WMA: The $20k Level Escapes Bitcoin (BTC) Once Again
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This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $565 billion.
- Bitcoin lost more than $1,500 before recovering most of it on the weekend.
- Ethereum lost most of its previous 7-day gains to trade again under $600.
- XRP lost roughly 12% throughout the week.
- Grayscale announced the purchase of more than $74 million in ETH tokens.
Crypto Trends 06th – 13th of December 2020: PERFORMANCE & ANALYSIS
A rather disappointing week for the cryptocurrency market comes to an end. Bitcoin and most of the altcoins bled heavily throughout the week only to recover slightly on the weekend. Still, it is not enough to wash away the intense volatility of the last seven days. With an increase in market capitalization of roughly just $4 billion, the entire sector is a shadow of its expectations.
Bitcoin joyously started the week and reached as high as $19,390 on Monday evening. Unfortunately, it all went downhill from there as the primary cryptocurrency lost more than $1,500 by Friday. It only recovered early on Saturday, and at the moment, Bitcoin is trading at around $19,200.
Wells Fargo has recently referred to Bitcoin investments as a similar phenomenon to the Gold Rush of the 1850s in the U.S.A., with some mining for BTC mindfully and others buying and selling the digital asset mindlessly and based on rumors or speculations. This plastic association may explain the way the Bitcoin value wobbles these days.
Ethereum had a rough week as well. The second-crypto in command lost more than 7% of its value in the first five days. It recovered slightly on the weekend, but it still found the $600 resistance level psychologically unsurpassable. Ethereum is now trading at around $580 and avoiding another fall to the nearest support level at $545.
Ripple’s XRP seems to be reverting to its old, disappointing habit of bleeding intensely enough to lose all its gains after a spectacular surge. As the week draws to an end, it records a loss in value of nearly 12%. XRP is trading now at around $0.513. The closest level of resistance is at $0.6, while the nearest support lies at $0.5.
Elsewhere, Grayscale announced $74 million worth of Ethereum tokens to follow up on its recent investment in Bitcoin. Founding the Grayscale Ethereum Trust (ETHE) is excellent news for the crypto industry, becoming even more credible and relevant in the financial world.
What’s in the News?
- The Singaporean bank DBS Group launched a digital asset trading venue.
- Facebook renamed its upcoming cryptocurrency from Libra to Diem, but it is now facing a lawsuit over branding issues by a financial application of the same name.
Next Week’s Market Forecast
The cryptocurrency market is hoping to put this week behind it as fast as possible. The weekend revival of Bitcoin and most of the ensuing altcoins is hopeful. Still, it most likely represents the end-of-the-year trend for all cryptocurrencies: a seesaw motion of intense volatility.
Bitcoin is yet to face the big elephant in the room, which is its all-time-high (ATH) record standing proudly and frighteningly at the height of $20,089. While most investors hope for a sequel to the successful surge of December 2017, we will probably have to wait until 2021 for its release.