Cointree Crypto Market Update - December 16th 2020

Market update for traders

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An early scare for Bulls this past week saw Bitcoin's price plummet after breaking the triangle formation referenced in our last market update. The price dropped to as low as $23,300 AUD before the Buyers stepped in and made their presence felt strongly - recouping the losses experienced in the early stages of the week. At the time of writing, the price of Bitcoin is sitting comfortably at break-even just over $25,400. While this may seem unusual for the ‘Digital Gold’ - what is most impressive about it’s recent performance is its swift rebound after testing local support levels.

Many market observers were worried as the Sellers pushed price from $25,600 AUD late last week to the $23,000’s region coming into this week. However, the charts showed us the importance of this particular zone. Towards the end of November, we saw how the $23,600 level proved to be a strong resistance before eventually breaking to the upside. This week we saw a technical analysis concept come into play. A general insight is: if price rises above a resistance level, that level has been seen to become support in the future. As Bitcoin's price plunged dramatically and the Bulls began to sweat, the previous resistance of $23,600 acted as support - providing Buyer’s with a renewed sense of vigor. Going forward, in order for Bitcoin to establish new highs, the $27,000 level must be successfully breached and maintained.

A whip-saw week for Bitcoin, we saw much the same for altcoins. While the majority of the major cap altcoins saw little considerable loss or gain, XRP was hit hard - down by -20%. For the mid to lower cap alternative coins: NEM (XEM) prospered with a +12% gain over the last seven days, succeeded by Bancor (BNT) +31% and Elrond (EGLD) dominated once again with an impeccable +62% performance.

Market update for beginners

An early scare for buyers this past week saw Bitcoin's price drop after breaking the triangle formation referenced in our last market update. The price dropped to as low as $23,300 AUD before the buyers stepped in and made their presence felt strongly - recovering the losses in the early stages of the week. At the time of writing, the price of Bitcoin is sitting at break-even (0% gain) just over $25,400. While this may seem unusual for the ‘Digital Gold’ - what is most impressive about it’s recent performance is it’s swift bounce back after dropping to lower prices.

Many market observers were worried as the sellers pushed prices from $25,600 AUD late last week to the $23,000’s region coming into this week. However, the charts showed us the importance of this particular zone. Towards the end of November, we saw how the $23,600 level proved to be a key ceiling before eventually breaking upwards. This week we saw a technical analysis concept come into play. A general insight is: if the price rises above a resistance level (an upper price level for a coin that is repeatedly reached but not exceeded due to resistance from the market), that level has been seen to become support in the future. As Bitcoin's price plunged dramatically and the bulls began to sweat, the previous resistance of $23,600 acted as support - providing buyers with a renewed sense of force. Going forward, in order for Bitcoin to establish new highs, the price must successfully close and maintain above the $27,000 level.

While the majority of the major cap altcoins saw no considerable loss or gain, XRP was hit hard - down -20%. For the mid to lower cap alternative coins: NEM (XEM) prospered with a +12% gain over the last seven days, succeeded by Bancor (BNT) +31% and Elrond (EGLD) dominated once again with an impeccable +62% performance.