Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD lingered around the $16,700 mark, practically unaffected over the weekend.
The pair saw only partial volatility at the open, as US stocks fell slightly. At the time of writing, the S&P 500 and Nasdaq Composite are down 0.5% and 1%, respectively.
For bitcoin traders, there was not much to celebrate, with the consensus that the lows could be tested next.
“Bearish as long as it stays below $19K,” summed up Crypto Poseidon alongside the chart.
Annotated BTC/USD chart. Source: Crypto Poseidon / Twitter
The famous trader and analyst Rekt Capital highlighted $17,150 as an important level that must be recovered to avoid further declines later.
“If BTC continues to reject from the resistance around $17,150… the price could drop to -20% to the downside in the coming weeks,” he predicted, uploading a one-month BTC/USD chart.
Rekt Capital added that “there is still time for Bitcoin to perform a monthly close above $17,150 later this month” but “a monthly close below ~$17,150 would confirm the beginnings of a breakdown from here.”
Meanwhile, Michael Van de Poppe, founder and CEO of trading firm Eight, offered a slightly more optimistic view.
With more US economic data expected towards the end of the week, BTC/USD had the potential to break to the upside and target $17,300 to offer a “short opportunity”.
He replied, “No breakout, then look for longs at around $16.2k or $15.5k.”
Annotated BTC/USD chart. Source: Michaël van de Poppe / Twitter
Grayscale CEO: FTX was a ‘failure to people’
News that Binance.US, the US subsidiary of cryptocurrency exchange Binance, has offered to acquire assets of stricken lending firm Voyager, but had no material impact on market performance.
Related: “low wave” for all markets? 5 things to know in bitcoin this week
The latest twist in the FTX saga, the announcement came as Binance itself continued to deal with what its CEO, Changpeng Zhao, once again dubbed a “FUD” over the weekend.
Meanwhile, in a letter to investors, Michael Sonnenstein, CEO of investment firm Grayscale, sought to make a clear distinction between FTX and cryptocurrencies as a whole. Grayscale’s parent company, Digital Currency Group (DCG), had previously also fallen on the heels of FTX.
“FTX was a failure of the people, not a failure of crypto: many investors were hurt. From cryptocurrency to traditional finance, mainstream media and capital – few people seem to have escaped being deceived by false narratives and false documentation.”
“However, we should not confuse the actions of a few individuals and institutions with Bitcoin or Ethereum, the underlying blockchain technology, or smart contracts and decentralized finance applications.”
Grayscale’s flagship product, Grayscale Bitcoin Trust (GBTC), is trading at a 48.7% discount to Bitcoin’s spot price as of Dec. 17 — its largest discount ever, according to data from Coinglass.