Bitcoin’s price decreased considerably during the last week. It reached a low of $42,000, which was a full 27% below its opening price. However, bitcoin bounced back a bit after and managed to reach a close of $49,396. The bounce created a long lower wick, which is considered a sign of buying pressure. Furthermore, it validated the $44,275 area as support.
Bitcoin continues to remain volatile.
The leading cryptocurrency continues to remain a volatile asset. It witnessed a great run this year overall as it reached its all-time high of nearly $70,000. However, it stumbled to several lows frequently. Last weekend, the price of the original cryptocurrency plunged to as low as $42,000 for a while. However, it quickly jumped back to $47,000. Since then, it has been trading between $47-49k. At the time of writing, bitcoin is changing hands at just above $47,400 as per CoinMarketCap data. Other major altcoins were also in red over the weekend.
Bitcoin witnessed the worst crash since late September.
As reported earlier, Bitcoin witnessed its worst crash since late September when it dropped nearly 9% in an hour on Saturday. The crash came amid uncertainties caused by the Omicron variant of COVID-19 and the Federal Reserve’s (Fed) growing discomfort with high inflation. On Tuesday, Fed Chair Jerome Powell retired the word transitory from inflation discussion and said the central bank might consider. Some used this bitcoin fall as an opportunity to “buy the dip.” El Salvador President Nayib Bukele, whose country holds bitcoin on its balance sheet and has purchased coins during previous dips, announced another purchase of 150 BTC for around $48,700 each