Bitcoin falls marginally, Altcoin rally cools off

Crypto market overview: The downward trend in the crypto market continued on Tuesday as Bitcoin fell by around 0.7 per cent in the last 24 hours. Even the altcoin rally seems to be cooling off. ETH is finding it challenging to hold onto the support at $2,000, with its third unsuccessful attempt in 15 days to break the $2,100 barrier. 

The Crypto Fear and Greed Index recorded a minor gain of two points, driven by increasing trade volume in the crypto market. The market still remains in the greed zone, indicating a positive outlook for investors. 

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While talking to Republic, Parth Chaturvedi, Investments Lead, CoinSwitch Ventures, shared insights into the minor dip observed in the market yesterday. Chaturvedi said, “The overall investor sentiment towards the crypto market seems to be taking a breather as the market trades flat. In the last 24 hours, BTC fell below the $37,000 mark before correcting upwards and regaining the price above $37,000. Additionally, data from Glassnode highlight that BTC’s short-term holders have reached a historic low after observing the the most significant divergence ever witnessed between its long-term holders (LTHs) and short-term holders (STHs). This may mean that long-term investor confidence in BTC seems to be maintained, if not furthered.”

“In parallel, another report from CoinShares highlighted that in the last week, crypto investment funds experienced their highest net inflows of the year, mirroring the 2021 bull market. The ongoing anticipation of a spot bitcoin (BTC) ETF continues to attract investors,” Chaturvedi added.

Rajagopal Menon, Vice President, WazirX said, “Bitcoin is currently near $37,000, with a slight decrease in the last 24 hours, while Ethereum remains above $2,000. Analysts predict a bullish trend for Bitcoin, with projections suggesting a potential surge to $57,000. Ethereum is experiencing a resurgence, aiming to reclaim its peak of $4,800, signalling renewed bullish sentiment.”

“The Grayscale Bitcoin Trust (GBTC) discount to Net Asset Value (NAV) has narrowed to its smallest since July 2021, indicating renewed investor confidence. Additionally, there's growing optimism about the potential approval of a Bitcoin ETF, evident in substantial fund inflows into cryptocurrency-related investments,” added Menon. 

Sudeep Saxena, Co-Founder, Coin Gabbar talked about the resilience in Bitcoin trading volume and recent consolidation levels for the leading crypto token. Saxena said, “Despite regulatory scrutiny and enforcement actions in the cryptocurrency industry, Bitcoin (BTC), the foremost cryptocurrency by trading volume, has displayed resilience, maintaining consolidation within the $36,500 to $38,000 range. On November 27, Bitcoin's price dipped below $37,000 as bulls faced challenges in countering bearish pressures. Ongoing discussions on Spot Bitcoin ETF approval remain a focal point in media headlines.”

Shivam Thakral, CEO, BuyUcoin also underlined the current market sentiment with a majority of altcoins registering minor losses in the last 24 hours. Thakral said, “The overall crypto market cap dipped to the $1.41 trillion mark with Altcoins witnessing a major downward trend. Crypto heavyweights like BTC and ETH showed immense stability trading above the $37,000 and $2000 marks respectively. The crypto market is going strong as the regulatory environment is evolving rapidly in the US. The market is expected to remain stable owing to favourable macroeconomic conditions.”

Crypto price prediction

Sharing the next resistance level for Bitcoin Edul Patel, CEO, Mudrex, said, “
To re-establish positive momentum, Bitcoin will now need to surpass the $37,500 level or face potential support near $36,800. Despite being 45 per cent below its all-time high, Bitcoin has exhibited a robust year-to-date increase of 123 per cent. Meanwhile, the collaboration between Metaco, the Swiss digital assets custody firm acquired by Ripple earlier this year, and HSBC has sparked enthusiasm among XRP supporters. Ethereum, on the other hand, has been trading above the $2,000 threshold.” 

On the other hand, Vikram Subburaj, CEO, Giottus, gave hints for the next target for Bitcoin to achieve. Subburaj said, “Bitcoin traded above $38,000 briefly last week with hopes of a push towards $40,000 on market sentiment. However, the asset has fallen back to its short-term consolidation range near $37,000 and now encounters strong resistance at $37,400. If the asset fails to take out $38,000 in the near term, a retracement back to $34,000 is likely. In that scenario, key altcoins including Ethereum, Solana and XRP will shed further as their weekly RSIs are in the overbought territory. This will likely give a boost to Bitcoin’s dominance (currently at 52.8 per cent).” 

Sharing the support levels for most important altcoins, Subburaj said, “Key downward targets for altcoins to hold as a support are Ethereum ($2,000), Solana ($50) and XRP ($0.58).”