The recent sudden drop costs $ 300 billion of total market capitalization

The price of BTC fell 12% below the € 53,000 mark, 16% less than its all-time high. However, according to Alejandro Zala, Country Manager at Bitpanda España, that sudden drop didn’t change the bigger picture.

Zala stated that the market was still bullish and said that it was watching BTC trading in a range drawing candles with higher lows and highs.

The recent sudden drop costs $ 300 billion of total market capitalization
The recent sudden drop costs $ 300 billion of total market capitalization

The most recent crash cost around 300 billion euros in total market capitalization. BTC comes first with a capitalization of just under 0.9 trillion euros. Emotions and sentiments are driving the market at the moment and the cryptocurrency fear and greed index fell 22 points to 52/100, which marks the neutral level, “said Zala.

“A week ago that number was at an extreme level of greed, a typical leading indicator of an overheated market. The decline appears to be related to the excessive leverage of the system from which it emerged. In any case, the fundamentals haven’t changed, suggesting the medium-term outlook remains bullish, “he added.

Bitcoin’s long-awaited taproot update, which is reportedly the largest update to the cryptocurrency in four years, went live when the blockchain hit block 709,623 at 5:15 UTC on Sunday.

Taproot is expected to address user privacy issues as both regular and multisig transactions would look the same. It would also improve the scalability of the network and the exchange of bitcoins.

ETH fell below € 4,000 but fundamentals remain strong

ETH fell back from its previous all-time high of € 4,200 and even fell below the long-term trend line that had been in place since October. The price was quoted at 3,600 euros, its lowest level since the beginning of the month.

Zala said the high wicks on the daily charts suggest that the bulls are trying to prop the price at these levels.

“Despite this loss of momentum, the situation for the ETH bulls is not very worrying as the fundamentals are showing positive signals. Around € 8 billion worth of Ethereum has been pulled in the past few days, suggesting the whales could hoard and store ETH with no intention of selling it anytime soon. Withdrawal of tokens is usually a bullish sign and vice versa. In addition, ConsenSys, the Ethereum software company behind MetaMask, announced a € 140 million funding round when its wallet reached 21 million monthly users, ”he added.

TRON trades with big differences between highs and lows.

Zala also went into TRON, saying it was one of the top performing crypto assets in November, growing 25%.

The price is over 0.1 euros, the highest in two months. The price hit almost EUR 0.13 on an extremely volatile day with the price moving 20% ​​intraday, ”he explained.

Most of the big altcoins are trying to hold above their immediate resistance levels, a sign that the bulls might buy on any decline. The recent sudden drop has left some scars on traders and it will take them some time to adjust to the new price levels. However, fundamentals remain strong and November remains bullish, ”he concluded.

(Clarification: This material is intended as a commentary on economic or market conditions and does not constitute a financial analysis or a recommendation. The analysis presented here corresponds to the Country Manager of Bitpanda in Spain and is under no circumstances a recommendation by Cointelegraph Investment Policy: Everyone must do a Investment conducts its own research and is responsible for its own decisions).

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