With Bitcoin 33% below its November all-time highs, the queen of digital currencies isn’t out of the woods just yet, as bears are showing their grip in the near term. But the behavior of the crypto market seems to agree with those who had warned that we have witnessed a “sell the rumor, buy the news” movement, with rises this Wednesday above US $ 49,000. All in all, the close below $ 47,000 sends a red flag, as this price level has become a true waterline for bitcoin, which it must maintain if it has the slightest intention of starring. a Christmas rally.
The downward bias that has maintained the most traded of digital tokens persists, said Craig Erlam, an analyst at Onada, “as it is struggling to generate momentum above $ 50,000.” “Earlier this week it fell below $ 47,000, but quickly recovered again,” he says, adding: “I guess we’ll see if Bitcoin can expect a Christmas rally soon.”
As for Ethereum, it remains today at a price level that previously acted as support and is now formidable resistance.. Although the second currency in market capitalization left highs this Wednesday above this level and insists on its attempts to overcome it. The technical outlook for ether – the native unit of the Ethereum network – suggests that the price is encapsulated in a range that goes between this resistance and $ 3,660, in round numbers, with a December 4 low at the gates of u $ s3,500, a barrier that analysts at IG Markets advise that it must be sustained to avoid further falls.
As for the rest of altcoins, they maintain the positive path this Thursday after the rebound led by the majority of tokens after the Fed. Solana and Avalanche leave notable increases, while the Dogecoin returns to the decline after rising more than 15% last day, thanks to the statements of the CEO of Tesla, Elon Musk, that he will accept the cryptomeme as a means of payment. Total capitalization is back above $ 2.2 trillion.
However, other concerns hover over the market. On the one hand, there is the repeated refusal of the US Securities and Exchange Commission (SEC) to approve an exchange-traded fund (ETF) based on physical bitcoin. Specifically, the US markets regulator’s reasons for rejecting the VanEck fund in November caught some investors by surprise, citing an inability to avoid manipulation of the crypto market due to unregulated trading platforms and large volume of trading based on the ‘stablecoin’ of Tether (USDT).
On the other hand, the recent falls coincide with the more global fears of the market about the developments of the pandemic, especially after the appearance of the Omicron variant of Covid. Finally, as mentioned by ‘CoinTelegraph’, the bears that pile up in the derivatives market have control of 755 million dollars of options in bitcoin, which expire this Friday, as long as the price remains below $ 48,000 .
But other technical signals and the behavior of the whales, which appear to be actively buying and entering the market at these prices, give hope that another bull run could be seen before the end of the year, as analyst Michaël van de Poppe on his Twitter account.
The analyst published: “fear recedes little by little since nothing important has transpired from the Fed meeting.” In very short-term terms, Bitcoin has support around the corner at last week’s lows ($ 47,215) and resistance at last week’s highs ($ 52,195). “And all of the above within a clear long-term upward trend in the background, which has not been threatened in the least. However, unlike other market moments, no more or less clear potential pattern is observed”, concludes José María Rodríguez, technical analyst at Bolsamanía.
Source From: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
