Crypto Market: The Indicators Are Red!

The majority of cryptocurrencies are currently displaying a slight regression. Bitcoin, along with ether and other altcoins, are struggling to stabilize. This has put the entire crypto community on high alert. Let’s take a look around!

Bitcoin, Ethereum, BNB, SOL… The Great Tumble!

The debates and analyses surrounding Bitcoin spot ETFs are undoubtedly having an impact on the price of the major cryptocurrencies. Bitcoin could climb to $50,000 this week, Matrixport ventures to predict.

In other words, the imminent approval of these financial products is generating a whole array of signs of excitement on the crypto market.

Except, this same market has a downside: volatility.

The #Crypto market is trading in the red today (3rd of January)📉

The global crypto market cap today is $1.82T, a 1.0% change in the last 24 hours.#Bitcoin is down ~1%, while #Ethereum and #Cardano are down ~2%#Solana and #Avalanche are down ~6% each👀 pic.twitter.com/1LozYgQKjH

— Satoshi Talks (@Satoshi_Talks) January 3, 2024

Looking at this article from Forbes, the cryptocurrency market will experience a decline over the course of January 2024. Because the yo-yo displayed by most currencies (Ethereum, Bitcoin, BNB, etc.) at the moment is the result of nuanced market sentiments. Initially driven by fear, knowing that the damages from the FTX storm are still apparent, they let themselves be influenced by greed and also by neutrality.

Still, a large part of the cryptocurrencies was boosted by the bitcoin comeback since October 23rd of the last year. The queen of cryptos was not left immune to the relief experienced in the macro-economic situation, the decrease in inflation, the reduction of the FED’s direct rates, the rise in the price of gold, the bitcoin halving in April 2024, and also the Bitcoin spot ETFs.

However, this tweet from CoinGecko seems contradictory to this appearance of a bull run.

Total #crypto market cap is down 7.2% to $1.7T today 🔴

Are you buying the dip? pic.twitter.com/PwWGLSWoRe

— CoinGecko (@coingecko) January 3, 2024

Apparently, very clear differences are emerging compared to the images attached to the tweets from Satoshi Talks and CoinGecko. The recent data from CoinGecko highlight a drop of 6.55% for BTC and 7.81% for ETH.

Are cryptos resilient?

In an article dated December 29, 2023, BeInCrypto had already tried to explain the decline of the cryptocurrency market at that time. On the occasion, the crypto media pointed out a resistance zone at 1.60 trillion dollars. It was lost and then recovered by the Crypto Market Cap in a short time.

A strong rebound pushing it towards a resistance of 1.87 trillion dollars was expected. This represents an approximate rise of 15%.

Regarding Bitcoin, it has flirted with the support zone of $42,250 advanced by analysts. Two outcomes remain likely: either it continues to tumble down to –11%, reaching a support at $37,800. Or it observes a strong rebound, initiating a rise of 15%, and hitting a new resistance at $48,600.

It’s worth noting that today marks the commemoration of the 15th anniversary of the mining of the first BTC block.