Sideways Action Persists in Crypto Market as Bitcoin Holds Above $17,100

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(Kitco News) – Friday’s action in the crypto market was more or less the same as the majority of tokens continued to trade sideways in the absence of any major developments as investors await revelations on inflation and interest rates next week.

Conditions in traditional markets were slightly worse as stocks slid towards the market close, leading the S&P, Dow and Nasdaq to end the day in the red, down 0.7%, 0, 9% and 0.7%, respectively. For the week, the S&P fell 3.4%, the Dow Jones 2.8% and the tech-heavy Nasdaq 4%.

Data from TradingView shows that after holding over $17,250 throughout the morning trading session, Bitcoin (BTC) faced a wave of afternoon selling from bears that attempt to push it back below the major support at $17,000. At the time of writing, BTC is trading at $17,100, marking a loss of 0.55% on the day but a gain of 0.50% on the week.

BTC/USD 4 hour chart. Source: Trading View

According to Kitco Senior Technical Analyst Jim Wyckoff, “prices are still in a sideways, choppy grind” due to the fact that “bulls and bears are on an overall short-term technical playing field.”

With some valuable signals from the current charts to provide insight into what’s next for Bitcoin, Wyckoff suggested that “the direction in which BC prices break out of the current trading range will most likely be the direction of the next trend price movement”.

A survey of Crypto Twitter shows the majority of analysts share a similar view, with many waiting for a clear signal from the market before taking their next move.

Overall, the consensus remains that Bitcoin is oversold and in a good place for accumulation, which will continue to be the case until a significant upside break occurs.

#Bitcoin remains “oversold” based on the 18-month Williams%R oscillator, a signal that flashed in June 2022.

This statistically indicates that #BTC is in a deep accumulation zone.

As long as we remain oversold, no bull market.

Patient purchases of DCA and risk management are essential. pic.twitter.com/fx0tNgYkH4

— Caleb Franzen (@CalebFranzen) December 8, 2022

Altcoins follow the performance of Bitcoin

The altcoin market largely followed Bitcoin’s downtrend on Friday, except for a few notable spots that managed to post double-digit gains.

Daily performance of the cryptocurrency market. Source: Coin360

This includes Fetch AI (FET), which recorded a gain of 25.91%, a gain of 13.28% for Ampleforth (AMPL) and a gain of 10.92% for Numeraire (NMR).

The overall cryptocurrency market capitalization now stands at $853 billion and Bitcoin’s dominance rate is 38.6%.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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