- Bitcoin and other cryptocurrencies saw a decline on Monday, and it was observed that recent highs for digital assets were challenging to maintain.
- Bitcoin has gained over thirty percent since the beginning of October, calling for a new bull market by breaking out of a multi-month low trading period.
- Crypto traders are still in a bullish trend, with the positive funding rate in Bitcoin derivative markets signaling that most bets expect the prices to continue.
Bitcoin’s price started the week under selling pressure and struggles to hold above $37,000: What’s next for BTC?
Bitcoin Price Under Pressure at the Start of the Week
Bitcoin and other cryptocurrencies saw a decline on Monday, and it was observed that recent highs for digital assets were challenging to maintain. However, analysts and traders are expecting the momentum behind gains to continue.
The price of Bitcoin dropped by 1% in the last 24 hours, reaching $37,050, moving further away from the recent peak above $38,000, which was the highest level for the largest digital asset since the harsh decline of cryptocurrencies in May 2022. Bitcoin has gained over thirty percent since the beginning of October, calling for a new bull market by breaking out of a multi-month low trading period.
Alex Kuptsikevich, an analyst at the FxPro broker, stated:
“Failing to sustain the growth at the end of last week puts moderate pressure on prices.”
Optimism that U.S. regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF) is another factor widely expected to usher in a new wave of investor interest in Bitcoin and other digital assets.
The macroeconomic environment supporting the Dow Jones Industrial Average and S&P 500 in the stock market is also supportive. Traders are expecting the Federal Reserve to change its monetary policy next year, likely reducing borrowing costs four times, which should increase risk-sensitive bets like technology stocks and tokens.
Which Levels Will Be Crucial?
As crypto traders are still in a bullish trend, the positive funding rate in Bitcoin derivative markets signals that most bets expect the prices to continue. Analysts also point out that a strong technical foundation is being monitored. Kuptsikevich stated:
“The lower bound is currently $36,600, and the upper bound is $38,300… Only a drop below the lower bound will question the sustainability of the upward trend. Until then, buying dominance in Bitcoin declines is highly likely.”
Beyond Bitcoin, Ether, the second-largest token, lost 2.5% by falling below $2,050. Smaller cryptocurrencies or altcoins also experienced declines; Cardano dropped 3%, and Polygon lost 4%. Memecoins were more lively, with Dogecoin rising by 2%, while Shiba Inu increased by less than 1%.
