The price of Bitcoin is experiencing a mild recovery after losing a shocking 30 percent in value during the month of November.
Bitcoin is up 10 percent this week following two days or significant growth from a low of $6,600 to current levels above $7,700. This means the leading crypto asset is still down by over 17 percent this month but up by 94 percent this year.
Some analysts see this move as an indication that the current correction is over, particularly since BTC/USD has crossed over the 200-day moving average in the 4-hour chart.
However, $7,800 is a key resistance level that has provided support in the past and will be difficult to break, so we’ll need to see a clear move above that before we can start getting bullish. In the long-term, the trend still remains somewhat bearish and the BTC price could easily retrace below $7,000 again in the coming weeks.
Crypto exchange hacks
The crypto market recovery comes despite two high-profile hacks recently and a possible exit scam. A few days ago the crypto exchange Upbit lost 342,000 ETH tokens (approx $50 million worth) due to a hot wallet hack. The Korean firm has promised its users that all funds will be covered but the loss could still have negative effects on the overall market.
Over the past week, the crypto exchange IDAX has been experiencing some issues with withdrawals and deposits, raising suspicion amongst users. Today it has finally admitted that it’s CEO has gone missing, along with the keys to the IDAX cold wallet holding almost all its assets. The news has raised questions of a possible exit scam and paints stark similarities to the QuadrigaCX scandal that occurred earlier this year.
History Repeating Itself?
Last year Bitcoin followed a similar pattern, falling sharply from above $6,000 to around $4,000 in mid-November in the run-up to Black Friday. It eventually entered the new year just slightly above $3,000 and took months before fully recovering and regaining the $6,000 level.
The market is considerably different this year though, having experienced significantly more volatility and volume recently. Rather than see the slow and boring sideways trading we did last December, we more likely in for a wild ride with some heavy fluctuations in the run-up to year-end.
In other markets, Cosmos (ATOM) and Cardano (ADA) are two of the biggest winners of the day, up 9 percent and 7 percent respectively. Most other assets are also trading in the green with two to three percent gains, with only Vechain (VET) and Decred (DCR) experiencing minor losses of one to two percent.