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The month of November saw great rallies by Bitcoin (BTC) and raised hopes of a strong end to the year with a price target of upwards of $75,000. December has disappointed so far as BTC continues to lose ground. Risk-averse sentiment prevails across broader markets due to the uncertainty surrounding the spread of Covid-19 variant Omicron in several parts of the world. BTCâ€™s downtrend is also attributed to the market participants booking profits for the holidays ahead. In this article, we will do a brief analysis on the cryptocurrency market during the last week.
Bitcoin still under water but recovering
BTC has been fluctuating between the $45,000 to $49,000 region for most of the last week. Today, with a 6% gain in 24 hours, BTC is currently trying to take on the short-term major resistance at $49,000. Post which, it has to break the psychological barrier at $50,000. On the other hand, BTC bulls offer strong support at $44,000 and $45,400. Bitcoin dominance is nearly at its lowest at 40.7% with a 1.3% dip in the last three weeks. BTC trade volumes across exchanges has seen a slight increase of 5%.
Ethereum in Consolidation
Ethereum (ETH) continues to show strength in the current bearish market as it regained $4,000 today after re-testing the $3,750 level. Despite the intraday volatility, ETH is trying to break out of the 20 EMA (exponential moving average) at $4,060. If it manages to clear it, then $4,150 is in the cards. On the flip side, ETH enjoys strong support at $3,600 and $3,750. ETH is currently trading near $4,017, up by 5% in the last seven days.
Avalanche, Terra & Polygon gain
Even though the short-term sentiment is bordering on extreme fear, the top 20 cryptocurrencies have registered little to moderate gains over the last day. Avalanche (AVAX) has been outstanding this week as it has rallied a massive 50%. AVAX has rallied on the momentum gained from the addition of native version of USDC (dollar-pegged stablecoin issued by Circle) on its blockchain, support from Bitgo - a $64 billion assets under management (AUM) crypto custodian, and collaboration with web3 accelerator DeFi Alliance to launch a gaming accelerator program.
Polygon (MATIC) had a weekly gain of 25% while Terra (LUNA) registered a substantial 46% gain to record its new all-time-high. MATIC is utilising the momentum post the announcement of collaboration with zero-knowledge (ZK) proof technology that positions itself as a leading scaling platform for ETH.
Short-term outlook for Bitcoin
Despite far-fetched calls for a price target of $75,000 by the end of December, few analysts are calling for a consolidation period till end of year for Bitcoin.
Relatively, Ethereum and some key altcoins have held up well this month. Given Ethereum in Q1 (Jan.- Mar.) is generally expected to do well, the altcoin market can recover to previous highs soon if Bitcoin can reclaim $53,000 and beyond by January.
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.