Omicron fear fuels Bitcoin uncertainty as price continues to plunge

Omicron fear fuels Bitcoin uncertainty as price continues to plunge
Image Credit: Crypto Demystified

Key Takeaways:

  • Bitcoin price and stock price continues to fall with rising cases of Omicron variant.
  • Analyst Willy Woo predicts that no retail sell off would lead to price crash.
  • Bitcoin Fear and Greed index shows extreme fear feeling among investors.

Nigeria(CoinChapter): Are we going to see another serial plunge in the price of Bitcoin similar to when it dropped to $3,500 back in 2020 in the heat of the Covid-19 pandemic?

Uncertainty continues to grow about the price of the number one cryptocurrency over the new Covid-19 variant (Omicron) as Bitcoin price squabbles around $46,000.

Days back, the primary cryptocurrency seemed significantly more bullish when it neared $50,000 following a US Fed statement in regards to the inflation rates.

However, it couldn’t surpass that level and started to lose value gradually. It dropped below $46,000 in the following days as reported but quickly surged to $48,000.

At press time, the bears continue to have a strong grip on the market. Bitcoin trades at $46,300. However, hours back, it had dipped to $45,000.

Bitcoin price chart
Bitcoin price chart as it continues to plunge over the past days. Source: TradingView.com

Bitcoin price has tested the lower Bollinger band on an 18-hour time frame. A Bollinger band squeeze has been forming in the lower time frame an indication of a bullish divergence forming on the 18-hour chart.

Bitcoin, Omicron fear fuels Bitcoin uncertainty as price continues to plunge
Bitcoin 18 hour price chart with Bollinger band. Source: TradingView.com

Omicron: Like Bitcoin like stock prices

The Omicron variant is having its effect on the stock market similarly, with the market opening all red this week. Most stock indexes lost value last week on fears for the new variant of the COVID-19 pandemic and US politics.
According to Bloomberg experts, concern over Omicron and a pending lockdown have made volatility higher and investors very jittery.

Bitcoin price not crashing – Crypto Analyst Willy Woo

Crypto analyst Willy Woo has said that a retail sell-off cannot trigger Bitcoin price to crash in the market.

He said this on Monday while debating the odds of the marketing sliding down freely. Willy Woo analyses the situation with Peter Brandt.

Brandt held that volume spikes that lead to price crashes are absent so far in December and says because of that, market sell-off is yet to occur.

Woo, responded stating that derivatives traders have been featured in the cascade to $41,800 earlier in the month and retail investors are holding on to their Bitcoin. With that, he states that volume data from Coinbase or other retail platforms are not a suitable indicator for an impending dip in price.

It is worth noting that BTC Fear and Greed index shows Extreme Fear feeling among investors, with the analytics resource Santiment outlining another worrying sign. As Bitcoin has remained below $50,000 for a week, the company saw the “most negative trader commentary since early October.”

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Bitcoin, Omicron fear fuels Bitcoin uncertainty as price continues to plunge

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