Bitcoin managed to reclaim the $95000 support level on Wednesday after falling to $93,696 on December 3 due to political tensions in South Korea.
On the other hand, massive liquidity flows into the altcoin market continued, pushing the overall cryptocurrency market capitalization to a new all-time high of $3.73 trillion, up nearly 4% from the previous day.
At the time of writing, broader market sentiment was bullish, with the Crypto Fear and Greed Index standing at 80 at press time, indicating that the market remains in a state of extreme greed, even if it has failed to provide BTC with the momentum it needs to break out. Is necessary for. The $100,000 mark.
What’s next for BTC?
Bitcoin managed to recover from the fall induced South Korean President Yoon Suk Yeol declared martial law on Tuesday based on institutional buying, a day after US spot Bitcoin ETFs recorded inflows of $676 million.
Further CryptoQuant data shows that outflows outweighed inflows from centralized exchanges over the last 24 hours, bringing total net inflows to -10.0492K.
As such, it can be inferred that the long-term market sentiment around the key asset remains bullish.
However, without any major catalysts, some market pundits expect BTC to trade sideways in the short term.
According to analyst Crypnuevo, the downside on the BTC/USDT weekly chart is partially incomplete, which he notes signals the possibility of a deep retest with a minimum target of $90,000 if bearish momentum builds. Can give.
Fellow trader Byzantine General pointed to an even lower target, suggesting that if current support levels fail to hold, a retest of the $86,000-$90,000 range expected in late December 2024 and early January 2025 is possible .
Conversely, pseudonymous trader Scofield expects a breakout by mid-December, noting that Bitcoin has been consolidating between $93,500 and $96,000 over the past weeks, which he likely sees as a sign of momentum building. Is.
The next major catalyst for Bitcoin is going to be a potential rate cut by the US Federal Reserve, with the CME FedWatch tool indicating a 74.5% chance of a 0.25% rate cut during the December 18 meeting.
At writing, Bitcoin was trading up 0.5% over the past 24 hours at $96,158.15, while its market dominance remained in the low 50s.
All factors point towards an ongoing altcoin season.
At the time of writing the Altcoin Season Index has increased from 86 on Tuesday to 88, reinforcing the narrative that alts were gaining momentum.
Most of the top 99 altcoins were in the green, while the day’s major gainers recorded double-digit gains.
The top performers were:
tron
Tron (TRX) had the biggest gains among the top 100 crypto assets by market cap.
The altcoin was up 46.7% in the past 24 hours and hit an all-time high of $0.431 on December 4 before closing at $0.354 at the time of writing.
The price surge has boosted its market cap to $30.49 billion, up 230% from this year’s lowest point.
Source: coinmarketcap
TRX’s recent rally coincides with a surge in open interest in the futures market.
According to CoinGlass data, OI on its futures market has increased by 88% in the past day to $425 million.
Such a significant increase in OI indicates very high demand for the asset from derivatives traders who are very bullish on the asset.
The altcoin has also emerged as a top performer in the DeFi sector, with its total value locked (TVL) increasing by more than 50% in the past day – far surpassing the 3.5% and 3% seen at leading DeFi blockchains, Ethereum and Solana. Has gone through changes. , respectively.
superfluid
Hyperliquid (HYPE) rose 28.2% over the past day and its market cap reached its new peak of $4.32 billion on December 4.
Source: coinmarketcap
HYPE’s recent rally stemmed from the smooth execution of its Token Generation Event (TGE) on November 29, which distributed 31% of the altcoin’s total supply worth $1.2 billion to the community.
The absence of technical issues during the airdrop and no allocation for venture capitalists or private investors has strengthened investor interest in altcoins.
Additionally, user sentiment on the
This feature allows large orders to be split into smaller transactions every 30 seconds, ensuring a maximum slippage of 3%, hence attracting users and adding fuel to HYPE’s rally.
cover up
Over the past day, Mental (MNT) surged 25% to an eight-month high of $1.13 on Wednesday.
At press time the token was trading at $1.10, with a market capitalization of $3.6 billion and a 24-hour trading volume of $380.9 million.
Source: coinmarketcap
Much of the altcoin’s recent gains have come following Ethereum Layer 2 solution integrated oracle provider Chainlink’s cross-chain interoperability protocol, helping Mantle seamlessly connect with multiple blockchains and providing a secure and trusted framework for building decentralized applications. make capable.
Meanwhile, the existing optimism in the altcoin market helped extend the rally in the later hours of the day.
Post TRX, HYPE and MNT lead crypto gains as Bitcoin trades sideways first appeared on Invez
