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The Calm After The Storm: Bitcoin At $17K As DeFi Rebounds

Summary:
Bitcoin has recovered a bit since yesterday’s massive price drop to ,250. Most alternative coins have also bounced off their most significant dips, and the total market capitalization has recovered over billion in a day.Bitcoin’s Black Friday SaleFollowing 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 ,500 down to ,250 in a matter of hours. In other words, BTC lost over ,000 in less than a day.Although the cryptocurrency has bounced off the intraday low and has reclaimed ,000, it’s still over ,000 below the 2020 high.The possible reasons behind this massive nosedive are still unclear, despite numerous speculations. However, some community

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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.

btcusd_chart

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.

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

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.

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