Bitcoin fails $17,500 test as market remains skeptical of rallies
Dec 5 2022
Bitcoin had been struggling to get over $17,000 last week but maintained above \(16,800, this was a key level to hold and eventually led to our current local top of around \)17,400. Despite Bitcoin’s move to the upside, we can notice a trend shift in the S&P 500 that can bring it down to 3,700 from 4,080. DXY, on the other hand is maintaining support at 104.5 as we wait for the producer price index release on December 9.
For now, market participants remain skeptical of any rallies, especially ahead of the FOMC later this month. We would want to see Bitcoin above $20,000 before considering the possibility of a strong and sustainable reversal.
Top altcoin gainers and losers
Gainers
- Axie Infinity AXS (+23.79%)
- Cronos CRO (+10.36%)
- Litecoin LTC (+9.87%)
Losers
- Celo CELO (-4.25%)
- Toncoin TON (-2.33%)
- Fei USD FEI (-2.15%)
Bitcoin Technical Analysis
Bitcoin was able to hold above \(16,800 and finally pushed through \)17,300 on its third attempt to make a new high at \(17,400. We can see a gradual volume decline, however, which indicates that if Bitcoin is not able to stay above \)17,200 in the coming hours we can expect a sharp correction toward $16,500 before any other moves.
Ethereum Technical Analysis
Ethereum on the other hand already covered its fair value gap and was unable to break through \(1,300 convincingly, even on its third attempt. We can also see a lot of liquidity sitting around \)1,220 in the form of long positions which could potentially be taken out if Bitcoin correction, as suggested above, plays out. We expect $1,190 to be an area of interest for Ethereum in the coming weeks.
NFT Market Map
Gods Unchained (+0.64%) topped the NFT volume leaderboard in dollar terms, but it’s not the biggest winner by volume growth.
Apart from CloneX (-0.17%), all collections in the top 10 outperformed Gods Unchained, with the best ones being:
- Reveries by rem (+610.33%)
- Bored Ape Yacht Club (+189.85%)
- RTFKT X NIKE MONOLITH (+176.76%)
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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.
