On October 5, Bitcoin (BTC-USD) spiked to nearly $124,000. The $120,000 peak price is a resistance level that BTC faced throughout the summer. Between July and August, Bitcoin tried, but failed, to break out above that price.
From October through November 22, a downtrend ensued. Leveraged firms like Strategy (MSTR) fared worse than the underlying cryptocurrency. Investors previously paid a premium to buy MSTR, compared to BTC. The panicked selling ended that.
From November 22 through the end of last week, Bitcoin rebounded to close at around $91,000. Upset traders who bought the crypto at its all-time high blamed JPMorgan Chase (JPM) for the bear attack. The claims that this large bank is sending BTC lower are unfounded.
Retail buyers who bought the dip are one of the reasons for the rebound. Additionally, unknown buyers purchased big positions. The high demand contributed to the rebound. This V-shaped recovery is nothing new. Throughout its history, BTC tended to recover when holders least expected it. This time, however, other cryptocurrencies may not enjoy the same resiliency.
Investors should be wary of Ether (ETH-USD) or more speculative cryptos like LIF3. LIF3, for example, lost 44.5% in the last month. Its small recovery in recent days appears shaky.
