Crypto market consolidates as Bitcoin holds above $39,500 level

Crypto market overview: Bitcoin has shown minor recovery in the last 24 hours with a 0.3 per cent uptick after strong consolidation above the $39,000 level. Other leading cryptocurrencies have shown mixed movement yesterday as ETH, BNB, XRP, and Chainlink have shown some dip while Solana has shown a strong recovery with more than 3.77 per cent gain in the last 24 hours. 

The Crypto Fear and Greed Index has also shown some improvement as the indicator moved above 50 points today from 48 points yesterday. 

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Sharing the market movement in the last 24 hours, Rajagopal Menon, Vice President, WazirX, “This morning, a measured upward movement occurred as Bitcoin recovered above $40,000. After dropping below $39,500 on Wednesday, experiencing an almost 20 per cent dip from its recent peak, BTC rebounded strongly, reaching $40,166. The performances of Solana's SOL and Avalanche's AVAX were particularly noteworthy, exceeding expectations with gains of approximately 8.5 per cent and 11.5 per cent, respectively. These assets were pivotal in leading the broader market toward an upward trajectory.” 

CoinDCX Research Team said, “In the last 24 hours, BTC has exhibited a slight recovery, holding above $40,000, yet it needs to clear and close above $40,800 for a bullish confirmation. ETH, however, closed in the red and maintains a bearish outlook. It is currently consolidating near the crucial support level at $2,175. A break of this level could potentially push ETH to $2,125 and $2,016. In related news, the SEC has delayed the approval of BlackRock's spot Ethereum ETF, contributing to a somewhat bearish sentiment for ETH at the moment.”

CoinSwitch Markets Desk also shared their market overview with Republic Business. CoinSwitch said, “BTC has started consolidating in a very narrow range of $39,500 to $40,500 following the recent dump below $40,000. While this might indicate that bulls are not willing to step in at this price point, it might also be the case that taking Bitcoin’s price further down will not be easy for the bears as well. Given that $38,500 is the last line of support before the next big support at $32,000, some consolidation is expected here.” 

While Grayscale’s GBTC sell pressure has seemingly slowed down, there has been another fear of a massive BTC unlock that might be coming in with the now-defunct Mt Gox exchange. Mt Gox has reportedly started verifying the BTC addresses of the 2014 hack victims and it seems likely that 200,000 BTC may soon enter into the market further adding up to the selling pressure.

Edul Patel, CEO, Mudrex said, “Bitcoin currently trades at $40,000, with market participants monitoring Grayscale's spot bitcoin ETF sell-offs. Investors are eagerly awaiting the release of US GDP and PCE figures today. The support for Bitcoin rests at $39,800, and immediate resistance levels are at $40,129 and $40,445. It is likely that Bitcoin will trade sideways, as it has not yet built up the strength to make a sharp move.”

In another news, the SEC has pushed its decision on an Ethereum-based ETF by BlackRock to March, citing the need for more time. Analysts predict we can see an Ethereum ETF sooner than the market expects.

Future outlook 

Underlining the technical indicators, Menon said, “The technical indicators for BTC/USD suggest a nuanced market situation. The hourly MACD reflects a diminishing bearish momentum, hinting at a potential shift. Meanwhile, the hourly RSI has crossed the 50 level, indicating a relative strength in the current trend. Key support levels stand at $39,400 and $38,500, providing crucial points to monitor. On the upside, significant resistance levels are identified at $40,400, $40,500, and $40,850, suggesting potential hurdles for further upward movement. Traders are likely observing these levels closely for insights into the market's next moves.” 

Vikram Subburaj, CEO, Giottus highlighted the increasing whale activity in the market which can further give another push to the market recovery. Subburaj said, “Bitcoin RSI has also slightly recovered at $39. The upcoming release of the US Q4 GDP data is key. A consensus outlook at a quarterly rate of above 2 per cent could provide Bitcoin the cushion to test its 50-day EMA at $41,750. Key altcoins have seen a marginal increase, with Solana gaining 4 per cent on news of Jupiter’s anticipated airdrop scheduled for today. Avalanche, Polkadot and Tron have posted gains in the 2-3  per cent range. Key resistance zones for altcoins: Ethereum ($2,300), Solana ($100), BNB ($300), Avalanche ($35) and Cardano ($0.49).”