Bitcoin (BTC) Price Analysis: Market Picture

Crypto market capitalisation jumped 5% in 24 hours to $3.64 trillion. Optimism in the US stock market pushed Bitcoin above $100K, bringing buyers back into altcoins.

The total crypto market capitalisation rose 5% over the past 24 hours to reach $3.64 trillion.

Bitcoin price rose above the key level of $100,000, which brought buyers back into altcoins. The Cryptocurrency Fear and Greed Index returned to territory of 83, indicating extreme greed.

Bitcoin price climbed to a high of just above $101,500 and has faced solid resistance over the past seven days. Current levels are above the psychologically important round level and the consolidation area of the last three weeks. It may be risky to talk about a breakout to new highs and a complete eradication of bearish sentiment. However, a confirmation of buying strength could see a quick rally into the $120,000 area.

Bitcoin price now trades above the 50-day moving average and the 100 DMA, which are at $90,800 and $88,000, respectively. A Fib retracement (Retracement Fib levels) shows support at $97,800 and resistance at $103,200.

Ethereum price rose 7% on the day to reach $3900, which is double the performance of bitcoin. However, this is a rally and not a breakout to new highs, which makes the path easier. It will be interesting to watch the price action as it enters the $4100 area.

From this level, there are roughly equal chances of a sharp reversal to the downside and a break of resistance with a flight to the $5000 area. Current levels are above the 50 DMA and the 100 DMA, which are at $3500 and $3300, respectively. A Fib retracement shows support at $3700 and resistance at $4080.

Ray Dalio, founder of Bridgewater Associates, said he would invest in the first cryptocurrency amid the inevitable debt crisis and the coming fall of fiat currencies.

Dalio, who manages the world's largest hedge fund, told CNBC that he is "staying away from leveraged assets like bonds and own[ing] hard money like gold and bitcoin."

According to Dalio, bitcoin is "hard money" and is "capped at 21 million coins, which makes it scarce." He added that "people are losing faith in fiat currencies."

The comments come amid a recent sell-off in the US stock market, which has sparked concerns about a broader market downturn.

However, Dalio said he is "not worried about a recession" and that he is "more worried about the debt crisis, which will inevitably lead to the failure of fiat currencies."

He added that "bitcoin is a hedge against this type of failure and that people should consider crypto in this light."

Dalio's comments are likely to boost the case for cryptocurrencies, which have already seen a strong rally in 2023. Bitcoin price is up more than 100% year-to-date, while Ethereum price has risen by over 200%.

Options protocol Derive showed on Monday that the chances of Ethereum reaching $5,000 this December have dropped below 10%.

Currently, the price of ETH is around $3,800, and it has risen by more than 50% in the last 30 days alone. A move to $5,000 will be a 30% increase from the current levels.

According to EthHub founder Eric Conner, a ‘supply crisis’ is looming for the coin. He stated that the supply of ETH available on exchanges has dropped to levels last seen in the bull market of 2021.

Conner highlighted that the last time the exchange supply was this low, the price of ETH rallied rapidly, eventually reaching an all-time high of $4,000 in January 2022.

The Derive data showed that the chances of ETH price hitting $5,000 by the end of the year were as high as 70% in early December. However, the odds have decreased significantly since then.

On Monday, several Ethereum ETFs attracted more than $305 million in volume on Friday, Dec. 10, alone.

The Kryptoin ETF (KRYP) saw the highest volume at 160,970,000 shares traded, followed by the VanEck Ethereum Spot ETF (ETH) with 77,030,100 shares and the Purpose Ethereum ETF (ETHH) with 47,000,400 shares.

The ProShares Trust II - Ethereum ETF (COMB) had the lowest volume among the four ETFs, at 20,600,800 shares.

At the time of writing, the price of ether