Newsflash: Bitcoin Price Bounces to $4,120 after Plunging to Yearly Low

November 25, 2018 23:05 UTC

The bitcoin price sought to end the weekend on a high note, bouncing back past the $4,000 level after sinking to a new yearly low earlier in the day.

The flagship cryptocurrency had plunged as low as $3,456 on Coinbase, a move that came less than one day after BTC/USD fell below support at $4,000 for the first time in 2018.

BTC/USD | Coinbase

Declining to that mark catalyzed a moderate recovery, however, and a surge in buy volume immediately carried bitcoin back toward $3,900, providing it with the necessary footing to make the ascent back to $4,000, which it briefly accomplished shortly before 21:00 UTC. One hour later, BTC/USD set an intraday high at $4,120, though it has since slipped back to a present value of $3,989 as of the time of writing at 22:55 UTC.

The recovery brought bitcoin’s market cap back to $70 billion, representing a 24-hour increase of 3.26 percent. The majority of other large-cap cryptocurrencies have posted small gains as well, though ripple (XRP) and bitcoin cash each remain in the red. The index’s top performer is seventh-ranked litecoin, which is up 5.18 percent for the day to $30.73.

It remains to be seen whether this is the beginning of a true recovery or just another dead cat bounce. As CCN reported, a significant portion of the recent selling has been attributed to crypto investors who purchased BTC in early 2017 when it was trading near $1,000. Taking that into consideration, Genesis Trading CEO Michael Moro said that he expects the bitcoin price to bottom around $3,000, meaning that the market could have another 25 percent drop on the horizon.

Click here for a real-time bitcoin price chart.

Featured Image from Shutterstock. Charts from TradingView.

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@Y3llowb1ackbird

Josiah is the US Editor at CCN, where he focuses on financial markets. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.