Bitcoin price has been largely unchanged in the past 24 hours as buyers continue to try to make up some of last weekend’s losses. Some short-term traders are buying on the downside while others remain cautious on crypto prices for the next month. At the time of writing, BTC is changing hands at $ 50,312.
BTC / USD 4-hour chart | Source: TradingView
Bitcoin price continues to stabilize at around $ 50,000
Bitcoin is around $ 50,000 as the crypto markets closely watch CEOs of six major crypto firms share their views on regulation with the House Financial Services Committee USA. At the time of publication, the trading volume on the major central stock exchanges has declined again.
For now, the cryptocurrency remains above the USD 46,000 support, potentially stabilizing short-term pullbacks. Buyers will need to cross the $ 55,000 resistance to meet additional upside targets. Momentum signals are improving on the intraday chart, suggesting that buyers may continue to operate around current support levels. And the daily chart’s Relative Strength Index (RSI) is the most oversold since late September, before prices rebounded.
Bitcoin is stuck in a short-term downtrend defined by lower prices over the past month. However, price indicators suggest that selling pressures may slow during the Asian trading day. This means that the intraday volume on the 4-hour chart could rise around the 100-period moving average (currently around $ 54,500).
“During Tuesday’s close of trading, it was encouraging that Bitcoin showed the largest difference between market inflows and inflows since late October. On Sunday there was a net outflow of 40,995 BTC, implying less risk of a market sell-off,” said Santiment.
The source: mood
During the weekend sell-off, the Bitcoin Fear & Greed Index fell to its lowest level since late July. Some analysts see a contrary signal in this indicator, suggesting that buyers may buy BTC again if the price drops. Previous readings of Extreme Fear preceded similar bull runs in August and October.
Crypto Fear and Greed Index as of December 9th | Source: Option.me
From a technical standpoint, the recent sell-off reflects a loss of medium-term momentum, which served as an impetus to reduce exposure to BTC and cryptocurrencies. However, Ether’s aftermath performance is unusual in a market where traders are wary of riskier assets. In particular, ETH spent a good portion of the day holding over $ 4,400.
The ETH / BTC ratio broke out of a multi-month range after a sharp break above 0.08 on December 4th. The trend has continued and is at levels not seen since early 2018.
Elsewhere, Polygon (MATIC) is up around 25% in the past week, compared to BTC’s 11% decline over the same period. The increase came as more users became aware of Polygon’s lower cost, efficiency and scalability. There is also speculation about an interesting announcement planned for Thursday at the virtual polygon “zk day”.
While some DeFi tokens are correlated with ETH, Metaverse tokens such as The Sandbox (SAND) and Decentraland (MANA) correlate less with ETH. The total crypto market cap is $ 2.388 trillion and the dominance of bitcoin is 39.9%.
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