Crypto Signals Brief for December 26: Uncertainty Keeps Cryptocurrencies Stable
This is what awaits you in this article
Market overview of the last week
For the last two weeks price action has been bearish as we enter the Christmas holiday season and liquidity is getting tight. While we saw a strong move in JPY pairs as the JPY rose on the Bank of Japan and changed its monetary policy, it didn’t have much of an impact on the crypto market, which has been trading in a tight range. Dogecoin made some gains during the week but gave up most of them on Sunday.
There was news that global lending giant Visa could join forces Ethereum to enable its users to transact without the need for a third-party platform. This would mean users could make payments directly from their own self-custodial wallets. Also, the trading volume of Uniswap rose to $59.7 million on Tuesday, up 45% from the previous day, as investors bought into the decline.
Today’s market expectations
This week is expected to be slow again with no clear direction as we are between Christmas and New Years. This means that liquidity will continue to fall. That could be a double-edged sword, however, as a medium-sized transaction is a specific one cryptocurrency could rise or fall under such market conditions. So we will be following the crypto market this week and trying to nurture our crypto trades.
Uncertainty in the financial markets continued last week, as evidenced by the slow price action in the crypto market. Cryptocurrencies have been trading in a very tight range even though we are heading into the end of the year and volatility has decreased so this week is likely to be even quieter.
Bitcoin Keeps stable
Bitcoin surged high above $18,300 earlier in the previous week but later bounced back and last week halted the decline that came after central banks hiked rates. Last week, BTC/USD traded in a tight range as uncertainty lingered and neither side was able to steer things their way.
BTC/USD 240-minute chart
ETHER Stays below the 200 SMA
Ethereum surged above $1,300 earlier this month but turned bearish like Bitcoin, falling to near $1,100 as sentiment turned negative following the latest central bank rate hikes this month. It has managed to climb back above $1,200 but the 200 SMA (purple) remains as Resistance at the top. Until buyers push the price above it, ETH/USD remains bearish.
ETH/USD 240-minute chart
Source: Crypto News Deutsch