Crypto markets rallied on Friday, recouping some of the losses and ignoring inflation concerns. Bitcoin retreated to $17,000 while Ethereum was below the $1250 mark. All other major crypto tokens traded higher. Ethereum is up 4% while Polygon is up 3%. Bitcoin, Polkadot, Litecoin and Tron added 2 channels. The global crypto market cap traded higher at around $860 billion, up more than 2% in the last 24 hours. Total Transaction Volume(TTV) was flat, increasing nearly to $37.43 billion.
Bitcoin teetered below $17,000 at the Wall Street Open on Dec. 8 as the US dollar threatened further weakness. BTC/USD changed marginally in the last 24 hours. Given the lack of macro signals, analysts saw a possible collapse of the U.S. Dollar strength as the next volatility catalyst for crypto. The US Dollar Index (DXY) seemed to challenge multi-day support, falling below 105, multiple times over the day. BTC price fell 0.8% during the week and stabilized near the $16,800 level at 10:00 UTC on December 8, although it eventually broke above $17,200 on the same day. Discussions surrounding the regulation of crypto pressured markets and the collapse of the FTX exchange curtailed traders’ appetites, prompting lawmakers to turn their attention to the potential impact on financial institutions and the lack of protection for retail investors.
Developers plan to release Ethereum Enhancement Protocol (EIP) Update 4844 during May or June of 2023, which will introduce proto-danksharding to the network. Although the long-awaited Proof-of-Stake merge update was completed on September 15th, Stacked Ether (stETH) is currently locked on the Ethereum Beacon Chain. The token is created by the decentralized finance protocol Lido with around 3.5 million stETH ($4.48 billion) in circulation. After the Shanghai update, stETH users can withdraw their funds along with any applicable staking rewards to validate network transactions. Derivatives traders remain bearish as Ether futures premium is negative. As such, bears may celebrate that the indicator is far from the neutral 0-4% premium, but that doesn’t mean traders expect immediate adverse price action. Like delta bias, the 60-day Price at 12%, whales and market makers are approaching a neutral sentiment for Ether. Finally, both the options and futures markets are suggesting that professional traders are concerned that the retest of the $1200 support is the natural price for ETH.
On the macro front On Dec. 6, the Financial Crimes Enforcement Network (FinCEN) said it was “closely watching” decentralized finance (Defi). The agency’s acting director, Himamauli Das, said the digital asset ecosystem and digital currencies are a “top priority area”. The Hong Kong Council Legislature approved a new licensing regime for virtual asset service providers. From June 2023, crypto exchanges will be subject to the same laws as traditional financial institutions. The change will require stricter anti-money laundering and investor protection measures before an operating license is granted.
Meanwhile, Australian financial regulators are actively working on methods to include stable payment currencies in the regulatory framework for the financial industry. On December 8th, the Reserve Bank of Australia released a report on stablecoins, citing the risks of disruptions in funding markets such as bank exposure and liquidity. The analysis highlighted the particular fragility of algorithmic stablecoins and pointed to the collapse of the Terra Luna ecosystem.
Technical Outlook:
BITCOIN:
BTC this week was mostly trading above $17k. However, the bulls are struggling to push the prices above the key resistance of $17,500. After making the low of $15,476, the asset is showing some signs of recovery and is trying to make a small ‘Bullish Flag’ pattern. Once it breaks out and closes above $17,500 then we may expect the prices to further rally up to $22k levels whereas a break below $15,500 will lead to the further downfall and the asset can test the next support of $12k.
ETH:
ETH after taking the support at $1,075 started moving up slowly and surged almost by 21% and made the high of $1,310. Post this move, the asset has resisted multiple times at its 50 Day Moving Average. Currently, on a daily time frame, ETH is consolidating and trading in a range between $1,225 to $1,300 with low volumes. The asset has strong resistance at $1,400 whereas $1,200 and $1,000 will act as strong support for the asset.
BNB:
BNB had been very volatile last month. From the highs of $398 the prices corrected almost by 35% and plunged to $250. The asset took support at the key level of $255 and rallied up to $303 within three trading sessions. Post this move, BNB started consolidating and trading from $280 to $300 forming a ‘Falling Channel’. To witness a rally, it needs to give a breakout above the pattern with good volumes and a close above $300.
Weekly Snapshot:
| USD ($) | 01 Dec 22 | 08 Dec 22 | Previous Week | Current Week | |||
| Close | Close | % Change | High | Low | High | Low | |
| BTC | $16,967 | $17,233 | 1.57% | $17,197 | $16,217 | $17,378 | $16,751 |
| ETH | $1,276 | $1,281 | 0.38% | $1,302 | $1,174 | $1,302 | $1,224 |
| BNB | $292.02 | $209.54 | -28.24% | $316.96 | $289.76 | $296.91 | $282.02 |
| crypto | 1w – % Vol. Change (Global) |
| BitCoin (BTC) | -16.17% |
| Ethereum (ETH) | -13.73% |
| Binance Coin (BNB) | -35.82% |
| Resistance 2 | $22,500 | $1,750 | $1.20 | $336 |
|---|---|---|---|---|
| Resistance 1 | $17,500 | $1,400 | $1.05 | $300 |
| USD | BTC | ETH | Matic | BNB |
| Support 1 | $15,000 | $1,000 | $0.75 | $255 |
| Support 2 | $12,000 | $881 | $0.62 | $215 |
Market Updates:
- Japan’s financial giant Sumitomo Mitsui Financial Group is experimenting with soulbond tokens to satisfy new social needs.
- Tony Fadell, the man behind the iPod, iPhone and Nest Thermostat, collaborates with major crypto wallet firm Ledger to build a new cold wallet.
- Sam Bankman-Fried has been the subject of many lawsuits and investigations since the collapse of FTX, with more likely to follow.
- Fintech company ZELF launches anonymous Visa debit cards with crypto recharge. The company’s latest initiative will allow users to open up a U.S. dollar checking account with only their name, email, and phone number.
Disclaimer: This report is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation, or needs of any investor. All investors should consider such factors in consultation with a professional advisor of their choosing when deciding if an investment is appropriate. The Company has prepared this report based on information available to it, including information derived from public sources that have not been independently verified. No representation or warranty, express or implied, is provided in relation to the fairness, accuracy, correctness, completeness, or reliability of the information, opinions, or conclusions expressed herein. This report is preliminary and subject to change; the Company undertakes no obligation to update or revise the reports to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Trading & Investments in cryptos viz. Bitcoin, Bitcoin Cash, Ethereum, etc are very spec
