Bitcoin fell further on Dec. 29 as short-term price action continued to contrast with investors’ bullish take on the future.
The past 24 hours saw fresh losses for BTC/USD, which after hitting all-time highs of $28,400 on Sunday struggled to find realistic support levels. At press time, the pair was nearly back to $27,000, having bounced at $25,830 overnight.
Traders urge investors to avoid XRP
The 6% two-day losses came amid further nervousness surrounding the fate of XRP, the fourth-largest cryptocurrency by market cap.
On the back of an impending lawsuit from the U.S. Securities and Exchange Commission against Ripple, XRP’s largest investor, major exchange Coinbase joined the list of platforms refusing to allow trading any longer, with a full suspension to begin on Jan. 19. XRP/USD subsequently dived to $0.20 at press time, capping weekly losses of almost 60%.
“I don’t know why people are focused on buying $XRP when there are tons of great undervalued projects out there with a significantly better R/R and not getting delisted,” popular trader Michaël van de Poppe argued on Tuesday.
On Monday, Van de Poppe argued that altcoins more broadly were ripe for a resurgence while Bitcoin takes a break.
Moreover, sentiment among established traders was firmly risk-off on XRP.
“A few people have told me that there’s oversold bullish divergence on the $XRP chart. You are doing it wrong. Charts don’t matter here,” Scott Melker said. “You cannot trade in a vacuum.”
“Jesus could come down with Biggie and Tupac and put on a concert for Brad Garlinghouse and I still wouldn’t buy.”
Whales gained $647 million in last week’s Bitcoin buy-in
On the topic of last week’s monumental price increases, meanwhile, exchange BTCC noted that buyer support had come from the same large-volume investors who had sold coins en masse at previous all-time highs of $20,000.
“According to the on-chain data, the big address holders are buying Bitcoins more aggressively during the Christmas holiday. Around $647 million worth of Bitcoin was likely transferred from small addresses to large addresses,” a new blog post summarized, quoting numbers from statistics resource Santiment.
“As the crypto market is operated 24/7, traders are more likely to take chances to trade anytime they want. The fact shows that the recent overextended rally and the holiday period did not stop the whales from keeping accumulating Bitcoin. Therefore, we expect the bullish sentiment remains strong and the next bull run is about to come.”
Elsewhere, largest altcoin ether continued to prove its worth, climbing towards $730 and its highest levels since May 2018.
Fresh off the launch of parent network Ethereum’s new protocol, Ethereum 2.0, ETH enjoyed positive publicity in light of Ripple’s troubles as the only altcoin to have received confirmation from U.S. regulators that it is not a security.
Among the best performers in the top 10 was Polkadot, which gained 22% on the day to hit weekly gains of almost 35%.