The global stock markets have already priced in the false concerns about the new virus strain that was expected to stop the global economic recovery. However, the new coronavirus variant has influenced the crypto market.
In fact, the news has led to both positive and negative results. Thus, retail investors started selling off their coins. According to Glassnode, on November 25-26, the daily volume of coins in circulation exceeded 200 thousand. Notably, the volume of coins in circulation was rising during the whole correctional process. However, at the end of the previous week, the indicator surged, pointing to an unexpected sell-off caused by the coronavirus.
At the same time, crypto whales benefited from the situation. The fact is that the local sell-off was supported by the news about Omicron. As a result, small traders decided to leave the market and sell their coins. This,in turn, allowed big players to purchase a larger number of coins, thus boosting BTC.
Thus, the market reaction to the news was mixed. On the one hand, small investors left the market, positively affecting the market situation. On the other hand, a sharp inflow of coins intensified the price pressure. As a result, BTC needs more time to recover. However, the expected bullish trend should be really strong.
Bitcoin stagnated near the level of $58.7K, where earlier, an important support level was located. Besides, the 0.382 Fibonacci level is located there. The price has already formed two bullish bars, but the second bar has a shadow on its top. This proves that the price failed to break the 0.382 Fibonacci level. However, the consolidation phase may end soon, thus pushing the price higher. In addition, technical indicators are also moving towards the bullish zones. The price tested the level of $58.7K just twice in the last two days. That is why BTC is likely to remain near the 0.382 Fibonacci level. If bitcoin breaks the mentioned level, it may climb to $60K, an important psychological level. In case of an impulsive movement, the price may jump to $60.5K- $62K. If the price breaks $62.5K, the 0.326 Fibonacci level, a bullish trend will start. Until BTC is below the mentioned level, it may slide to $52K-$53K.
