Macro Overview
- Weekly US Unemployment Claims: The weekly report on US unemployment claims reveals a decline again, with figures coming in at 187k compared to the anticipated 206k. While the drop indicates strength in the job market, it introduces a slight negative influence on the crypto market due to its historical inverse relationship with cryptocurrencies.
Crypto Markets Overview
- Market Movement: This week, the crypto market experienced a -5.79% fall, bringing the total market capitalization to $1.56trillion. Notably, BTC saw a fall of -7.5% and ETH saw a fall of -3.30%. Bitcoin’s dominance stands at 51.43%, while Ethereum’s holds at 18.35%.
- SEC Delays Decision on Fidelity’s ETH ETF Proposal to March: The U.S. Securities and Exchange Commission (SEC) delays its decision on Fidelity’s proposal for a spot Ethereum exchange-traded fund (ETF) until March 5th. This postponement, aimed at further deliberation, prompts a fall in Ethereum’s (ETH) price. The extended timeline creates anticipation and extends the waiting period for Fidelity’s ETF approval, with a competing proposal from VanEck also in consideration.
- Bitcoin ETF Becomes Second Largest Commodity Asset Class in the U.S. : Within a week of approval, Bitcoin’s exchange-traded fund (ETF) surpasses silver, becoming the second-largest commodity asset class in the U.S. in terms of assets under management (AUM). With over $27 billion in AUM, Bitcoin’s ETF demonstrates strong market interest and positions itself behind gold with approximately $96 billion in AUM.
Top Tokens Update
- Chainlink Integrates with Circle’s CCTP Protocol for Cross-Chain USDC Transfers: Chainlink integrates with Circle’s cross-chain transfer protocol (CCTP) within its CCIP system, facilitating secure USDC stablecoin transfers across different blockchains. Chainlink’s integration with CCTP contributes to its strength, with LINK exhibiting a gain of over 5% for the week.
- Solana Mobile 2.0 Records 30,000 Pre-Orders in Less Than 48 Hours: Solana Mobile 2.0, the upcoming smartphone edition, garners an impressive 30,000 pre-orders in under 48 hours, reflecting significant consumer interest in blockchain technology. The substantial pre-order figures for Solana Mobile 2.0 signal potential positive impacts on the SOL coin and the broader Solana ecosystem.
- Conflux Network Developing EVM-Compatible Solution for Bitcoin Interoperability: Conflux Network, a layer 1 blockchain, is developing an “EVM-compatible” solution focusing on interoperability with Bitcoin. This solution aims to facilitate the transfer of bitcoin and inscription-based tokens between Conflux and Bitcoin networks. Anticipated to launch a testnet by the end of March and a mainnet by May, the project explores novel ways to interact directly with Bitcoin.
- Render Network Product Referenced in Apple Event, But No Crypto Integration Mentioned: During an Apple event, a product linked to the Render network (RNDR) was referenced, offering distributed GPU rendering on the blockchain. Although the AI-based crypto token gained recognition, no mention of crypto integration or updates was made during the WWDC conference. The possibility of Apple partnering with OTOY Inc., associated with Render, is speculated.
- Dogecoin Rallies Amid Speculation of X Payments Integration: Dogecoin (DOGE) experiences a notable surge, rising by up to 12.8%, coinciding with anticipation around the launch of a dedicated payments account by Elon Musk’s X platform. Musk’s previous endorsement of DOGE and X’s increasing focus on financial services, including the pursuit of money transmitter licenses, fuel trader speculation about Dogecoin potentially being integrated into the platform’s offerings.
- U.S. Banks Poised to Embrace XRP for International Payments: Amid hints from Ripple CEO Brad Garlinghouse and influential commentator Ben Armstrong, indications emerge that U.S. banks may adopt XRP for international payments. The news adds a positive dimension to XRP’s outlook, aligning with expectations of broader adoption in the financial sector.
Bitcoin Technical Analysis
Summary :
- The current sentiment around BTC is bearish.
- This week, BTC dropped below key support level ,20 EMA Daily and 7 EMA Weekly implying bearishness. On Weekly timeframe, the last candle close was highly bearish. On Daily and 4 Hour time frame, BTC is sliding in downtrend with no signs of reversal.
- This bearish outlook is supported by patterns in lower timeframes and the overall bearish price action/indicators. Key support levels to consider are around $37,000-$38,000 (20 EMA W) and $34,375. On the upside, resistance levels include $43,000 ,$44,500 and $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 bearish.
- This week, ETH failed to make a new higher high and it appears to be back in the range, also the price dropped below 20 EMA D implying bearishness which is further supported by bearish RSI divergence.
- Significant support levels include $2280 ,$2175 and $2015, while resistance levels to watch are at $2700, $2900, and $3300 .
- 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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