The crypto market is struggling with low volatility for almost ten days. This period saw the two leading cryptocurrencies record gradual moves at reclaiming key levels. Nonetheless, at the start of December, there were lots of speculations.
For both assets, some key events that could shake the entire market were the main concerns. An outlook earlier this month stated that the Feds will hold a meeting this month. They could raise or decrease interest based on prior meetings. Based on prior market responses to these remarks, we might predict a change in the asset’s value.
The write-up further stated that aside from this, a lot of individuals anticipate December 13 with anticipation. The Consumer Price Index will be released at this moment by the proper authorities.
It raised concerns that the effect of these announcements may have a huge impact on prices. The analysis concluded by adding that these cryptocurrencies may experience reduced volatility during the first few days of the month.
These predictions did not only affect the coins under consideration. We also see the effect on the global cryptocurrency market cap. Let’s take a look at what transpired.
Global Cryptocurrency Market Cap Drops by 8%
The crypto market opened the period under consideration at $861 billion. With both fundamentals dropping, the valuation dipped to a new low. The good news came first as CPI data showed that inflation is gradually reducing.
In response, the sector shot to a high of $876 billion. The increase continued until the Fed’s meeting. December 14 saw the federal reserve increase interest rates by 50 bps. As a result, several assets went on a downtrend.
We noticed a gradual drop from its high before another burst that saw the valuation plummet to a low of $800 billion. A few days later, the effect of the fundamental continued to wreak havoc as it returned to a low of $790 billion.
Nonetheless, before these drops, We noticed a sharp drop to the highlighted low. As at the time of writing, we noticed that the market is worth $796 and may end with this value. This signifies a more than 8% drop over the last thirty days. Bitcoin and Ethereum are not exempted from the decrease in value.
Comparing both monthly charts, we noticed that December is the least performing for both assets. The candle representing the current month is the smallest in twelve months.
Bitcoin Retest $18k
Bitcoin enjoyed a lot of price movements over the last thirty days. It opened trading at $17,166 but failed to record any significant increase during that intraday session. The first twelve days of the month were marked with no significant price increases.
Nonetheless, we noticed BTC held on to the $16,800 support during this period. The drama started on the 13th day as it picked up momentum. It opened the intraday session at $17,214. For the first time in more than thirty days, it retested the $18k resistance.
The attempt yield result as the coin peaked at $18,100. It also closed with gains exceeding 3%. The next day was another bullish one. It opened at $17,711 and surged above $18k for the second time.
It peaked at $18,300 but met strong resistance at the mark. As a result, it retraced to its opening price and closed with no notable change in value. This also marked the end of the uptrend as the next few days were bearish.
The next day, it dipped to a low of $17,288 and closed with losses of almost 3%. December 16 was the most bearish as BTC lost the $17k support. The asset dipped to a low of $16,572. It ended the session with losses of more than 4%.
It returned to the low trading volume over the next three days. December 20 presented another volatility-filled session. Bitcoin opened the 24-hour cycle at $16,411 and made an attempt at reclaiming $17k.
It flipped it but closed at $16,900 with gains of almost 3%. This was also the last bullish day of the month as the next ten days were filled with very small volatility and no impact on prices. It struggled between $17k and $16k during this period. This was also the same sentiment on Ether.
Ethereum Held on to $1,200
This is what happened over the first twelve days of the month. Nonetheless, ETH showed a lot of volatility on the 3rd day as it dipped from an open at $1,296 to a close at $1,241. This signified that the coin lost more than 4%.
We noticed an attempt at reclaiming the lost levels during the next intraday session. However, it closed at $1,274 which indicates a 3% increase. It flipped $1,300 for the first time in twenty days but retraced and recorded small losses.
We noticed the events that played on December 3rd and 4th also repeated on the 7th and 8th. This time the bulls edged. Based on the fundamentals, trading volume picked up on the 13th.
At $1,276, it started the intraday session. It tested the $1,300 resistance again. The effort was successful because the coin’s peak value was $1,350. Additionally, it ended the day up more than 3%. The following day was also a bullish one. It went beyond the highlighted mark for the third time after starting at $1,320.
When it reached its top, at $1,355, there was significant pushback. As a result, it reversed course to close at the same price as it opened. The uptrend was also over at this point because the following few days were bearish.
It dropped to a low of $1,259 the next day and finished with losses of about 3%. The most negative day was December 16, when ETH lost the $1,200 support. It fell as low as $1,150 and lost more than 7% as the sessions came to an end.
Over the following three days, the trading volume decreased once more. On December 20, there was more price movement than usual. Ether attempted to recoup $1,200 after starting the 24-hour session at $1,167.
However, it turned and ended up closing at $1216, up roughly 4%. This was also the final positive day of the month because prices had little effect over the following ten days with very little volatility.
It also worth noting that these price movements had impacts on indicators. Let’s go over them
