Crypto market remains flat, Bitcoin registers minor dip

Crypto market overview: The crypto market has remained relatively stable in the last 24 hours with some leading tokens facing selling pressure on profit booking. Bitcoin has registered a 0.39 per cent decline while Ethereum dipped by close to 1.2 per cent. However, the overall market capitalisation for the market surged by 3.89 per cent to reach $1.61 trillion. 

Near Protocol, Stacks, and Mina were among the top-gaining cryptocurrencies in the last 24 hours while BONK, BitTorrent, and Cardano were among the top losers. 

Talking about the selling pressure on Bitcoin, CoinSwtich Markets Desk said, “The crypto market seems to have been range-bound with a downward bias in the last 24 hours. BTC underwent slight selling pressure after it crossed the $43,000 mark. However, on-chain data shows that Bitcoin mining hashrate has continued its uptrend and even reached a new all-time high. This translates into a positive sentiment building within the miners, that can also trickle into price action.”

“In other news, SOL saw a 400 per cent growth in user activity in Q4, outpacing Ethereum. A report by Messari explains the reason for the recent surge in new demand for Solana is due to the series of token airdrops completed by some protocols housed within the SOL network,” CoinSwtich added. 

Rajagopal Menon, Vice President, WazirX also shared his market insights with Republic Business. Menon said, “Bitcoin and Ethereum experience short-term price adjustments amidst an optimistic market sentiment. The expectation of a spot bitcoin ETF, upcoming Bitcoin halving, and the involvement of institutional investors are poised to temporarily halt the liquidity of long positions. Hodlers are expected to accumulate tokens in anticipation of potential higher gains.”

“Michael Saylor's endorsement of the spot BTC ETF as Wall Street's most significant event since the S&P Index has added to the enthusiasm surrounding Bitcoin,” added Menon. 

Highlighting the consolidation of Bitcoin CoinDCX Research Team said, “BTC and ETH have been trading within a sideways range for the past few days. From a technical perspective, BTC is consolidating between the key support at $40,600 and resistance at $43,400. Currently, it is holding slightly above $42,400 and is maintaining a position above the 20 EMA D, indicating a continued bullish sentiment unless a major reversal sign occurs.”

“On the other hand, ETH appears comparatively weaker than BTC, hovering slightly above the key support level at $2,130-50. It is following a downtrend sideways channel, characterised by lower lows and lower highs. Additionally, ETH is below the 20 EMA D for the first time in the last two months, potentially signalling a short-term bearish trend if recovery doesn't occur,” added CoinDCX.

Altcoins are displaying mixed performance as BTC and ETH trade within their respective ranges. 

Sudeep Saxena, Co-founder, CoinGabbar, highlighted the market volatality saying that the market may take its time before moving towards another strong rally. Saxena said, “Bitcoin's price made an upward push, aiming to surpass the $43,500 resistance level, but it faced a setback, leading to a correction with a test of the $41,800 support zone. The market has been marked by increased volatility since the second week of December, creating a sense of uncertainty. Nevertheless, this period of consolidation comes after an eight-week rally, indicating that buyers might be taking a pause before a potential next upswing.”

Future outlook for crypto

Edul Patel, CEO, Mudrex told Republic that Bitcoin is experiencing fluctuations between $41,800 and $43,400 due to profit-booking. Patel also mentioned that bullish sentiments are dominating the overall market, driven by developments and anticipation around the spot Bitcoin ETF.

Vikram Subburaj, CEO, Giottus, shared the list of altcoins to watch out for today. Subburaj said, “Bitcoin’s key support levels are at $40,750 and $38,900 while $42,000 is likely to hold first. Key altcoins - Ethereum, XRP, Solana and Cardano - have shed their yesterday gains with BNB being the standout performer among the top 10 crypto assets with a 2 per cent daily gain. Short-term upside targets for key altcoins are Ethereum ($2,225), BNB ($265), Solana ($78), Cardano ($0.6), and Polygon ($0.8).”