Bitcoin, Ether, Major Altcoins – Weekly Market Update December 6, 2021
The total crypto market cap erased $374 billion from its value for the last seven days and now stands at $2,186 billion. The top 10 coins were all in red for the same time period with the only exception being the newcomer – Terra (LUNA) which added 23.7 percent. Bitcoin (BTC) is currently trading at $48,100 while ether (ETH) is at $4,020.
Bitcoin closed the trading day on Sunday, November 28 at $57,300 and once again avoided a weekly close below the already established support in the $55,000-$56,000 area.
On Monday, it continued to move in the upward direction. It formed a third consecutive green candle on the daily chart and ended the session at $57,760, but still was unable to move above the short-term diagonal we drew a few reports back. Even though that line was broken in the November 7-16 period it proved to be extremely resilient to buying pressure in the rest of the time.
The Tuesday session came with an attempt from bulls to push above the mentioned zone and the 21-day EMA in the early hours of trading. The volumes, however, could not support a breakout and bitcoin fell down to $56,970 in the evening, closing in red.
The leading cryptocurrency ended the month of November with a 7.2 percent loss.
The mid-week session on Wednesday was more or less the same as the previous one – BTC bulls quickly initiated a strong move to the upside just to see it fully retraced later in the session.
On Thursday, December 2 bears took over full control which resulted in the formation of a short red candle to $56,550.
The Omicron COVID variant spread combined with the expected bond-buying program tapering from the United States FED started to impact the risk assets and the cryptocurrency market in particular.
This became visible on Friday when BTC lost 5.2 percent of its value and dropped down to $53,558 to stop right at the weekly uptrend line. The selling volumes were increasing which suggested a more downside pressure might be expected.
On the first day of the weekend, the entire market was colored in red. The BTC/USDT pair fell 21 percent to hit $41,900 during intraday. The altcoins were bleeding with some of them posting 35-40 percent of losses for the day triggering a series of liquidations across the major exchanges. More than $1.8 billion of long positions were lost in one day.
BTC partially recovered in the evening, but still closed in red at $49,180.
On Sunday, it remained flat, ending the seven-day period with a 14 percent decrease.
The leading cryptocurrency is trading even lower as of the time of writing this market update – $48,100.
The Ethereum Project token ETH registered its second consecutive day in green on Sunday, November 28 after touching the weekly support level at $3,900 for the ninth time in the last 30 days.
It ended the previous seven-day period one percent increase.
The trading day on Monday started with a break above the 21-day EMA on the daily timeframe and the Point of Control line as shown on the Volume profile indicator. ETH increased by 3.7 percent end closed the day at $4,437.
The Tuesday session was no different and the price of ether continued to surge. It climbed further up to hit $4,632 at the candle close. It is worth noting that the coin was already trading above the important support/resistance area near $4,400 – $4,450.
The ETH/USDT pair closed the month of November with an 8.4 percent of a price increase.
The third day of the workweek and first for December started with a new local high – $4,770 followed by a quick retrace down to $4,586.
On Thursday, December 2, the Ethereum token fell to $4,508 unable to resume the uptrend.
Then on the last day of the workweek, it lost 6.2 percent to hit the weekly uptrend line right above $4,100. This zone was previously a solid horizontal S/R with significant volumes backing it as per the VPVR.
The weekend of December 4-5 started with a flash crash on Saturday. ETH dropped down to $3,549 erasing 17 percent of its valuation in a matter of minutes. It quickly recovered in the evening part of the session but the damage was already done.
On Sunday, it bounced up to $4,223.
As of the time of writing this market update, the ether is trading significantly lower – at $4,020.
- Polygon (MATIC)
The popular Ethereum layer 2 sidechain once again started moving in the upward direction.
MATIC is expected to perform well in the months to come mainly because of its recently announced $100 million fund to support gaming, NFT, and metaverse developments in its ecosystem. This, combined with the ZK-Rollup scalability improvement implementation gives traders a solid fundamental base to bet heavily on the Polygon token.
The MATIC/USDT pair added 25 percent to its value during the last week breaking about the previous all-time high candle close on the weekly timeframe. It peaked at $2.4 on December 3 and hit the upper boundary of the uptrend channel on the daily timeframe.
The coin is currently trading below its weekly support and will be looking for potential stability near the 21-period EMA around $1.5 where the lower boundary of the mentioned channel is located.
Altcoin of the Week
Our Altcoin of the week is RMRK (RMRK). This cryptocurrency is described as a new-generation NFT platform, hosted on the Kusama blockchain (Polkadot’s sister canary network). As per the official webpage, RMRK is a set of standards on Kusama that compose five “NFT lego” primitives which when put together allows a user to create NFT systems of arbitrary complexity.
RMRK was one of the few digital assets that closed the previous week in green. The token added 52 percent and moved up to #193 on CoinGecko’s Top 100 list with a total market cap of approximately $395 million.
The coin peaked at $69 on December 3 and since then has retraced to $41, deleting 40 percent of its valuation.
Still, RMRK tripled in value for the month of November and is now trading close to potential support in the $35 – $40 zone.