The global cryptocurrency market cap fell 0.5% to $818 billion yesterday evening. However, 7 Bitcoin analysts warned.
Bitcoin analysts uneasy for the weekend
Major cryptocurrencies were relatively robust, despite the tremor seen in other risky assets during intraday trading. cryptocoin.com As we mentioned, the S&P 500 and Nasdaq closed the day with 1.2% and 1.5% losses, respectively. U.S. stock futures were slowly rising at the time of this writing. Cryptocurrency analyst Justin Bennett said that Bitcoin is doing well compared to the S&P 500 index. He said that Bitcoin “bulls should take $16,900. That’s the key to $17,300.” said.
On Thursday, Kansas City Federal Reserve Chairman Esther George said she believes the US Federal Reserve should raise interest rates above 5% and hold them until there is solid evidence that inflation is falling. “Despite the hedging session on Wall Street, Bitcoin has changed little. “The Fed may need to do more walking and it doesn’t look like it’s sending these cryptocurrencies down,” said Edward Moya, senior market analyst at OANDA. Moya also noted that shares of crypto-focused bank Silvergate Capital Corp fell on Thursday. “The bank had to liquidate its assets at a loss to cover the $8.1 billion withdrawals,” the analyst said.
The workforce will be reduced
Genesis Trading, a subsidiary of Digital Currency Group (DCG), which also owns Grayscale, said it will cut its workforce by 30%. The company has already frozen refunds for all customers. Investors will be waiting for the December jobs report, which will be released on Friday. Michaël van de Poppe told his Twitter followers that ‘they should be fine’ if Bitcoin stays above $16,600. Analyst ‘Grayscale, it’s a tough weekend with tomorrow’s unemployment data and stuff like that. I wouldn’t go crazy with leverage,” he said.
Market intelligence platform Santiment said that although Bitcoin whales were ‘sold’ in 2022 due to the ‘retracement’ of cryptocurrency markets, they were not cashing out in fiat currencies. ‘The 2021 profit [stablecoin] stays in their wallets.’ The platform tweeted that new major addresses of Tether (USDT), USD Coin (USDC), Dai (DAI) and Binance USD (BUSD) stablecoins have ‘exploded’.
Rate hike and Bollinger Bands
The labor market remains tight, which could lead the Federal Reserve to raise interest rates. Data from TradingView shows that the price of Bitcoin (BTC) briefly dropped to the daily low of $16,752 after the data was released, but the bulls were able to break above the $16,850 support to leave the price relatively unchanged on the 24-hour chart. managed to get out. According to Kitco senior technical analyst Jim Wyckoff, the morning retrace was considered a ‘slight corrective retracement from recent gains’. Also, the bulls managed to gain some momentum this week despite the sideways and choppy trading. For now, “Traders are waiting for a spark to ignite more volatile price action,” Wyckoff said.
Marcus Sotiriou, a market analyst at digital asset broker GlobalBlock, provided additional information, highlighting that trading in the range between $16,200 and $17,100 is causing the Bollinger Bands on the Bitcoin chart to contract. “Tight Bollinger Bands show how volatility has decreased significantly,” Sotiriou said. “Historically, when Bollinger Bands contract, it results in a big move for the price. The last time the Bollinger Bands were this tight was in July 2020, and that was before Bitcoin’s 5,000% move to the upside. This has led many to believe that a big movement is coming soon.” said. Finally, multiple analysts on Twitter noticed the Bollinger Band development on the Bitcoin chart, including model analyst Trader Tardigrade, who tweeted below that similar developments in the past have led to bullish rallies for top crypto. Not everyone agreed that a bullish move was imminent. However, many noted that Bollinger Bands better predict the upcoming volatility and that the BTC price is more likely to move down rather than up.