BITCOIN WEAKENS ITS GRIP
Hello everyone, colleagues!
This week is quite empty in terms of economic events with potential for high volatility. Today and tomorrow are holidays in the USA, celebrating Christmas, so the market may surprise us in the Asian session if there are reasons for it.
Regarding Bitcoin, the asset has dropped to the expected values from the previous review, and even lower to $92K, breaking through the ascending trend line. Almost immediately after the drop, we observed a fairly quick buyback back to nearly $100K, and now the price is hovering in the range of $92K-94K.
The unexpected rise of Bitcoin to a new ATH created inflated expectations, which ultimately, as usual, led to multiple liquidations of many traders.
The emerging pessimism in the market has filtered out the 'casual passengers,' leaving only those who believe in the long-term growth of cryptocurrencies.
Personally, I also expect continued growth in the near future, but time will tell. Again, I'm talking about growth within the last ATH for now, and we may see a complex ambiguous structure in Bitcoin resembling a sideways trend in a large range of 15-20K. Globally, it looks like the distribution of Bitcoin, and this process will be long, possibly with new highs.
Before the rise, the lows may be taken out one more time with a pullback to the global ascending support around $90,800 (low from 26.11.24)
As I mentioned in the last review, Ethereum may react to a false breakout of the global descending resistance and drop below the price of $3,500. As we can see, the asset dropped below this mark by another 12%.
On the 1W chart, a powerful bearish candle formed, after which I do not rule out further declines. However, on smaller timeframes (4-6H), bullish engulfing patterns have appeared, with a likelihood of them playing out soon. Moreover, on the 8H chart, more than half of the tail of the candle from 20.12 has already been worked out, and Bitcoin dominance (BTC.D) continues to decline after a good correction. According to data from the analytical platform CryptoQuant, large inflows of BTC to exchanges and significant outflows of stablecoins are being observed, indicating weakness in Bitcoin and thus giving altcoins more room for growth.
On this positive note, we conclude our review and wish you profit and patience. See you soon.