By Samuel Indyk
Investing.com – The price of Bitcoin recovered on Sunday and Monday following the declines seen during the previous week after the discovery of the Omicron variant caused a sell-off in riskier assets.
Bitcoin had dropped below $53,500 on Sunday but has since recovered to a high above $58,200 on Monday morning. At 12:03GMT, Bitcoin is trading just below $57,000.
There was no immediate news for the jump higher other than the broad positive risk tone that has gripped markets on Monday as traders reassess the risks from the Omicron COVID variant.
Fear had taken hold on Friday that the numerous mutations in the newly discovered variant could make it more resistant to vaccines and dramatically slow down the economic recovery. However, as more data emerges, the ultimate doomsday scenario of more global lockdowns and a halt to economic activity appears unlikely.
Early indications from South African health experts have suggested that symptoms from the new variant appear mild, while others have suggested that the current vaccine will provide some protection from severe illness.
Meanwhile, Moderna (NASDAQ:MRNA) has indicated it could roll out a vaccine to combat Omicron by early next year.
Altcoins
Other major cryptocurrencies were showing similar price action. Coins linked to decentralised finance (DeFi) – such as Ethereum, Solana, and Cardano – were all trading higher by between 3% and 5% in the last 24 hours.
All the coins in the top 30 by market cap were trading higher in the last 24 hours, apart from Elrond which is down by 3.8%.
Elrond had hit an all-time high above $542 on Tuesday last week but it has now dropped below $400. Nevertheless, the cryptocurrency is still up by around 50% in the month of November.
Technical Picture
From a graphical point of view, $60,000 remains a key level to the upside. If Bitcoin moves above that level then the 50-day moving average around $60,800 could act as further resistance.
To the downside, $55,000 remains key before the 100-day moving average near $54,180 could act as support.
A continued break below that level could open the door to $52,500 before an approach to the psychological $50,000 level.