Bitcoin enjoyed a solid weekend, with Bitcoin gaining 5.96% to close out the weekend at $11,754.64, with the only downside for Bitcoin investors being its failure to break through to $12,000 levels, with a weekend high 11,989.15 as far as Bitcoin could go.
In contrast to previous weekends, Bitcoin managed to hold on to the gains through the weekend, with Sunday’s close not too far off the weekend high, suggesting that investors were somewhat more optimistic going into Monday than during previous weekends at the turn of the year.
There was an apparent shift in sentiment as the markets moved into the first hour of the week, with Bitcoin falling 3.83% to $11,303.9, the decline likely to be profit taking before the news wires began to kick into action later in the morning.
Bitcoin and the cryptomarkets in general were free from the futures market over the weekend and there would have been some concern going into this week, with the Cboe February contract having closed at $10,980 on Friday.
The World Economic Forum became centre stage for Bitcoin and its peers and, while we have yet to get a sense of where regulators are likely to go, it’s not going to be hugely positive for the market near-term, while ultimately essential for the longer-term.
On the bright side, the Cboe’s February contract was up $240 to $11,180 at the time of writing, down from an intraday high $11,760. On the down side, that leaves Bitcoin with very little wiggle room, with the futures market once again pulling the cryptocurrencies into the red.
The Monday blues have become a common theme and much of the negative sentiment is more than likely related to investor apprehension towards the week ahead, with today’s losses across the markets coming in the early part of the day.
As the week progresses, direction and appetite for the cryptocurrencies will be driven by the news wires. While positive chatter may be on the lighter side, a lack of negative chatter will likely be well received and it’s going to be needed, with Bitcoin having failed to break through to $12,000 levels since the previous weekend rally that also ended in a slump.
Elsewhere, Litecoin and Ripple were down 6.73% and 6.37% at the time of writing, with Litecoin giving up $180 levels, having touched $192 on Sunday.
Ethereum is also struggling, down 5.80% to $1,144.5, in what is a sea of red through the morning.
For the day ahead, we will expect some support for Bitcoin at sub-$11,000, though any more material decline will be dependent upon the chatter, with investors all too aware that regulatory heat is likely to build in the weeks ahead.