Use promocode TNM51 at www.giottus.com/profile#promo after registration to get Rs.51 worth free Bitcoin.
Bitcoin (BTC) succumbed to selling pressures again at the psychological level of $50,000. The events that led to the current bearish sentiment is believed to stem from the defaulting of China’s real estate group Evergrande and regulatory pressures from US legal authorities as crypto companies testified before the US Congress. Given the current market conditions, many are calling for a bear market while some believe BTC will make all time highs again during Q1 2022. In this article, we will analyse the price actions of BTC and major altcoins during the last week.
Post the crypto flash crash, BTC is struggling to recover from the sub $50,000 levels. BTC is currently holding on to the strong support from the 200 moving average (MA) at $46,800. In case of a breach, the next stop for BTC will be $45,000 and $42,000 if it declines further. On the upside, the major resistance for BTC will remain at $50,000. The bears are in full control as BTC has dipped 33% from its all-time high making the market participants adjust their expectations during the last few weeks of 2021. BTC is currently trading at $47,700, down by 7% in the last seven days.
While the strength exhibited by Ethereum (ETH) against BTC’s price action post the liquidation event on December 4 is laudable, the existing market sentiment demands a price level of above $4,000 for ETH to remain bullish. Unfortunately, having lost major support, ETH is currently trading near $3,800. For ETH to regain the bullish momentum, ETH must break back into the month-long trading range between $4,000 and $4,470. However, the good news is that ETH/BTC is currently testing the 0.08 level with the confluence of strong support at $3,730. ETH is likely to build momentum hereon unless BTC crashes the party.
All top 20 cryptocurrencies except Dogecoin (DOGE) by market cap have suffered a setback with most of them losing over 10% over the last week. At the time of writing, DOGE had a sharp spike (overall 15% in 24 hours) in its price as Tesla’s CEO Elon Musk tweeted about using DOGE as a means of payment for their upcoming merchandise.
Barring that, the overall picture for altcoins looks bleak as strong performers during Q4 like Terra (LUNA), Polygon (MATIC), Solana (SOL) bled more than 20% in a week. In the midst of this bearishness, Near Protocol (NEAR) rallied 28% in a week as crypto fintech provider Moonpay allowed users to buy NEAR tokens worldwide.
According to data analytics firm Glassnode, the number of ETH addresses holding greater than or equal to 0.01 ETH reached a record high level of 19.95 million on December 4. In addition to that, the ETH balance on exchanges has gone to record lows. These favourable conditions along with its shift to a proof of stake system (ETH 2.0) in its roadmap set up ETH for a strong rally during 2022.
Inflation in the US hit 6.8% last month (the highest since May 1982) which usually is a positive signal for BTC and crypto in general. However, analysts predict that the current pullback was in line with the expectations of a tapering event announcement by the Fed this week. BTC is expected to consolidate until the end of Q1 2021 with a possible retest of the $42,000 region.
Disclaimer: This article was authored by Giottus Cryptocurrency Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.