site analysis Oil & Gold Investment online Platform - International Group Investment INC (IGI)
blog 12 05
blog
Admin
The uptrend in the crypto market extended for another day on Monday as Bitcoin (BTC) hit a fresh 2023 high of $42,165 on Coinbase amid a 135% spike in total trading volume, which increased to $94.2 billion.

Stocks started the week in the red as investors began to reevaluate the likelihood of the Federal Reserve cutting rates in early 2024 following last week’s comments from Fed Chair Jerome Powell, where he pushed back against talk of an end to rate hikes.

Multiple analysts also warned that the multi-week uptrend in stocks looked overdone, prompting them to warn of a pullback. At the market close, the S&P, Dow, and Nasdaq all finished lower, down 0.54%, 0.11%, and 0.84%, respectively.

The 10-year Treasury yield climbed 6 basis points to about 4.255%, while the DXY gained 0.43% and now trades near 103.63.

Data provided by TradingView shows that at the Monday candle open, Bitcoin surged from $39,985 to a daily high of $41,165 over eight hours, and has since entered into consolidation, trading at $41,950 at the time of writing.

BTC/USD Chart by TradingView

The early morning rally pushed “December Bitcoin futures prices [to] a new contract and 20-month high,” said Kitco senior technical analyst Jim Wyckoff.

Bitcoin futures 1-day chart. Source: Kitco

“A price uptrend on the daily bar chart is firmly in place and BTC bulls have the solid overall near-term technical advantage,” Wyckoff said. “More price upside is likely in the near term.”

“The staging for this rally started the week beginning 10/23 when BTC managed to overcome the iron-beam resistance in the $30k area,” said Julius de Kempenaer, senior technical analyst at StockCharts.com. “On the weekly chart, the next expected level of resistance is around $48k, the peak set at the end of March 2022.”

BTC/USD 1-week chart. Source: TradingView

“A small hesitation in BTC's rally is visible on the daily chart between 11/9 and 12/1 in the form of an ascending triangle,” he said. “This is a pattern with a few peaks aligned at a horizontal level. In this case, it is around $38k and a few (3) higher lows in the period. This indicates buying pressure, which eventually led to the break above $38k. This former resistance level is now expected to come back as support in case of a setback.”

BTC/USD 1-day chart. Source: TradingView

“All in all, the trend for BTC is clearly up, with a first target around $48k and support near $38k,” he said. “Looking at the bigger picture for cryptocurrencies, coins like Avalanche (AVA), Sushi (SUSHI), and Cronos (CRO)” are showing strength, “While coins like Monero (XMR), Ripple (XRP), and Litecoin (LTC) are struggling to keep up.”

“November’s risk on move accelerated on Friday, as the pace of expected rate cuts accelerated rapidly from June to March 2024,” said Mark Connors, head of research at 3iQ, in a note shared with Kitco Crypto. He pointed to Friday’s performance of the Russel 2000 as evidence, as it outperformed the Russell 1000 index by 200 bps, “while it underperformed in November by 20BPs.”

“So the weekend’s jump in gold and BTC was part of that rate cut expectation,” he said. “But BTC has more tailwinds that are outside of Fed action.” This includes “Judge Rao’s Aug. 29th decision that deemed the SEC’s argument against a spot BTC ETF as ‘unlawful.’”

“We deem Judge Rao’s decision as impactful as Nixon’s Sunday Night Massacre, when he broke the peg to gold on Aug 15, 1971,” Connors said. “Gold advanced from $42 to over $800 in the next 10 years. Today, we see BTC as digital gold for reasons shared in our 2023 Outlook and with additional catalysts that will likely drive it to our 2024 year-end $100K price target.”

BTC/USD 1-day chart. Source: 3iQ

“As the BTC price graph above demonstrates, 2022’s bad news has faded, starting with FTX’s BCY in Nov 2022, [and] culminating in the Binance settlement,” he said. “This leaves favorable court opinions and institutional interest (Blackrock, Fidelity, ARK +9) in a spot BTC ETF for the U.S., and at least two more price catalysts in 2024.”

“For these and other reasons, our research points to a longer period of price appreciation that could bring BTC through $100k by year-end 2024 based on the aforementioned court rulings and more,” Connors said.

“Recent SEC engagement with the institutions filing for spot ETFs in the U.S,” the upcoming Bitcoin halving, and the December enactment of FASB rule changes “provide additional, structural tailwinds,” he concluded. “The additional catalysts are providing support for BTC, while gold’s price sinks with bonds on the changing sentiment on rate cuts which are being pushed out again today.”

Altcoins benefit from Bitcoins gains

It was a positive day overall for the altcoin market, with roughly two-thirds of the tokens in the top 200 recording gains.

Daily cryptocurrency market performance. Source: Coin360

Bitcoin ordinals focused project ORDI (ORDI) led the gainers with an increase of 48.1%, followed by an increase of 45.2% for SuperVerse (SUPER), and 41.2% for IoTeX (IOTX). dYdX (ETHDYDX) and Fetch.ai (FET) declined by 7.1%, and Injective (INJ) fell by 6.9%.

The overall cryptocurrency market cap now stands at $1.54 trillion, and Bitcoin’s dominance rate is 53%.
Share Now