Cryptocurrency Market Recap (December 4 – December 10) Here’s how Bitcoin and major altcoins performed this week:
This week in the cryptocurrency market, Layer 1 (L1) tokens had solid performances, especially Cardano (ADA), Avalanche (AVAX), and Algorand (ALGO) in the top 100 coins. As Bitcoin hits a new 52W high in 2023, L1 tokens are on the rise, posting double-digit gains of over 30%.
Bitcoin (BTC)’s steady hand has been the wind beneath the wings of the altcoin market. The price of BTC is stable, providing a favorable environment for capital to flow into alternative cryptocurrencies.
Technical analysis of Bitcoin price movements provides additional insight into market behavior. On the chart, BTC’s price trajectory shows a strong upward trend, breaking above key resistance to challenge the next psychological mark of $45,000.
Bitcoin price peaked at around $44,729 before hitting resistance, creating a potential ‘double top’ pattern. This is often a setup that indicates an upcoming downtrend. The chart highlights possible downside areas where the price could reverse.
However, buyers paint a picture of a consolidation range that completes a bullish flag pattern and portends a continuation of the trend. With the strength showing, Bitcoin may soon overcome the $45,000 barrier next week.
Amid Bitcoin’s rally, short-term traders felt the pressure as bearish bets failed, leading to the liquidation of about $160 million over two days. This pressure caused Bitcoin to rise from $39,000 to $44,000, demonstrating the volatile interplay between market sentiment and price movements.
How Economic Data Affects Bitcoin
This week, US economic data played a pivotal role in the cryptocurrency market narrative. Stronger-than-expected job growth and lower unemployment in November caused the price of Bitcoin to briefly falter, backing slightly back to $43,500.
Traditional markets also responded with Treasury yields rising, reflecting a shift in investor sentiment that could pause or flatten Bitcoin’s recent rally.
If this happens, the price could retreat to $42,000, which acts as the first support level, followed by the 50-day EMA at $37,263 if the correction deepens.
The weekly summary paints a picture of an active cryptocurrency ecosystem, with altcoins like Cardano gaining investor attention and Bitcoin’s price action receiving scrutiny from a technical analysis perspective. Broad economic indicators continue to influence the cryptocurrency, as seen by the immediate impact of US jobs data on the price of Bitcoin.
Meanwhile, technical chart analysis allows traders and investors to prepare for potential volatility while carefully watching the EMA levels, which are important for strategic decision-making. As always, the complexity of the market requires a blend of technical and fundamental perspectives to navigate the ever-changing cryptocurrency market.