Altcoins surge as Bitcoin bulls fail to break above $17,000

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(Kitco News) – Little has changed in the crypto market over the past 24 hours as the majority of major tokens continue to trade in a tight range while investors stay away on concerns related to the ongoing dispute between cryptocurrency exchange Gemini and the Digital Currency Group (DCG).

With DCG being one of the biggest VC funds in the ecosystem, the prospect of shady fund management and the potential for another high-profile bankruptcy has crypto investors taking a wait-and-see approach before trading. put more money on the market. .

Traditional markets also saw another day of sideways trading as the release of December Fed policy meeting minutes showed that central bank officials have no plans to cut interest rates. interest in 2023. The hawkish report reversed gains made in the morning session. but a late push to the close helped push the S&P, Dow and Nasdaq into the green, closing down 0.75%, 0.40% and 0.69% respectively.

Data from TradingView shows that Bitcoin (BTC) bulls attempted to push the crypto higher above the resistance at $17,000 around midday, but were firmly rejected by the bears, causing the price to pull back by Bitcoin to support at $16,800.

BTC/USD 4 hour chart. Source: Trading View

Kitco’s veteran technical analyst Jim Wyckoff noted the continued sideways trading in his Morning Bitcoin Update, stating that “although trading remains sideways and choppy overall, the bulls have gained momentum. momentum this week,” adding that “traders are waiting for a spark to ignite further.” volatile price action.

The stagnant market conditions were also highlighted in the latest market report from Arcane Research, which noted that “BTC and ETH have seen slight declines over the past seven days, but are trading within a price range very steady.”

According to analysts, “The current stale price action is reflected in BTC volatility, which has eased to rare lows, as evidenced by BTC’s 7-day volatility, hitting lows not seen since July 2020. Along with the decline in volatility comes spot volumes drying up and the futures market reigning in a flat regime.

Overall, the prevailing consensus is that the market will continue to trade sideways for the foreseeable future, with market analyst Michaël van de Poppe pointing to the range between $16,500 and $16,600 as a possible entry point for a long position.

Good old Powell with the FOMC minutes moving the markets again.

Rise before the FOMC, then correction after.

Run #Bitcoin towards crucial resistance, at $17,000, which we marked earlier.

Probably more consolidation.

Looking for longs around $16.5-16.6K.

— Michael van de Poppe (@CryptoMichNL) January 4, 2023

Altcoins in the green

Overall, the altcoin market trended positively on Wednesday, with the majority of tokens posting gains ranging from 1-6%, which pleasantly surprised many crypto investors.

Daily performance of the cryptocurrency market. Source: Coin360

The day’s top performers included a breakout performance from XYO (XYO), which saw an 83.4% gain to trade at $0.0088, followed by a 19.84% gain for Ethereum. Classic (ETC) and an increase of 19.05% for Synapse (SYN) .

The overall cryptocurrency market capitalization now stands at $817 billion and Bitcoin’s dominance rate is 39.6%.

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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