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(Kitco News) – Last week’s Fed-inspired weakness in global financial markets continued to weigh on asset prices on Monday, with both crypto and traditional markets falling throughout the trading day as traders acknowledged the fact that the is to be a Santa Claus rally. in 2022.

After double-week losses in the stock market, the S&P, Dow and Nasdaq started the last full trading week of 2022 on shaky grounds, falling on the day to close the day in the red, up 0.90%, 0.49% and 1 with .49. %, accordingly.

After holding above $16,700 for most of the morning, Bitcoin bears overwhelmed the bulls and pushed the top crypto down to a daily low of $16,520, before bullish gains came in to take it back above $16,600, TradingView data shows.

BTC/USD 4-hour chart. Source: TradingView

Kitco Senior Technical Analyst Jim Wyckoff noted BTC’s early morning weakness in his daily Bitcoin update, noting that “strong selling pressure late last week. [has] on the daily chart, the price trend was negated.”

As a result of today’s bearish move, “The bulls have lost their overall near-term technical advantage and the bears now have some momentum on their side,” Wyckoff said.

Bitcoin has had a rough week

Further insight into Bitcoin’s price action was provided in Eight Global’s latest macro update, which kicked off by saying “BTC has had a very rough week.”

“Price made a bearish test of the lower range, followed by a strong reaction,” said Eight Global analysts, warning that “As long as the price is below the lower range, we are likely to go much deeper based on the weekly timeframe.”

According to the update, the monthly demand found near $10,000-$12,000 will serve as a strong support level, but “a lot will have to happen to push the price towards that $10-12k zone as we still have some strong support levels below.” within the terms. “.

A look at Bitcoin’s four-hour chart shows the high the crypto is trading between $15,600 and $18,200, the range between which it fluctuated last week at the time of Fed Chairman Jerome Powell’s rate hike announcement.

BTC/USD 4-hour chart. Source: Eight Global

“This caused the price to fill in perfectly [fair value gap] up to 16.5 thousand dollars. Therefore, we expect a jump to $17.2-17.5k before a lower high in that zone,” Eight Global said. “If it does play out this way, we expect the price to find support at the first support level around $16.1-16.3k, or a bit deeper at $15.5-15.8k, which is also where the lower range lies,” it concluded. the update.

It’s going rough in the altcoin market

The woes facing the crypto market were highlighted by the poor performance of altcoins, as even the stable metals were in the red in Monday’s trading.

Daily performance of the cryptocurrency market. Source: Coin360

However, several tokens managed to post positive gains during the day despite the widespread weakness. This includes Voyager (VGX), which gained 23.2% after it was revealed that cryptocurrency exchange Binance US will buy its assets for 1.022 billion, BinaryX (BNX) 17.31% and XDC For Network (XDC), by 9.45%. )

The total cryptocurrency market cap is now $799 billion, and Bitcoin’s dominance rate is 40%.


Disclaimer. The views expressed in this article are those of the author and may not reflect their views Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. Trading commodities, securities or other financial instruments is not brokerage. Kitco Metals Inc. and the author of this article shall not be liable for any loss and/or damage arising from the use of this publication.

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