Bitcoin Halts: Resistance Signals Key Levels

What to Know:

• Bitcoin’s repeated failed attempts to break the $90,000 resistance level continue to define market action.
• Broader market sentiment remains cautious as the year closes, with most altcoins mirroring Bitcoin’s struggle.
• XRP remains range-bound, unable to overcome resistance at $1.90, reflecting the overall market’s struggle for upward momentum.

Bitcoin’s end-of-year performance has been lackluster, marked by repeated failed attempts to surpass the $90,000 mark. This resistance has triggered pullbacks, keeping the market in a state of uncertainty. Altcoins are mostly mirroring Bitcoin’s struggles, with only a few exceptions showing independent strength.

Bitcoin’s Stalled Momentum

Bitcoin has faced significant resistance around the $94,000 level throughout December. Each attempt to breach this level has been met with immediate selling pressure, preventing sustained upward movement. Since December 15, Bitcoin has made at least five attempts to break through the $90,000 barrier, each time failing to maintain its gains.

Over the weekend, Bitcoin hovered around $87,000 before making another push past $90,000. However, bears quickly rejected this attempt, driving the price back below $87,000. While Bitcoin has since recovered to around $88,000, the $90,000 resistance remains a formidable obstacle. Bitcoin’s market capitalization remains around $1.750 trillion, with a dominance of over 57% on CG.

Altcoin Performance Mixed

Ethereum briefly exceeded $3,000 but faced a similar rejection as Bitcoin, settling back at that key level. BNB stalled at $860, while XRP has been unable to break above $1.90. Other major altcoins like SOL, BCH, LINK, and DOGE are also slightly down on the day. Cardano experienced a more significant decline, losing over 4% of its value, while MNT has dropped by over 5%, and XLM and XMR are down by 3-3.5%.

Notable Gainers: CC and ZEC

bucking the broader market trend, CC has surged by 7% to $0.135, and ZEC has gained 3.4% to nearly $540. These altcoins demonstrate that select opportunities for growth exist even in a cautious market environment. The total crypto market capitalization remains relatively stable at $3.060 trillion on CG.

Implications for XRP and Market Liquidity

XRP’s inability to break the $1.90 resistance mirrors the broader market’s struggle for upward momentum. This stagnation affects liquidity across various trading pairs and could indicate a period of consolidation before a potential breakout. Investors are likely watching for clearer signals before committing to significant positions.

Conclusion

The cryptocurrency market is closing the year with a sense of cautious optimism. Bitcoin’s struggle to overcome resistance at $90,000 is a key factor influencing market sentiment. While some altcoins show independent strength, the overall market remains subdued. Investors should remain vigilant and monitor key levels for potential breakouts or breakdowns as the market enters a new year.

Related: XRP ETF Flows Show 29-Day Inflow Streak

Source: Original article