Today, Bitcoin went down to as low as $17,570 in the Asian and European trading session before making its way above $17,900 with a mere $3.37 billion in ‘real’ trading volume.

With the latest round of losses came the largest drop in the Bitcoin exchange balance in more than 3 years of 1.81%, over 43,000 which turned out to be Binance making in-house transfers.

Now, it’s to be seen if this is all the pain for Bitcoin, or even a bigger buy the dip opportunity is on the way, which will be the case if $17,100 gets breached to the downside.

“We're now testing the first fib line at $17,640. If it breaks, the next mathematically probable level of support is $16,180,” noted analyst Mati Greenspan. “Oddly, that's exactly where we bounced 2 weeks ago.”

It was on Thanksgiving that the Bitcoin had a correction to almost $16,200 level on Bitstamp from the high of $19,500.

Last month ended on a good note with BTC going as high as $19,860, which continued into December as we went even higher to hit an all-time high on several cryptocurrency exchanges but remained shy of hitting $20k.

The choppy market has been going on for nearly three weeks now, but the latest bout has been seen with the stimulus measures in focus.

The European Central Bank announced an additional 500 billion euros ($607 billion) in bond-buying on Thursday.

“Ample monetary stimulus remains necessary to support the economic recovery and to safeguard medium-term price stability,” said ECB President Christine Lagarde.

We are determined to keep financing conditions easy for as long as necessary to support the economic recovery. This determination is reflected in our latest measures. https://t.co/OZ8ndtQgkx

— Christine Lagarde (@Lagarde) December 11, 2020

With this latest round, ECB scaled up its monetary stimulus to above €3 trillion ($3.6 trillion) this year to prop up the European economy, which has been hit much harder than the US and other advanced economies due to strict lockdowns. The key interest rate meanwhile remained unchanged at minus 0.5%. She said,

“In terms of inflation, let me say that it is disappointingly low. It has been negative for the last three months, it’s at -0.3% yet again…caused by weak demand, it is also caused by lower wages, and it is also caused by the exchange rate appreciation.”

During the press conference, Lagarde said a resurgence in COVID-19 cases and containment measures are restricting economic activity in the euro area.

Just this week, Japan announced about $700 billion in economic stimulus to speed up the recovery. Meanwhile, in the US, a $900 billion coronavirus aid plan is debated in Congress. Federal Reserve officials are expected to issue new guidance at their Dec. 15-16 meeting.

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