Bitcoin Moves Around $57K; Markets in Wait-and-See Mode

The USDT/CNY pair price dropped at the beginning of December, as the deadline came for a popular crypto exchange in China – Huobi.

Technician’s take: Long-term momentum is about to decline, which might limit gains in December. For now, BTC is keeping its support over $54K.

Prices

Bitcoin: $56,605 -1%

Ether: $4,537 -1.1%

Markets

S&P 500: $4,578 +1.4%

Dow Jones Industrial Average: $34,638 +1.8%

Nasdaq: $15,383 +0.8%

Gold: $1,769 +0.7%

Market moves

On Thursday, Bitcoin settled around $57,000 as the market continued to be in a wait-and-see mode. The oldest crypto’s daily trading volume also decreased.

Data from CoinDesk indicates that the trading volume of Bitcoin in most centralized exchanges dropped and was much lower than a week ago. The second-largest crypto by market capitalization, Ether dropped slightly but settled in the $4,600-$4,700 range.

In the meantime, the USDT/CNY pair price plunged at the beginning of December, as the deadline approaches for Huobi to terminate the accounts of its current users in China. In the middle of the latest ban on crypto trading and mining in China, Huobi declared removing all current Chinese accounts by the end of 2021.

According to data from Feixiaohao, tether traded at a notable decrease after China announced the ban. However, its price should match the U.S. dollar’s exchange rate in normal market conditions.

After last month’s decline, Bitcoin maintains to stabilize over the $54,000 support level. Resistance appears to be around $60,000.

A series of lower price highs define the short-term downtrend in BTC since the beginning of November.

Still, substantial overhead resistance might limit price gains in December. BTC is now down around 5% over the past week.