Retail bulls go big on longs as BTC slides below $40K
Fed’s inflation comments fail to halt BTC and ETH advance
While BTC showed volatility following Fed Chairman Powell’s comments on inflation yesterday, the market remains bullish.
The cryptocurrency market has continued to trend upward, posting around a 1.1% gain today, with its total market capitalization exceeding $2.8 trillion. BTC has continued to attempt a breach of the resistance at 59,000 USDT since its bounce from 53,000 USDT earlier this week.
However, the real star recently has been ETH, with its price going up about 20% since Monday this week. The strong bullish trend for the second-largest crypto by market cap has injected positivity into an otherwise-ranging market.
At the time of writing, ETH is trading just under 4,800 USDT, with its all-time high of 4,871 USDT just in reach. BTC is also trading around 58,500 USDT after dropping as low as 56,000 USDT yesterday.
Fed chairman’s inflation comments result in market volatility
On Tuesday, Jerome Powell, the chairman of the U.S. Federal Reserve, spoke about inflation in front of Congress and acknowledged the concerns surrounding it. While initially considered transitory in nature due to COVID-19-led economic measures, the Fed is now recognizing that inflation could remain high well into the next year.
What this meant for the markets is that the Fed is now likely to increase interest rates ahead of schedule and will, perhaps, start tapering asset purchases faster. As a result, there was increased volatility yesterday, and BTC also fell from 59,184 USDT to 56,533 USDT in two hours.
Markets have somewhat recovered since then, and BTC saw a bounce from those levels before attempting 59,000 USDT again today.
Top altcoin gainers and losers: AKITA goes from top to bottom
- KOL/USDT +35.72%
- HDAO/USDT +30.56%
- MDT/USDT +22.21%
- PST/USDT -9.16%
- IMX/USDT -10.07%
- AKITA/USDT -12.27%
Today’s top performers on OKEx include KOL, HDAO and MDT with gains of 35.72%, 30.56% and 22.21%, respectively. AKITA, one of the dog-themed memecoins that was the top gainer yesterday, is the top loser today with a loss of 12.27%.
BTC technical analysis: Shaken, not stirred
BTC looked strong since its bounce from 53,000 USDT levels on Monday and attempted to reclaim the zone between 59,000 USDT and 60,000 USDT right before the Fed’s comments on inflation shook markets.
Assuringly, however, the market leader has recovered from that price action and is knocking at 59,000 USDT again today. Its reaction to this price level will determine further market momentum, but December being a historically positive month brings optimism for bulls.
ETH technical analysis: One step away from new ATHs
ETH has put up a solid show in the last three days with gains of over 20%. The ETH/BTC pair has been trending upward for a while now, and we’re seeing bullish sentiment ramping up for the second-largest cryptocurrency by market capitalization.
Currently, ETH is trading just below the last resistance it needs to cross, around 4,800 USDT, before entering another price discovery phase that could see it surpassing 5,000 USDT.
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