NEWSLETTER
bitcoin (btc) struggled to stay above $43,000 until December 8, while a surge in altcoins put Ether (eth) in the spotlight.
eth and SOL step forward as bitcoin gains liquidity
Data from Cointelegraph Markets Pro and TradingView showed continued btc price consolidation as eth/USD added up to 7.6% in about 24 hours.
bitcoin, having hit new 19-month highs of $44,490 earlier in the week, is now worrying market participants as both eth and Solana (SOL) stole the spotlight.
$btc Binance Point
The offers were sold and completed, it seemsDecent OI cleanup here (Binance/Bybit Open Interest and Delta) https://t.co/DkWuLfD5gx pic.twitter.com/0CfnxCzL41
— Skew Δ (@52kskew) December 8, 2023
Noting bitcoin's share of the overall crypto market capitalization, popular analyst Matthew Hyland described the recent progress as a possible “false breakout.”
The dominance reached 55.26% on December 6, in line with btc price highs, the highest reading since April 2021.
“You would have to close above support to avoid; currently below”, Hyland wrote in part of the comment on X (formerly Twitter), referring to the key 54.35% mark.
At the time of writing this report, dominance was below this level, around 53.9%.
Some major altcoins took advantage of the situation, with eth/USD reaching $2,392 before seeing a modest correction of its own on the day.
SOL/USD Hit $72.88 on Bitstamp, Highest Since May 2022, Investors Say increase bullish bets on three figures entering the future.
Commenting on the current status quo, research firm Santiment argued that fear, uncertainty and doubt, or FUD, around an altcoin breakout could ultimately help bitcoin.
“Traders fear that cryptocurrency markets may be in a bull trap right now,” reasoned on December 7th.
“But while bitcoin may have halted its momentum for the moment, ethereum and altcoins are taking off once again. “FUD could push $btc to $50,000 if it rises.”
An accompanying chart showed data covering social media activity for the phrases “bull trap” and “bear trap,” referring to current cryptocurrency price action.
Keep faith in more advantages
Elsewhere, bitcoin market participants saw encouraging signs in the current btc price drop.
Related: bitcoin HODL Waves: 2020 Bull Market Buyers Now Control 16% of Supply
Popular trader Credible crypto, known for his bullish outlook on bitcoin in the current environment, argued that accumulation was underway ahead of the “next leg” of the largest cryptocurrency.
Those bids filled, then another set of bids appeared after the initial bounce that also filled (second green box) and now we have a third set of bids that appeared below the price.
Someone is clearly hoarding $btc in this fall in anticipation of the next section… https://t.co/jqc2ETyiTX pic.twitter.com/qnuo1ZRRgH
— CrediBULL crypto (@CredibleCrypto) December 8, 2023
However, as Cointelegraph reported, some believe a much larger correction is due, which has the potential to return the market to $30,000 or even closer to $20,000 before new all-time highs are reached.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
