Bitcoin shows resilience, holding above $87,500 support, while altcoins like Stellar and Cardano lead weekly gains with double digits.
Short-term crypto trends remain bearish, but weekly charts highlight renewed optimism as DeFi and gaming tokens gain investor traction.
The market signals bullish potential, with Bitcoin breaking $102K resistance and altcoins thriving in DeFi and metaverse sectors.
The first week of January has brought mixed fortunes for the crypto market, with Bitcoin holding just under $97,000. Ethereum, meanwhile, retraced below $3,400. Altcoins, however, continued to display remarkable strength, with Stellar surging 26%, Injective 24%, and Cardano 19% over the week. This rebound follows a bearish end to 2024, signaling renewed investor optimism.
Short-Term Trends Show Bearish Sentiment
In the 1-day timeframe, most cryptocurrencies experienced losses, reflecting short-term bearish trends. Bitcoin and Ethereum showed minimal movement, with red bars dominating market charts. Major assets like Binance Coin and XRP also dipped, contributing to a subdued trading atmosphere. Only a few exceptions, such as Toncoin, managed slight gains, underscoring limited bullish sentiment in the short term.
Source: Santiment
Moreover, market activity around metaverse and gaming tokens showed resilience, hinting at selective investor interest. However, this was insufficient to offset the broader decline. Momentum indicators suggest that traders remain cautious amid consolidation.
Weekly Gains Highlight Altcoin Resilience
Over the 7-day period, the market painted a brighter picture. Bitcoin and Ethereum recorded modest gains, supported by broader bullish trends. altcoins like Chainlink and Solana led the pack, with double-digit percentage growth. DeFi tokens and lower-cap cryptocurrencies displayed higher volatility but delivered impressive returns.
Notably, Bitcoin’s 8-hour Binance price chart showed a robust upward trend. Sequential higher highs and higher lows confirmed sustained bullish momentum. A crucial support zone between $87,500 and $92,000 repeatedly defended against sell-offs, establishing strong buying interest.
Source: X
Additionally, the breakout above $102,000 was an important shift. Momentum indicators confirmed renewed strength, with bullish divergences aligning with key support levels. While a brief pullback followed the $102,000 top, the price surged past $110,000, signaling further growth potential.
Outlook Remains Positive
Altcoins connected to DeFi, gaming, and the metaverse are grabbing investors' attention. Bitcoin is holding strong above key price levels, showing that big institutions and investors are still interested. If the overall economy stays stable, the crypto market could keep moving upward.
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