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Updated January 18th, 2024 at 11:36 IST

Bitcoin continues to consolidate, altcoins dips marginally

This week, BTC has experienced relatively subdued price action, mainly fluctuating between the $42,000 and $43,000 range.

Business Desk
Bitcoin
Bitcoin | Image:Republic
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Crypto market overview: Bitcoin and other leading cryptocurrencies have traded in a close range in the last 24 hours with ETH recording a 1.73 per cent decline and Solana gaining close to 1 per cent. The market capitalisation of cryptocurrencies has seen an uptick of 0.49 per cent while the market cap of Bitcoin dipped by 0.29 per cent in the last 24 hours. 

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In other developments, Donald Trump, former President of the United States, has made it clear that he will never allow the development of Central Bank Digital Currency in the country. The Crypto Fear and Greed Index has also remained relatively unchanged with a minor uptick of 3 points to reach 63 points. 

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Image credit: Alternative.me

Sharing the overview of Bitcoin’s performance with Republic Business, CoinDCX said, “This week, BTC has experienced relatively subdued price action, mainly fluctuating between the $42,000 and $43,000 range. Following the approval of the BTC spot ETF, there's been a trend of GBTC holders exiting, yet the overall market still sees a rise in net inflows, indicating sustained demand.”

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“From a technical perspective, there's a notable bullish indicator with the 50-week simple moving average (SMA) crossing above the 200-week SMA, a first in recorded history. However, upon closer examination, the previous weekly close appears bearish, contributing to mixed signals. Crucially, the $40,000-$41,000 range serves as a significant support level for BTC,” added CoinDCX. 

Rajagopal Menon, Vice President, WazirX said, “Bitcoin’s moving averages for the last 10 days indicate a decline in its price amidst a larger bearish sentiment with selling pressure from investors. However, a positive development is the occurrence of a 'golden cross' between the 50-week simple moving average (SMA) and the 200-week SMA, signalling a strong indication of an upcoming upward price trend.” 

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Bitcoin’s consolidation

Highlighting the consolidation phase of Bitcoin, CoinSwitch Markets Desk said,  “With BTC consolidating in a tight range for a fifth-day straight post the ETF development, altcoins have started to show weakness. With Ethereum going up in the last few days, even ARB and LDO, which were among the top gainers, have posted losses in the last 24 hours.”

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Edul Patel CEO of Mudrex, said, “Bitcoin is currently consolidating around $42,000, witnessing profit-taking and heightened investor interest in investment products post the approval of spot ETFs. Bears are active around $43,500. BTC faces resistance at $43,250 and has support at $42,120. In Ethereum news, developers have successfully implemented the Dencun upgrade on the Goerli testnet today, and Ethereum is trading at $2,500.”

Shivam Thakral, CEO of BuyUcoin, said, “The Bitcoin ETF inflows are nearing the $1 billion mark, which according to the experts, qualifies for a successful listing. We can expect a less volatile Bitcoin after the listing of ETFs as it’s a regulated financial product now.”

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Sharing the future outlook for leading cryptocurrencies today, Vikram Subburaj, CEO, Giottus said, “Bitcoin continues to maintain a stable position above $42,500, in line with a robust market sentiment. With its RSI at 45 and the stochastic oscillator at 38, BTC could undergo a phase of consolidation, before retesting the $44,000 mark. Bitcoin dominance is marginally up today as altcoin rallies take a breather. Key altcoins, including BNB, Cardano and Ethereum, have shed 2-3 per cent today while Solana continues to hold the $100 mark.  Short-term upside targets are Bitcoin ($43,500), Ethereum ($2,600), Solana ($105), Cardano ($0.58) and Avalanche ($38).” 

In other news, while stablecoin issuer Circle had recently filed for an IPO in the United States, they have now tied up with the biggest oracle provider Chainlink (LINK, -3.1 per cent) to also allow people to do easy and convenient cross-chain swaps.

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Published January 18th, 2024 at 11:36 IST

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