Bitcoin price bottoms out at $16,520 as a Santa Claus rally is nowhere in sight

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(Kitco News) – Last week’s Fed-inspired weakness in global financial markets continued to impact asset prices on Monday, with crypto and traditional markets drifting lower throughout the day. trading, with traders coming to terms with the fact that there might not be a Santa Claus rally. in 2022.

After back-to-back weekly stock market losses, the S&P, Dow and Nasdaq began the last full trading week of 2022 on shaky ground, trending lower to end the day in the red, down 0.90%, 0.49% and 1.49. %, respectively.

Data from TradingView shows that after holding above $16,700 for most of the morning, Bitcoin bears overwhelmed the bulls and sent the top crypto down to a daily low of $16,520 before trading. bullish reinforcements are not forthcoming to get it back above $16,600.

BTC/USD 4 hour chart. Source: Trading View

Kitco Senior Technical Analyst Jim Wyckoff mentioned BTC’s morning weakness in his daily Bitcoin update, noting that the “heavy selling pressure at the end of last week [has] reversed an upward price trend on the daily chart.

Following today’s bearish move, “the bulls have lost their overall short-term technical advantage and the bears now have some momentum on their side,” Wyckoff said.

Bitcoin had a tough week

Further information on Bitcoin’s price action was provided in Eight Global’s latest macro update, which began by saying that “BTC has had a very tough week.”

“Price made a bearish retest of the low of the range, followed by a strong reaction,” Eight Global analysts said, warning that “As long as price is below the low of the range, it is likely that we will go much further based on the weekly schedule.

According to the update, the monthly demand found between $10,000 and $12,000 will serve as a strong support level, but “there is still a long way to go to push the price towards that $10-12,000 area as we still have several strong support levels at shorter timeframes.”

A look at the four-hour chart for Bitcoin shows that the top crypto is trading in a range of $15,600 to $18,200, which it hovered between during last week’s rate hike announcement by the Fed Chairman Jerome Powell.

BTC/USD 4 hour chart. Source: Eight Global

“It made the award fit the bill perfectly. [fair value gap] up to $16.5,000. Therefore, we expect a bounce towards $17.2-17.5000, before reaching a lower high in this area,” Eight Global said. “If it were indeed to play out this way, we would expect price to find support at the first level of support around $16.1-16.3k, or a little lower around $15.5-15. $.8k where the low end of the range is also,” the update concluded.

Tough walk in the altcoin market

The difficulties facing the crypto market were highlighted by the poor performance of altcoins, as even stablecoins were in the red in trading on Monday.

Daily performance of the cryptocurrency market. Source: Coin360

Still, several tokens managed to post positive gains for the day despite the widespread weakness. This includes Voyager (VGX), which gained 23.2% after it was revealed that cryptocurrency exchange Binance US would buy its assets for 1.022 billion, a 17.31% increase for BinaryX (BNX) and a 9.45% gain for XDC Network (XDC).

The overall cryptocurrency market capitalization now stands at $799 billion and Bitcoin’s dominance rate is 40%.

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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