(Kitco News) - Little changed for the cryptocurrency market over the weekend as investors remain transfixed on the policy announcements in the U.S., including an update on the latest Consumer Price Index (CPI) reading on Tuesday, followed by a potential 50 basis point hike to interest rates by the Fed on Wednesday.
While the crypto market continued to trade sideways, the same could not be said for the traditional markets as stocks climbed higher in trading on Monday. As a result of the bullish moves higher, the S&P, Dow and Nasdaq all closed the day in the green, gaining 1.43%, 1.58% and 1.26%, respectively.
Data from TradingView shows that the day kicked off with a 1.23% sell-off in the price of Bitcoin (BTC), which fell to a daily low of $16,867 in early trading but has since clawed its way back above $17,150 where its price has been supported since early December.
BTC/USD 4-hour chart. Source: TradingView
The early morning pullback did little to change the overall outlook for Bitcoin, according to Kitco senior technical analyst Jim Wyckoff, who noted that “The recent sideways and choppy trading action on the daily chart, or pause, has the bulls and bears on a level overall near-term technical playing field.”
Moving forward, “the direction in which BC prices “break out” of the trading range will very likely be the direction of the next significant price trend in the market,” Wyckoff said.
A similar perspective was provided in the newest ‘Trade Letter’ from market analysts Luuk Koolen and Michaël van de Poppe of Eight Global, who said “BTC has been battling with the $17k level for almost two weeks, which many see as the crucial level to hold as support, or to break through upwards.”
BTC/USDT 1-day chart. Source: TradingView
According to the analysts, “A break of this level would result in a reclaim of the range low,” while “A reclaim of this range low could start to create more upward momentum, which many traders are currently waiting for before they position themselves.”
A look at the 2-hour Bitcoin chart shows that its price has made several attempts to break higher, “but is continuously pushed back, creating stophunts,” the letter said.
BTC/USDT 2-hour chart. Source: TradingView
“Currently, we seem to be bouncing slightly on the order block around ~$16.8k, which acts as strong support. Slightly lower, around $16.4-16.6k sits a breaker block + a demand zone that many traders will anticipate, should price get there. For now, it is good to keep an eye on these levels for long positions,” the report concluded.
After the bounce back in Bitcoin near midday on Monday, Poppe posted the following tweet noting the climb up to a major resistance level and setting the stage for a potential continuation later in the week while highlighting a price target of $18,170.
#Bitcoin getting into resistance now, but a good bounce and therefore pretty decent daily candles across the markets.
— Michaël van de Poppe (@CryptoMichNL) December 12, 2022
Tomorrow and Wednesday are going to be fire. pic.twitter.com/NkxkHCs2rm
Standouts in the Altcoin market
As a whole, the altcoin market traded sideways alongside Bitcoin on Monday save for a few standout performances.
Daily cryptocurrency market performance. Source: Coin360
The biggest gainer on the day was Magic (MAGIC), which climbed an impressive 36.89% following a listing on the top crypto exchange Binance. Other notable gainers include an 11.62% increase for Ocean Protocol (OCEAN) and a 7.78% increase for BinaryX (BNX).
The overall cryptocurrency market cap now stands at $844 billion, and Bitcoin’s dominance rate is 38.9%.
