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(Kitco News) – Global asset prices faced a second straight day of losses on Friday as negative news about the US economy continued to emerge, prompting investors to become more bullish and wait for more attractive market conditions.
The S&P, Dow and Nasdaq all closed the day lower, down 1.11%, 0.85% and 0.97% respectively, leading to the US stock market’s second straight weekly loss.
Data from TradinView shows that Bitcoin (BTC) price was in a sell-off as US markets opened, dropping from support at $17,400 to an afternoon low of $16,750 before bulls bid above $16,800.
BTC/USD 4-hour chart. Source: TradingView
Despite the increase in volatility, little has changed in the macro picture for Bitcoin at the moment, as it is still trading in the range it has been in since early November. Kitco’s senior technical analyst called the morning drop “a typical bearish correction later this week after hitting a five-week high Wednesday.”
According to Wyckoff, “prices are still bullish on the daily chart” and “Bulls still have a slight overall near-term technical advantage.”
Crypto Twitter is going down
As a result of Bitcoin’s struggles over the past few days, sentiment on crypto Twitter has plummeted, with many now speculating on the possibility of a break below the $15,600 and $14,600 support levels.
This script has worked well for the past few weeks.
We have “almost” reached the 0.5 Fib line.
What comes after that?
IF: $BTC: can’t keep $17,000 get ready $15,600 or even $14,600.
It is what it is, but see it as an opportunity to buy incredibly cheap. pic.twitter.com/jPV5WmDjOl
— 𝕄𝕦𝕣𝕚𝕒𝕒𝕒𝕒𝕒𝕒𝕚𝕖 🧲 (@el_crypto_prof) December 16, 2022
But not everyone took a negative view, including crypto trader StanTrader, who posted the following tweet highlighting a potential “long swing” play for BTC.
— StanTrader (@Stanley_Trader) December 16, 2022
Altcoins are seeing big losses
Altcoins largely followed Bitcoin’s lead lower, with less than 10 non-stablecoin tokens in the top 200 seeing gains on the day, while the rest posted losses.
Daily performance of the cryptocurrency market. Source: Coin360
Top performers for the day include Toncoin (TON), Magic (MAGIC) and Request (REQ) which gained 5.74%, 4.31% and 3.31% respectively. The biggest losers of the day were ABBC Coin (ABBC), Energy Web Token (EWT), and TrustWallet Token (TWT), which lost 12.04%, 9.96%, and 9.83%, respectively.
The total cryptocurrency market cap is now $822 billion, and Bitcoin’s dominance rate is 39.6%.
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