Bitcoin and Ether Market Update December 9, 2021
Total crypto market cap added $157 billion to its value for the period since Monday and now stands at $2.33 trillion. The top ten coins are mostly in green for the last 24 hours with XRP (XRP) and Terra (LUNA) leading the pack with a 10.0 and 6.6 percent increase respectively. At the time of writing bitcoin (BTC) is trading at $49,111. Ether (ETH) is at $4,300.
Bitcoin closed the trading day on Sunday, December 5 at $49,300, remaining flat for the session in terms of price movement. Still, it registered “just” 13.9 percent loss on a seven-day basis, after somehow managing to bounce from the $42,000 low that was hit 24 hours earlier.
The Relative strength indicator (RSI) hit oversold values not seen since the May 2021 market crash.
The BTC/USDT pair started the new week with a drop to $47,000 on Monday morning. Bulls, however, took quick action and pushed the price up to $50,400 in the evening part of the session to close in green.
Traders were divided in their analysis of the market behavior and the current price action with some pointing out a healthy correction while others were expecting more downside and selling pressure in the coming days and weeks.
The Tuesday session was not bad for buyers either. The price of bitcoin climbed up to $51,950 during intraday, but most of the gains were retraced before the daily candle close.
The mid-week trading day on Wednesday came with a re-test of the newly established short-term support near $49,000. Bears failed to break the level, which resulted in another flat close for BTC.
What we are seeing on Thursday morning is a second consecutive attempt to push the price below the mentioned horizontal line. There is a potential bearish consolidation pattern on the daily chart (bearish rectangle).
The Ethereum project token ETH has been performing significantly better than BTC recently. First, the coin fully recovered from the December 4 drop, and secondly, it managed to go back above the weekly uptrend line.
The coin closed the previous week at $4,200, 19.2 percent above the $3,500 low registered during the flash crash.
It was 2.6 percent down on a weekly basis. It is worth mentioning that ETH was trading in the extremely wide range between $3,500 and $4,700 in the last seven days.
On Monday, the ether climbed 3.6 percent up to reach $4,345 but not before hitting once again the weekly support near $3,900 during intraday trading.
The Tuesday session came with a short pullback to $4,300 – the zone where the 21-day EMA and the VPVR’s Point of Control were both located at that point in time.
The third day of the workweek saw a strong move to the upside – a 3.2 percent jump to $4,439. ETH was outperforming bitcoin as the ETHBTC pair hit a 3.5 year high.
As of the time of writing this article, the leading altcoin is trading below $4,300 in the aftermath of what many considered a de-facto default of the Chinese housing giant Evergrande.