BTC Falls to $42.2K Amid Holiday Cooldown, SOL Shines
Key Takeaways
- Bitcoin price fell to $42,200 on December 26 due to year-end profit taking and tax deductions.
- Binance’s BNB and Solana’s SOL both posted significant weekly gains, outperforming Bitcoin.
- Solana’s strong performance saw it reach its highest level since April 2022, driven by increased gas fees and airdrops.
December 26th, bitcoin showed a downward trend, It fell 2% for the day, reaching $42,200.It was the lowest in almost a week.
This BTC price weakness occurred for the following reasons: seasonal trends The holiday season impacts the cryptocurrency market.
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Analysts cited the decline in Bitcoin prices as the cause. Year-end profit taking and tax loss harvesting.
material indicators famous These factors created a headwind for BTC strength and market participants We are watching closely to see if Bitcoin can recover its 21-day simple moving average (21-day MA).The price at the time was $43,115.
Also, Keith Allen Emphasize In recent months, the importance of the 21-day MA as a support level has been highlighted, highlighting its importance to traders.
While watching Binance’s BTC/USDT order book liquidityBids were observed below $37,000, indicating bearish sentiment among traders in late December.
Celebrity trader Skew suggested that shorts in the market are bracing for a potential price drop below $43,000. From a post by X (formerly Twitter)He said:
These shorts will want consistent spot sales or they will set you back about $43,000.
In contrast to Bitcoin’s performance, BNB on Binance and Solana’s SOL Both had strong weekly gains. BNB/USD 19.5% increaseSOL/USD Soared 56.8% Over the past 7 days. Ethereum (ETH) Showed a more humble side 1.6% gain In the same period.
Solana’s impressive performances include: Increased gas fees and airdropsWith cryptocurrency By Christmas Day it reached almost $126.It is the highest since April 2022.
Michaël van de Poppe, founder and CEO of trading company MN Trading, said: famous all Significant trend changes in overall altcoin market capitalizationThis suggests that altcoin market capitalization could double in the first quarter of this year, resulting in a significant increase.
As the cryptocurrency market enters the new year, investors and analysts will be watching closely to see how these trends continue to evolve.
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