Cointree Crypto Market Update - December 9th 2020

December 9th, 2020

Market update for traders

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Where do we go from here? A quiet week in the market saw Bitcoin - and to a further extent, the entire cryptocurrency market cool off after just breaching it’s previous all time high in the last week. The price consolidated within a tight range between $25,000 AUD and the low $26,000 region throughout the past seven days. While many were anticipating the resistance at $27,000 AUD to be tested again, the price structure that has unravelled recently has left the market watching closely for Bitcoin’s next move in the short term.

The price chart of the largest cryptocurrency in the world produced a symmetrical triangle formation this past week, resulting in Bitcoin being down by just over 3% at the time of writing. A rather complex structure, it can be observed that the range of price movement has slowly condensed as the boundaries of the triangle converge. While often a difficult predicament to forecast future price movement, what typically follows is an imminent breakout in favour of either the Bulls or Bears - based on which side presents the most pressure. The key factor will be how decisive the move will be and if price will continue in the direction of the breakout. All eyes will be peeled to see if buyers will rejoice in the coming week or if the sellers look to take a stand against Bitcoin’s recent rally.

The altcoin market took a hit in the past week as Bitcoin went into auto-pilot. The major cap alternative coins were all in the negative: Ether (ETH) was down -6% while Bitcoin Cash (BCH), Litecoin (LTC) and XRP all retraced -12%. However, some of the newer altcoins stood out this week in particular: WAVES established a respectable +21% performance, Elrond (ELGD) gained a tremendous +31% and Compound Governance Token (COMP) led the top 100 coins by posting an incredible +35% gain.

Read our full market update here.

Market update for beginners

Are we there yet?

Where do we go from here? A quiet week in the market saw Bitcoin - and to a further extent, the entire cryptocurrency market cool off after just breaching it’s previous all time high in the last week. The price began to squeeze within a tight range between $25,000 AUD and the low $26,000 region throughout the past seven days. While many were anticipating the level at $27,000 AUD to be reached again, the price pattern that has unravelled recently has left the market watching closely for Bitcoin’s next move in the short term.

The price chart of Bitcoin produced a consolidating formation this past week, resulting in Bitcoin being down by over 3% at the time of writing. It can be seen that the range of price movement has slowly reduced as the boundaries of the trend lines join. While often difficult to forecast future price movement, what typically follows is an imminent, big move to either the upside or downside. This is based on whether the buyers or sellers present the most pressure. The key factor will be how decisive the move will be and if price will continue in the direction of the breakout. All eyes will be peeled to see if buyers will rejoice in the coming week or if the sellers look to take a stand against Bitcoin’s recent rally.

The altcoin market took a hit in the past week as Bitcoin went into auto-pilot. The major cap alternative coins were all in the negative: Ethereum (ETH) was down -6% while Bitcoin Cash (BCH), Litecoin (LTC) and Ripple (XRP) all retraced -12%. However, some of the newer altcoins stood out this week in particular: WAVES established a respectable +21% performance, Elrond (ELGD) gained a +31% and Compound Governance Token (COMP) led the top 100 coins by posting an incredible +35% gain.

Read our full market update here.