Tuesday, February 27, 2024

Market Watch Dec 19: Will Bitcoin Touch the Lows of $14,000 Soon? All Gains Lost.

Bitcoin hasn’t seen gains over the weekend and continues to dwell at the $16,000 level into a fresh new week. The topmost cryptocurrency seems to have lost all the gains it made last week. But then analysts say that despite the bearishness, the value of the majority of cryptocurrencies remains unchanged.

BTC has been holding at $16,730 and lost 0.16% in the last 24 hours. Ethereum down by 0.57% was trading at $1,180 as per data from CoinMarketCap. Among the altcoins, XRP is the biggest loser. It lost 2.66% of its value in the last 24 hours. Litecoin lost 2.48%, Dogecoin 1.99%, Polygon 1.82%, and Cardano was down by 1.50%. Majority of the altcoins are flashing in red.

QCP Capital, a crypto trading firm, pointed out that while volatility-crushing fatigue has set in as the Christmas and New Year interval approaches, markets will have to react to this in a bearish way. It either has to slowly bleed into year-end, or with another January, that is a quarter-one sell-off like it was seen in 2022. Over the weekend, the market was somewhat stagnated and stayed flat into Asia trading hours early Monday.

Greg Cipolaro, global head of research at NYDIG, said investors remain understandably skittish about the practices of exchanges, prop trading firms and lenders. He believes the ongoing pressure from the Fed might keep a lid on financial assets, including Bitcoin until there is some relief from the monetary policy backdrop. Moreover, Glassnode highlighted that supply and demand dynamics show a lack of activity as investors remain wary following the demise of crypto exchange FTX and the fear, uncertainty and doubt (FUD) around Binance. The data and analysis firm stated that the outlook for Bitcoin is not assured for the year-end given due to the resistance above $18,000.

All for the test.

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