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Bitcoin adds more than $600 following weekend's sharp sell-off

  • Bitcoin's highly-volatile price action continues on Monday.
  • After losing more than $2000 in the last four days, the BTC/USD gains traction.

The BTC/USD pair staged a robust recovery on Monday as investors saw the recent drop as an opportunity for bargain-shopping and refreshed its two-day high at $6680. As of writing, the pair was trading at $6350, gaining nearly 10%, or $550, on a daily basis.

The cancellation of the highly-anticipated SegWit2x upgrade last week triggered the sharpest sell-off that bitcoin suffered since its introduction as it lost more than $2000 in just four days. However, the trading volume in cryptocurrencies remained high during that period, suggesting that investors were not giving up on digital currencies yet, they were just looking for alternatives. In fact, bitcoin cash surged to a fresh record high near the $2500 level on Sunday before losing more than 50% on Monday, reflecting the shift of demand in the market.

On Monday, in a speech at the University of Zurich in Switzerland, the Bank of Japan Governor Haruhiko Kuroda said that although the BoJ didn't have any plans to issue its own cryptocurrencies, he didn't see any problems with their private use.

Technical levels to consider

The initial hurdle for the pair aligns at $6600/$6680 (20-DMA/daily high) ahead of $7300 (Nov. 11 high) and $7900 (record high). On the downside, supports could be seen at $5600 (50-DMA), $5000 (psychological level) and $4800 (100-DMA).

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