State of The Crypto Market

Macro Overview

• Weekly US Unemployment Claims : The weekly report on US unemployment claims reveals an incline, with figures coming in at 218k compared to the anticipated 211k. While the increase indicates lack of strength in the job market, it introduces a slight positive influence on the crypto market due to its historical inverse relationship with cryptocurrencies.

Crypto Markets Overview

• Mt. Gox Creditors Report Repayments: Reports surface that Mt. Gox creditors are finally receiving repayments almost a decade after the exchange’s initial shutdown. Creditors claim the return of their Crypto holdings, which had been locked on the exchange since 2014. While concerns about potential selling pressure arise, the impact on BTC’s price remains uncertain, and the market responded without significant fluctuations following the news.
• Hong Kong Regulator Nears Approval for In-Kind Spot Bitcoin: ETFsHong Kong’s financial regulator releases rules for spot bitcoin exchange-traded fund (ETF) issuers, allowing both cash and in-kind creation models. This marks a departure from the U.S. Securities and Exchange Commission’s (SEC) exclusive preference for the cash creation model. The regulatory flexibility in Hong Kong is seen as a positive development for the crypto market.
• MicroStrategy Bolsters BTC Holdings with $615M Purchase: MicroStrategy allocates nearly all proceeds from recent at-the-market share sales to purchase an additional 14,620 bitcoins, amounting to $615 million. This move reinforces MicroStrategy’s commitment to Bitcoin, pushing its total BTC holdings to $5.9 billion. The significant purchase is perceived positively within the crypto space, reinforcing institutional confidence in Bitcoin.

Top Tokens Update

• Worldcoin Launches in Singapore Amid India Pause: Worldcoin introduces identity verification services for Singapore residents, expanding its global presence. The move follows a temporary pause in operations in India. More than five million people, roughly 0.06% of the world’s population, have created Worldcoin accounts according to the verification project. WLD token experiences over a 5% increase in value during the week.
• PancakeSwap Plans Significant CAKE Token Supply Reduction: PancakeSwap proposes a substantial reduction of 300 million in the CAKE token supply. The proposal garners overwhelming support from the community, with over 99.95% favoring the initiative, representing approximately 70,000 votes from CAKE holders. The positive response reflects confidence in PancakeSwap’s decision, influencing the CAKE token positively.
• Vitalik Buterin Proposes Ethereum PoS Simplicity: Ethereum co-founder Vitalik Buterin proposes a simplification of Ethereum’s proof-of-stake (PoS) consensus on December 28. The suggestion involves reducing validator signatures to streamline the workload on the Ethereum Blockchain. This move aims to enhance the efficiency of Ethereum’s PoS mechanism. The market response is positive, with ETH gaining almost 5% throughout the week.

“Big Picture: Upcoming Weeks’ Key Economic Events”

Note: “Events in red font signify severe impact, while those in yellow indicate moderate.”

Bitcoin Technical Analysis

Summary:

• The current sentiment around BTC is neutral. (Expecting the sideways movement )
• This week, BTC took a resistance from $44,500 level again and decline to incline trendline support. BTC has formed an ascending triangle which is a bullish continuation pattern. Secondly, BTC is still holding above 20 EMA D strongly, which is a positive sign.
• For those looking to acquire BTC, key support levels to consider are around $42,100 (trendline support), $40,600, and $37,800. On the upside, resistance levels include $44,500-$45,000 & $47,000-$48,000.
• It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries.
• Additionally, setting limits to manage potential losses is prudent. For profit-taking, strategically selling near the outlined resistance levels/support levels is a recommended approach. Always exercise caution and implement sound risk management practices in trading endeavors.

Ethereum Technical Analysis

Summary:

• The current sentiment around ETH appears bullish.
• This week, ETH has continued an uptrend reached a new higher high of this year and also outperformed Bitcoin. ETH also touched a key resistance level at $2450 and is holding slightly below it. ETH’s Chart looks bullish with the confirmation of bullish patterns in HTF+ LTF and EMA’s
• Significant support levels include $2330, $2200 (retest level), $2130, and $2019, while resistance levels to watch are at $2450 and $2650. These levels play a crucial role in determining potential price movements.
• It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries.
• Additionally, setting limits to manage potential losses is prudent. For profit-taking, strategically selling near the outlined resistance levels/support levels is a recommended approach. Always exercise caution and implement sound risk management practices in trading endeavors.

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