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Crypto Market Suffers Black Friday Sell Off

November 26, 2021
by Joseph Jeffriess, Market Analyst

What was a mainly positive week for the crypto world took a dramatic turn on Friday, as global markets tanked on the news of a new Covid variant found in Southern Africa. This just goes to show that crypto markets are still well connected to the risk asset class. Things changed quickly, midweek. We saw decent rallies develop on some of the top 10 as demand started to sort itself out. ETH traded above 4450, and BTC tested back above 49K.

Friday morning UK time this all changed as panic selling spilt over from equity and risk FX markets into crypto. BTC plunged over 8%, ETH over 13%, and AVAX continued its retreat from recent highs, dropping a further 15% to today’s low. Is this overdone? We will be watching today’s US session with interest as they come back from the Thanksgiving holiday.

Despite the late week gloom, we did see some markets buck Friday’s sell-off. Basic Attention Token or BAT (BATUSD) has seen a fantastic week, jumping by 41.85% to its current weekly high and record high at 1.553960. BAT is an Ethereum token that powers Brave’s free web browser. Users can replace ads on Brave’s network and receive BAT from advertisers for viewing the ads. Brave has recently added an inbuilt wallet and integrated Solana helping to drive user demand.

Looking at the current 4H chart, we can see just have positive recent updates have been for BAT, with buyers breaking out of two consolidation patterns and hitting new records along the way. While price can remain above the range 1.3650 we will look for buyers to continue to hold control. If sellers take price back into the range, that could be a worry and suggest dropping momentum. We would like to see a new higher low to show buyers are back in control.

All times are AEDT.