Macro Overview
- U.S. Final GDP Growth Slows to 4.9% in Q3 2023: The latest reading of the U.S. real gross domestic product (GDP) for the third quarter disappointed expectations, showing a growth rate of 4.9%, down from the second estimate of 5.2%. This figure fell short of the 5.1% rise anticipated by economists surveyed by Dow Jones.
- Weekly US Unemployment Claims Show a Decline: The weekly report on US unemployment claims reveals a decline, with figures coming in at 205k compared to the anticipated 214k. 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 markets experienced a 3.16% uptick, bringing the total market capitalization to $1.614 trillion. Notably, BTC saw a rise of 2.90% and ETH saw a rise of 1.14%. Bitcoin’s dominance stands at 52.87%, while Ethereum’s holds at 17.09%.
- China Embraces Web3 and Blockchain Despite Crypto Ban: China’s Ministry of Industry and Information Technology aggressively embraces Web3 and blockchain technologies, signaling a strategic shift in the country’s approach. Despite a ban on crypto mining and trading, this initiative positions China to become a leader in decentralized technology, contributing positively to the broader crypto space.
- Bitwise Readies for Bitcoin ETF Decision with Marketing Blitz: Bitwise, a crypto fund group, gears up for an anticipated SEC decision on a spot Bitcoin ETF by January 10. The looming decision has triggered what industry experts predict to be the start of a marketing battle among various crypto players. This development is perceived positively within the crypto space, as the industry eagerly awaits potential breakthroughs in ETF approval.
- Argentina Contracts Open to Bitcoin and ETH Payments: In a groundbreaking move, Argentina allows citizens, businesses, and the government to accept payments for contracts in Bitcoin and Ethereum. This bold experiment signals a shift toward monetary diversity, a departure from the dominance of traditional currencies. While the country grapples with economic challenges, the move aligns with global trends exploring alternative forms of payment.
- UK Collaborates With Crypto Industry for Digital Securities Legislation: The UK government announces plans to collaborate with the crypto industry on legislation for digital securities. This proactive approach aligns with the country’s ambition to establish itself as a crypto industry hub. The collaborative effort reflects positive engagement between regulators and the crypto sector, fostering a supportive environment for digital securities.
Top Tokens Update
- Cardano Foundation Partners With Petrobras for Blockchain Education: Cardano Foundation announces a partnership with Petrobras, focusing on blockchain education. The collaboration aims to expand understanding and adoption of blockchain technologies. ADA, Cardano’s native token, experiences a positive response in the market, gaining over 5% throughout the week.
- Immutable Launches “Passport” Feature for Web3 Gaming: Web3 gaming company Immutable introduces “Immutable Passport,” a user-friendly wallet infrastructure. The new feature allows users to create and recover wallets using Google or Apple accounts, enhancing accessibility and security. IMX, Immutable’s native token, reflects positive momentum, rising more than 12% this week.
- Solana Makes History, Surpasses Ethereum in DEX Trading Volume: Solana achieves a significant milestone by surpassing Ethereum in 24-hour trading volume on decentralized exchanges (DEX). With over $1.475 billion in trading volume, Solana outpaces Ethereum by $300 million. This achievement, coupled with surpassing BNB Chain in daily active users, drives SOL token to a more than 30% increase this week.
“Big Picture: Upcoming Weeks’ Key Economic Events”
| DATE | TIME | EVENT | USUAL EFFECT |
| Dec 28 | 7:00 PM | US Unemployment Claims |
Actual’ greater than ‘Forecast’ is good for crypto
|
| Dec 29 | 9:30 PM | US Bitcoin Futures Expiration | – |
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. (Considering the past trend of low volume during Christmas week)
- This week, BTC bounced back from the support level at $40,600 and is currently trading slightly below the key resistance level at $44,500. BTC needs to clear this key resistance to continue its uptrend. BTC is 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 (20EMAD), $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 given a breakout from the downward channel with the volume and other indicators confirmations, implying continuation of an uptrend. Secondly, ETH is positioned above the 20EMA D, indicating a positive sign in its price movement.
- Significant support levels include $2220 (20EMA D), $2130, and $2019, while resistance levels to watch are at $2380 and two key levels – $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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