Bitcoin Holds Steady as Market Reacts to Weekend Moves

Bitcoin (BTC) found itself in a calm range on December 2, after experiencing a dip from nearly $8,000 over the weekend. Traders were eagerly watching to see if the support at $7,000 would hold strong, and lucky for them, it did!

Market Fluctuations: The $300 Dance

Data from market analytics revealed that Bitcoin was navigating a $300 corridor, showcasing a bit of restraint for the world’s leading cryptocurrency. The day began with BTC/USD showing signs of fatigue, hitting a low around $7,180 and then bouncing back to hover around $7,300, still struggling to reclaim the elusive $7,500 mark.

Predictable Moves: Analysts Take a Breather

The reduced volatility brought about a sense of calm among analysts, allowing them to make more accurate predictions on Bitcoin’s immediate movements. Michaël van de Poppe, a regular contributor, noted that the focus was shifting towards breaking the $7,400 level. He hinted that doing so could pave the way for a surge towards the higher resistance of $8,100. However, there’s always a ‘but,’ and in this case, it was about maintaining key support levels.

The Purple Zone: A Critical Level

Van de Poppe pointed adorably to what he referenced as the “purple zone” around $7,250. According to him, if Bitcoin failed to hold this zone, a retest of the $6,900 mark would be on the horizon. It’s like watching a suspenseful movie—not knowing if the hero will emerge victorious or take a tumble into the abyss of lower support levels!

The Lingering Futures Gap

Adding an interesting twist to the tale was the ongoing speculation regarding the futures market. Traders were keen to see if Bitcoin would fill a gap created in the futures trading prices. Essentially, a futures gap occurs right at the end of one trading session and the beginning of another. On Friday, the CME Group’s monthly futures closed $315 above where they opened on Monday, leading many to believe this gap would need to be filled, possibly forcing Bitcoin between $7,465 and $7,800.

Altcoins Tag Along for the Ride

As Bitcoin steadied itself, altcoins decided it was an opportune time to join in on the fluctuations. Ether (ETH), the heavyweight of altcoins, took a 1.6% plunge, barely managing to hang onto support at $150. Meanwhile, EOS and Litecoin didn’t fare as well, slipping 3.4% and 4.41%, respectively. It’s a tough gig being an altcoin when the king of cryptocurrencies is playing it cool.

The Market’s Current Standing

The entire cryptocurrency market cap stood at an eyebrow-raising $199.3 billion, with Bitcoin clinging tightly to a 66.5% market share, which was a slight drop from the previous day. In the wild world of crypto, every percentage point counts!