The Calm After The Storm: Bitcoin At $17K As DeFi Rebounds
Bitcoin has recovered a bit since yesterday’s massive price drop to $16,250. Most alternative coins have also bounced off their most significant dips, and the total market capitalization has recovered over $30 billion in a day.
Bitcoin’s Black Friday Sale
Following weeks of gradual increases that led to BTC coming less than 3% away from its 2017 all-time high, the primary cryptocurrency plummeted yesterday.
Bitcoin went from a high of $19,500 down to $16,250 in a matter of hours. In other words, BTC lost over $3,000 in less than a day.
Although the cryptocurrency has bounced off the intraday low and has reclaimed $17,000, it’s still over $2,000 below the 2020 high.
The possible reasons behind this massive nosedive are still unclear, despite numerous speculations. However, some community members, like Mati Greenspan, believe that such a correction is healthy at this stage.
Others, like Max Keiser, comically said that this is Bitcoin’s Black Friday sale allowing those who have missed out to get in.
From a technical perspective, Bitcoin has to overcome the resistance lines at $17,430, $17,620, and $18,200 to resume its bull run. Alternatively, $16,600, $15,900, and $15,400 are the most significant support levels in case of another pullback.
Altcoins Take A Breather
Most alternative coins had marked impressive gains in the past few weeks as well. However, yesterday’s crash affected them even more than BTC with numerous double-digit price slumps.
Although most are still in the red on a 24-hour scale, they have also bounced off the daily lows. Ethereum dipped to $485, but it has returned to $525. Ripple bottomed at $0,45 and now sits at $0.55.
Bitcoin Cash (-6%), Binance Coin (-4%), Chainlink (-2.5%), and Litecoin (-7.5%) are still well in the red in the past 24 hours, despite recovering some losses. Cardano is the only top ten coins with gain after a 2% increase.
SushiSwap leads the recovery session with a 30% surge to $1.37. Aave (18%), Yearn.Finance (17%), Kusama (14%), Reserve Rights (12%), and Synthetix (10%) follow.
Meanwhile, plenty of DeFi coins such as Sushi, Aave’s LEND, Yearn Finance, and so forth, are charting double-digit recovery gains today as well.
