Cryptocurrency investors were surprised on Friday 26 with a drop of more than 8% in the price of Bitcoin (BTC) that had been recovering its value and sought to break the resistance of the USD 60,000.
However, while Bitcoin spent almost the entire month of November struggling to stay above the USD 60,000, some cryptocurrencies exploded in value and, as the analyst noted Mike ermolaev, head of public relations for ChangeNOW, they made the month the “Moonvember”.
Ermolaev notes that the highlight of the month was the memecoins. However, neither Shiba Inu (SHIB), which has been the favorite cryptocurrency meme of Brazilian investors, nor Dogecoin (DOGE) were the most valued tokens of the month.
The highlight of November was Mars Space X (MPX), which made an impressive monthly profit of 1,447,841.08%. At the close of this edition, it was trading at USD 0.000007489, which represents an increase of 460% in one day. MPX is a cryptocurrency intended to provide a capital outflow for Elon Musk’s Project Mars.
The analyst also highlighted Dogebonk (DOBO), a Binance Smart Chain (BSC) token with deflationary properties and automatic income generation and that was the second best performing altcoin so far this month, recording a monthly gain of 11,823.12%.
Another point highlighted by the analyst was Coin To Fish (CTFT), that a gain of 9,131.47% was recorded. After CTFT, the next cryptocurrency on the experts list was Arbis Finance (ARBIS), scoring a profit of 4,112.74% in the last 30 days. At the time of writing, it is up 21.66% in the last 24 hours, to $ 0.0005518.
Ermolaev also highlights FarmerDoge (CROP), who has made incredible monthly gains, increasing 3,844.38% in the last 30 days. At the time of writing this article, CROP was trading at USD 0.008346, which represents a slight drop of 1.7% in the last 24 hours.
What about Bitcoin, where is the price of the main cryptocurrency going?
About the price of Bitcoin, Ermolaev, notes that the price drop has been leaving investors unsure about the depth of the correction, however, according to him, this is normal and the pullback in the value of BTC is healthy to score a new high.
“My advantageous position as head of public relations for a cryptocurrency exchange allows me to see the market from the inside and what is happening today is very similar to what has happened in the past. In my opinion, this is nothing more than a setback as Bitcoin picks up momentum before taking its next leap to new heights. “
However, the price of Bitcoin has fallen dramatically in recent weeks from the high of almost $ 69,000 it reached earlier this month, raising the question of why the previous correction took less time and was not as serious.
According to him, the fall in the price of the cryptocurrency can be attributed to several factors. Among them is the Securities Commission (SEC) rejection of a spot Bitcoin ETF, that would likely generate billions of dollars dumped into the cryptocurrency market.
Furthermore, China is tightening its grip on Bitcoin mining, saying it will consider “punitive electricity prices” for some cryptocurrency mining farms. as part of its next phase of repression.
In related news, the president of the United States, Joe Biden, signed a $ 1.2 trillion infrastructure bill last week, which includes provisions that could have tax implications for investors in crypto assets.
“Also, I think the increased selling pressure and the realization of profits are the other contributing factors. We are experiencing the natural cycle of cryptocurrencies. When assets hit record highs, people sell their assets. However, big sales they can cause the value to decline. Cryptocurrencies have also been affected by the strengthening of the dollar, which is always a negative factor, “he said.
Furthermore, the analyst points out that Ned Segal, Twitter’s CFO, also made negative comments about the cryptocurrency, which may have influenced the market. According to him, It is not advisable to invest money in Bitcoin or crypto assets.
“Therefore, it is not surprising that the Crypto Fear & Greed Index shows that market sentiment, which was neutral last week, is now in ‘fear’ territory with a reading of 32/100 at the time of write this article, “he notes.
There is no reason to be afraid
“However, there is no reason to be surprised by the volatility of Bitcoin, as it has been showing a constant appreciation over time,” he highlights.
Therefore, according to him, although we see some signs of recovery in the short term, it is too early to speak of a fully developed uptrend.
The analyst highlights that the average directional index (ADX), which measures the strength of the trend, is currently at 13.26, indicating a weak trend which, according to him, may indicate that the bulls are very tired and need some time to recover and consolidate.
“The next resistance level, in my opinion, is $ 60,000. When the price of BTC surpasses it, we can expect accelerated growth and new highs,” he said.
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