Crypto market valuation falls by 2.2%, Bitcoin remains rangebound

Crypto market overview:  The overall crypto market is currently at $1.56 trillion with a 2.2 per cent decline in the last 24 hours along with BTC and ETH trading at $41,061.95 and $2,166.99 levels respectively.

With this decline, the market seems to be undergoing a slight correction. The top 20 cryptos by market cap are trading in the red with stablecoins as exceptions. The stalling price action within the crypto market could be due to profit-taking by investors over the weekend.

Following a muted weekly performance, BTC continues with its rangebound performance between $41,000 - $43,000 over the weekend and the last 24 hours. 

While talking to Republic Business, CoinDCX Research Team said, “In the last three days, BTC faced a nearly 5 per cent decline and is currently trading below the 20 Exponential Moving Average (EMA) daily, hovering slightly above the support level at $40,600. If BTC fails to rebound from the 20 EMA daily, it may experience a further drop to bottom levels of around $38,000. Similarly, ETH is below the 20 EMA daily, displaying the bearish sign. If it does not initiate a recovery, the key level is $2,130, and breaking below this might lead to a descent to $2,020.”

“Following the initial shakeout, resilient investors are likely to re-enter the crypto market, given the ongoing bullish macro environment for risk assets. The Federal Reserve's decision to pause rate hikes and potential rate reductions in 2024 could contribute to increased demand for crypto,” CoinDCX added. 

Citing the support for anti-money laundering as a driver for Bitcoin’s bearish tone, Rajagopal Menon, Vice President, WazirX said, “The digital asset anti-money laundering act in the US has received support from many stakeholders but it has also set Bitcoin’s price back while it was already undergoing a correction. Both Ethereum and Bitcoin indicate overbought conditions. However, their long positions of liquidity continue to be a concern.” 

“Bitcoin’s ETF approval has also enabled a rally for altcoins as investors start accumulating tokens ahead of the event. Tokens such as Bob Ocean Protocols are indicating a steady rise with 24.19 per cent and 13.75 per cent respectively,” added Menon. 

Edul Patel, CEO, Mudrex also shared his market insights with Republic Business. Patel said, “Bitcoin is currently in a consolidation phase above the $40,000 level following weekend profit-taking. The potential for a move towards $42,700 exists if buyers can maintain control above the current level. With neither buyers nor sellers dominating and the rate positioned away from key support and resistance levels, BTC is likely to trade within the $41,000 to $43,000 range in the coming days. On the weekly chart, bulls couldn't sustain the rise after a bullish candle, but BTC has held above the$40,000 level. Failure to surpass this level may lead to support being tested at $39,000.”

Sudeep Saxena, co-founder, CoinGabbar, said, “On Monday, BTC saw a 2 per cent drop, linked to an increase in regulatory concerns impacting the enthusiasm of buyers in both the BTC and broader cryptocurrency market. The mounting support for Senator Warren's Digital Asset Anti-Money Laundering Act raised anxieties, possibly contributing to the dip below the $41,000 threshold.”

Parth Chaturvedi, Investments Lead, CoinSwitch Ventures underlines the increasing investor confidence in the Bitcoin indicating a positive outlook for 2024. Chaturvedi said, “As per data from analytics firm IntoTheBlock, on-chain data signals an inflow of $860 million worth of Bitcoin into crypto exchanges during the last week, the highest since March this year. However, investor confidence in BTC continues to strengthen due to the common belief that BTC is primed for a strong 2024. The market is most likely to pick up again.”

Shivam Thakral, CEO, BuyUcoin, expects some dip in the crypto market as the holiday season nears. Thakral said, “ As we approach the holiday season, we can expect some dip in trading activity due to which the market may remain at current levels. The Bitcoin ETF approval clock is ticking and we can expect a crypto super cycle in 2024 once the final approval is achieved. The interest rate cut by the US Fed may also drive the momentum in the crypto market in 2024.”