Bitcoin (BTC) struggled to stay above $43,000 through December 8 as a rise in altcoins put Ether (ETH) in the spotlight.
BTC/USD 1-hour chart. Source: TradingView
ETH and SOL are strengthening as Bitcoin needs liquidity
Data from Cointelegraph Markets Pro and TradingView showed continued BTC price consolidation as ETH/USD rose to 7.6% in about 24 hours.
After hitting a new 19-month high of $44,490 earlier in the week, Bitcoin is now worrying market participants as both ETH and Solana (SOL) are gaining attention.
$BTC Binance Spot
Apparently the bids were sold and fulfilled
Neat OI wipe here (Binance / Bybit Open Interest & Delta) https://t.co/DkWuLfD5gx pic.twitter.com/0CfnxCzL41
— Skew Δ (@52kskew) December 8, 2023
Looking at Bitcoin’s share of the total crypto market cap, well-known analyst Matthew Hyland described the recent advances as a possible “false breakout.”
Dominance reached 55.26% on December 6, in line with BTC price highs – the highest since April 2021.
“It would have to close above support to avoid; currently below,” Hyland wrote in a comment on X (formerly Twitter), referring to the key 54.35% mark.
At the time of writing, dominance was lower at around 53.9%.
1-week Bitcoin cryptocurrency market cap dominance chart. Source: TradingView
Some major altcoins took advantage of the situation and ETH/USD reached $2,392 before a slight correction on the day.
ETH/USD 1-week chart. Source: TradingView
SOL/USD hit $72.88 on Bitstamp, its highest level since May 2022, as investors increased their bullish bets for triple digits in the future.
SOL/USD 1-week chart. Source: TradingView
Commenting on the current status quo, research firm Santiment argued that fear, uncertainty and doubt (FUD) surrounding an altcoin breakout could ultimately help Bitcoin.
“Traders fear that #cryptomarkets may currently be in a bull trap,” it said on December 7th.
“But while Bitcoin may have stalled its momentum for now, Ethereum and altcoins are booming again. FUD could push $BTC to $50,000 if it rises.”
Crypto social media volume data. Source: Santiment/X
An accompanying chart showed data covering social media activity for the terms “bull trap” and “bear trap” related to current crypto price action.
Keeping faith on the rise
Elsewhere, Bitcoin market participants saw encouraging signs in the current BTC price decline.
Related: Bitcoin HODL Waves: Buyers in the 2020 Bull Market Now Control 16% of Supply
Popular trader Credible Crypto, known for its bullish view on Bitcoin in the current environment, argued that accumulation is continuing ahead of the “next surge” of the largest cryptocurrency.
These bids were filled, then after the first jump another set of bids appeared that was also filled (second green box), and now we have a third set of bids that appeared just below the price.
Clearly someone is accumulating $BTC during this decline in anticipation of the next phase… https://t.co/jqc2ETyiTX pic.twitter.com/qnuo1ZRRgH
— CrediBULL Crypto (@CredibleCrypto) December 8, 2023
However, as Cointelegraph reported, some believe a much larger correction is on the way, with the potential to take the market back to $30,000 or even closer to $20,000 before setting new all-time highs.
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.
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