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The cryptocurrency market had a muted recovery this week as Bitcoin (BTC) and Ethereum (ETH) regained their price levels from Friday over an otherwise quiet Christmas weekend. This led to altcoins such as Cardano (ADA), Polkadot (DOT), Polygon (MATIC), Uniswap (UNI) registering double digit gains over the last week. However, BTC has slipped below $50,000 today. In this article, we will take a look at the recent price actions of major cryptocurrencies along with short-term predictions for BTC.
Wavering price action for BTC & ETH
After giving a glimpse of breaking away from its month-long trading range, BTC has returned back to its consolidation zone. BTC reached an intra-week high of $52,088 with hopes of breaking the major resistance level near the $52,000-$53,000 region. But with weak trade volumes, BTC slid back to sub $50,000 levels this morning. Having lost support of the 200-day exponential moving average (EMA) at $49,800, the bulls are expected to lend support at $49,000 and $48,000 for the short-term. BTC is currently trading near $49,100 with a weekly gain of 1.4%.
ETH, the second-largest cryptocurrency, mimicked the market leaderâ€™s price actions as it had a week-long momentum build up from $3,944 to $4,127 before succumbing to sub $4,000 levels again. However, with the strong metaverse narrative driving the web3 space, ETH continues to exhibit strength despite the volatility of BTC. ETH enjoys support at $3,850 and $3,770. It is currently trading at $3,918 with a weekly decline of 2.3%
Altcoins Make Comeback
The top 20 cryptocurrencies excluding BTC and ETH have turned bearish due to BTCâ€™s price reversal this morning. However, the good news is that ADA, DOT, MATIC and UNI have gained on a weekly basis. ADA, the native token of Cardano, has gained 16% this week as its founder Charles Hoskinson mentioned about the upcoming network enhancements in 2022 and increased adoption efforts in Africa.
Polkadotâ€™s DOT had registered a 18% increase in a week as the second batch of parachain auctions went live. Parachains are blockchains that run on top of the main Polkadot blockchain. Polkadot has a limited number of slots that can support parachains thereby driving the demand for cryptocurrency.
MATIC saw a 16% bump in prices as the DeFi protocol Uniswap V3 got deployed onto the Polygon network. In turn, UNI registered 24% gain in prices as $20 million was offered earlier to boost the launch on Polygon. Chainlink (LINK) entered the top 20 cryptocurrency list with a 15% gain on the weekly chart.
BTC priming for 2022
As traders expected BTC to break the $52,000-$53,000 resistance zone this week, the reverse scenario played out prompting almost $300 million in liquidations across several crypto futures in the last 24 hours according to analytics tool Coinglass.
Despite the drop, BTCâ€™s mining hash rate has reached all-time highs after Chinaâ€™s crackdown, increasing endorsement by global investors and continuous buying of the price dip points to a strong bullish scenario for Bitcoin in Q1 2022. Meanwhile, we can expect BTC to continue its consolidation phase as we lead into the new year.
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.