa. In addition, ConsenSys, the Ethereum software company behind MetaMask, announced a € 140 million funding round when their wallet reached 21 million monthly users, ”he added.
TRON trades with large differences between highs and lows
Zala also touched upon TRON and said that it has been one of the best performing crypto assets in November so far, gaining 25%.
“The price is above 0.1 euros, its maximum in two months. The price reached almost 0.13 euros in an extremely volatile day in which the price moved 20% intraday ”, he specified.
“Most of the major altcoins are trying to stay above their immediate resistance levels, a sign that the bulls could be buying on every drop. The recent sudden decline left some scars on traders and they need some time to adjust to the new price levels. However, fundamentals remain strong and November remains bullish, ”he concluded.
(Clarification: This material is intended to be a comment on economic or market conditions and does not constitute a financial analysis or recommendation. The analysis presented here corresponds to Bitpanda’s Country Manager in Spain and under no circumstances is it an investment recommendation from Cointelegraph. Anyone, before investing, should conduct their own research and is responsible for their own decisions).
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