Just as Bitcoin began to show early signs of recovery, fear of a new variant of COVID-19 sent global stocks sharply lower, causing the crypto market to decline.

Although the near-term price action appears bearish, the overall trend in fundamental and on-chain data remains positive, indicating that the bull market is likely to continue. Bitcoin has tested a critical uptrend support line near $54K, entering a critical technical support zone.

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Near-term technicals remain cautious, particularly in light of the stock market’s recent decline. It is possible that the stock market is entering a short-term period of correction, which will also have an impact on BTC. The major support is currently between $53K and $50K – a critical zone that the bulls must defend.

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The 4-hour chart is showing early signs of a bullish divergence, which is a positive short-term development. However, it is still too soon to declare a bottom because we must wait and see how stocks perform over the next week. Ideally, the cryptocurrency would hold the support line, which would be a positive signal for BTC bulls because this trend line connects the July lows to the September lows.

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With the stock market’s near-term outlook uncertain and the risk of further long liquidations, investors should be prepared for wicks as low as $53K to $50K. Regardless of further downside, this pullback remains an appealing buying opportunity for long-term holders (LTHs) because nothing fundamentally has changed in BTC. This is primarily a rout in the midst of a bull market, with the price expected to rise once the bottom has been reached and certainty has returned.

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The Bitcoin fear and greed index on Monday, November 29, 2021, went from the fear level of 27 to the level of 33 as per the alternative. me. The Fear and Greed index is a technique for assessing investors’ emotions toward the market.

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Bitcoin is currently trading around $57,569.25, up 5.59%. In the last 24 hours, the highest it touched was $57,793.31 and the lowest was $53,576.74. Bitcoin has a current market cap of $1,087,849,821,113. It has a circulating supply of 18,886,056.00 BTC coins and a maximum supply of 21,000,000 coins.

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El Salvador buys 100 more Bitcoins as the crypto market falls

The government of El Salvador bought 100 more bitcoin, President Bukele tweeted on Friday, while the price of the largest cryptocurrency by market cap fell to near $54,000. “El Salvador just bought the dip. 100 extra coins acquired with a discount,” Bukele said. Bitcoin price fell about 8% on Friday around $54,237, as broader markets tumble on new COVID-19 variant fear. Bitcoin officially became legal tender in El Salvador in September, three months after the country’s legislature passed the Bitcoin Law. On Nov. 20, Bukele said that the country is going to build an entire city based on bitcoin, during a presentation at Bitcoin Week in El Salvador.

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IPL bars teams from crypto partnerships

Indian Premier League (IPL), the richest cricket league in the world has barred IPL franchises from associating with crypto companies. The Board of Control for Cricket in India (BCCI) has issued a directive to all IPL teams barring them from signing any sponsorship deals with crypto exchanges. According to a report in ET, two IPL teams have already scrapped their deals with crypto companies and called it a major loss.

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Cryptocurrency exchange coinstore enters India despite fear of ban on digital currencies

Singapore-based virtual currency exchange Coinstore has begun operations in India at a time when the Indian government is preparing legislation to effectively bar most private cryptocurrencies. Coinstore has launched its Web and app platform and plans branches in Bangalore, New Delhi, and Mumbai which will act as its base in India for future expansion, its management said. “With nearly a quarter of our total active users coming from India, it made sense for us to expand into the market,” Charles Tan, head of marketing at Coinstore told Reuters. Asked why Coinstore was launching India despite the pending clampdown on cryptocurrencies, Tan said: “There have been policy flip-flops but we hope things are going to be positive and we are optimistic that the Indian government will come out with a healthy framework for cryptocurrencies.”

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