Market Overview
The cryptocurrency market added 3.6% to its capitalization over the past seven days and around 0.6% in 24 hours, reaching $3.14 trillion. At the start of trading on Monday, there was a slight decline to $3.18 trillion, but a return to monthly highs attracted local buyers. The active growth since the beginning of the year not only took the market away from the “low” where prices had been hovering for two weeks before, but also ensured a breakout above the 50-day moving average, something we had not seen in almost three months. In the short term, we are closely monitoring attempts to consolidate the market at $3.20T. An increase in sales will confirm the transition to a bear market. The ability to grow will indicate the end of a long and relatively deep correction, paving the way for a rapid approach to highs above $4 trillion. By default, we favor a bearish scenario until proven otherwise.
surpassed the $92,000 mark, marking its fifth consecutive daily growth candle today and reaching its highest level since December 12. Last month, market participants actively sold the leading cryptocurrency in the range of $92-95 thousand, putting an end to attempts to rebound after the October-November sell-off. Has the market changed during this time? It is unlikely that it will have strengthened, without prospects of accelerated economic growth or more accommodative monetary policy.
News context
Retail investors actively bought Bitcoin in the second half of last year, while big players were passive or taking profits at October highs. Santiment calls this dynamic alarming. At the same time, there is a decline in interest in the asset in the media and on social networks.
In December, large holders sold 20,000 BTC. However, the volume of leveraged positions increased by $2.4 billion, despite a 40% drop in trading activity, notes analyst Crazzyblockk. The current market situation does not suggest that the bottom has been reached.
Long-term Bitcoin holders stopped selling for the first time since July, according to VanEck. Bitcoin’s current sideways movement amid record growth is comparable to the “calm before the storm”, which is usually followed by a rally in the crypto market, a Bull Theory analyst hopes.
According to Lookonchain, an investor with assets of $11 billion opened long positions in futures contracts on the top three cryptocurrencies worth $749 million. In October, he correctly predicted the stock market crash.
In the near future, Bitcoin and are expected to receive a significant influx of capital due to the end of the precious metals market rally, according to Garrett Jean, former CEO of the now-defunct BitForex exchange.
According to Etherscan, the Ethereum network has set a new record of 2.2 million transactions processed per day. Transaction costs have fallen to historic lows ($0.17).
Bitcoin is now 17 years old. The anonymous creator of Bitcoin, under the pseudonym Satoshi Nakamoto, launched the network of the first cryptocurrency on January 3, 2009. It was on this day that the very first block of the network, known as the Genesis block, which contained 50 BTC, was created.
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