The end of November witnessed a sharp decline in trading volumes, casting a shadow over Bitcoin’s (BTC) efforts to retain its foothold at the $90,000 benchmark. Although there were attempts to surpass this critical resistance on Friday’s market open, BTC could not achieve this objective. Due to a holiday, reduced trading activity has resulted in cryptocurrencies experiencing more lateral and downward trends.
Has Bitcoin Lost Its Grip?
Bitcoin prices slipped to $80,900 on November 21 and have struggled to reach $90,000 for several days. Despite being trapped in a tight band, the anticipated boost from ETFs hasn’t materialized. On November 28, Bitcoin saw a net inflow of merely $78 million, while IBIT documented a more significant outflow of $113 million during a shorter Friday trading session.
The reluctance from investors concerning ETFs and weak demand in spot markets are evident. The recent expiration of a $15 billion options contract predicted a dull atmosphere until the Federal Reserve meeting. While unforeseen developments may arise in the new week, present sluggishness and unsuccessful resistance tests point towards the possibility of descending to $88,000 as the week ends.
What’s Happening with Altcoins?
AVAX initially showed positive divergence but quickly retraced to $14 following quick profit-taking. Simultaneously, SOL is struggling to hold onto $135, while XRP is working its way back to its $2.2 support level. Ethereum (ETH) has slipped below $3,000, mirroring BTC’s weekly growth pattern. Major cryptocurrencies like SOL, DOGE, and TRON are trailing behind BTC in weekly gains.
This week’s standout performers were KAS, SPX, QNT, SKY, and ENA, with altcoins achieving over 20% gains only dropping by 1% daily. ZEC, having retreated from its peak, is currently at $457, with weekly losses surpassing 20%. MemeCore is the biggest loser among the top 100 cryptocurrencies, plunging by 36%. TEL, QNT, and SKY Coin bucked the trend with daily gains above 4%, among the few altcoins to do so. Overall, the past 24 hours have been challenging for the cryptocurrency market.
Concrete findings indicate:
- •Bitcoin remains under pressure with a possible drop to $88,000.
- •Altcoins such as KAS and SPX show resilience by maintaining significant gains.
- •MemeCore endures substantial declines, highlighting volatility in the crypto market.
“The current state of the market reflects investor hesitance and underlines the necessity for strategic planning,” an industry expert noted.
Looking ahead, investors and stakeholders should keep a close watch on the evolving market dynamics as external factors and investor sentiment continue to play a critical role in shaping Bitcoin’s trajectory and the broader cryptocurrency landscape.