Bitcoin began Sunday trading at $95,000, exhibiting sideways movement attributed to lower weekend trading volumes. Despite a strong rally experienced last week, Bitcoin was unable to overcome the resistance level by Friday, which consequently impacted the performance of altcoins as well. This situation prompts a closer look at the latest developments within the cryptocurrency market.
Bitcoin (BTC)
Following its breach below the bear flag pattern, BTC entered a period of sideways movement, with the flag's support line effectively becoming its base. This trend was anticipated to continue towards the $98,000 resistance line, a level BTC did indeed reach. However, as is common after prolonged periods of selling pressure, the resistance was not immediately overcome.
The question remains whether attempts to breach this resistance will persist. As long as Bitcoin maintains a position above the $94,000 level, which previously served as support during the peak trading days from January 5th to 7th, there remains a possibility for retesting the resistance. Currently, BTC holds a strong position, having closed above the challenging barriers established in December.
During the resistance test on January 13th and 14th, Bitcoin ETFs experienced inflows exceeding $1.5 billion. However, the typically low volume characteristic of weekends potentially poses a threat to the $94,000 support level. A resulting pullback led to a $400 million outflow by Friday. Despite this, weekly inflows remain dominant, and a significant portion of new ETF investors express confidence in the continuation of the upward trend, contributing to a positive outlook for the upcoming week.
Cryptocurrency Landscape
Trading volumes saw a considerable decrease; however, LIT and CHZ recorded notable gains within the past 24 hours. Lighter (LIT), which is competing in the new generation DEX market against HYPE and ASTER, had faced challenges during the general market downturn, but the current recovery has assisted its climb past the $2 mark. CHZ has been contending with excessive sell-offs for two years and has demonstrated a 30% increase over the week, with potential for further gains. IP Coin also saw a significant rise, increasing by 40% this week.
Conversely, XMR and CC were among the day's underperformers. Despite Monero's strong rally following the departure of the ZEC Coin team, such surges are often followed by inevitable periods of consolidation. Post-all-time-high (ATH), XMR may experience further weakening due to continued profit-taking activities.