Bitcoin breaks above $19,000 as market participants feel the FOMO
Bitcoin has had a 17% run and filled out most if not all of the sell side imbalance present from the previous range break. Its surge yesterday, backed by an increase in volume, sent it to the highest level since the FTX collapse on Nov. 9.
Looking forward, daily and weekly time frames remain bullish and signal Bitcoin still has room for pushing upward to $20,000. However, liquidation clusters call for bearish price action soon.
ETH (+1.79%) hasn’t seen any big movement since it soared to $1,400 yesterday. Its daily gain is in line with other altcoins in the top 10.
S&P 500 remained at 3964 and got rejected from 4,000, FOMC members have pointed out that they don’t like stock market rallies since they fear it could result in potentially inflationary consumer spending. DXY remains weak at 102.5.
Top altcoin gainers and losers
Bitcoin Technical Analysis
Bitcoin has had bearish divergences on lower time frames but nothing significant on H4 and daily. We’re most likely at the top, or very close to it, and given how $19,000 was our previous local range support, it wouldn’t be surprising if it acts as resistance and sends us down to range lows again. Alternatively, if Bitcoin breaks $21,300 and makes a higher high we can assume a trend shift.
Ethereum Technical Analysis
Ethereum has led altcoins in this relief move and has done 20% for itself. However, now it is starting to slow down and follow Bitcoin, which signals exhaustion. Overall volume remains decent for Ethereum, and its imbalance is close to being filled at $1,550. We’ll have to see if these price levels hold over the weekend but bulls may want to keep expectations in check, at least for now.
NFT Market Map
In contrast to the crypto market, NFTs had a gloomy day as trading volume dropped massively.
8 out of the top 10 NFT collections recorded a sharp decline of up to 72.79% in daily volume. Mutant Hounds (-48.92%) and Mutant Hound Collars (-63.30%) topped the volume in dollar terms but saw a big drop in growth after The Mutant Hounds !howl release.
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Disclaimer: None of the information here constitutes financial advice and market participants are advised to conduct their own research since cryptocurrencies are speculative assets with considerable risks.