Cardano (ADA) has enjoyed a multi day rally however is now losing momentum. Price has been in a bearish market for the last 6 months, and we anticipate this long term trend to continue.
Technically price has pulled back into a key structure zone, which is now acting as resistance. Price has also formed a bearish candlestick rejection of this zone, and the RSI has shown overextended levels.
BTC/USD has made a rebound from the daily trendline support, but is still capped by the resistance trendline.
We are anticipating upside on bitcoin today on the short term timeframe, but overall are bearish. We’re looking for price to fill the inbalance on the 1H chart (see below). The RSI has also breached overextended levels, and we anticipate this next push up to form bearish divergence for the RSI.
To summarise – upside into resistance at $45,000 seems likely.
BTC Options Market Increasingly Bullish
While Bitcoin has been busy printing lower and lower prices options traders have reportedly been increasingly bullish seemingly in an effort to “buy low”. Coindesk reported today that “The one-week put-call skew, which measures the cost of puts – or bearish bets – relative to calls, has fallen from 17% to nearly 0% since late Monday”.
BNB (Binance Coin) is trending to the downside currently. Price has pulled into resistance at structure and the 50 hour moving average. I’m looking for downside from the current market price, targeting the 390 dollar mark. My stop is place conservatively above the previous highs, at 460.
Digital Asset investments funds saw outflows of USD 142 million last week in the largest weekly outflow on record. Investors pulled money out of funds focused on bitcoin, Ethereum, Solana, Polkadot and other key crypto’s as the market turned red.
After a 17 consecutive week run of inflows the tide of investment changed, and reversed significantly. The largest outflow on record previously was in early June, when outflows topped 97 million USD.
Terraform Labs and its CEO, Do Kwon, are taking on the Securities and Exchange Commission (SEC, USA regulator). Kwon claims that the SEC improperly served Kwon subpoenas despite not having jurisdiction over Kwon or his company. Terraform Labs has asked a New York court to dismiss the subpoenas.
The SEC’s lawyers didn’t get permission from the commissioners to subpoena Kwon, which must be done in cases where the subpoenaed party is represented by lawyers. The argument Kwon’s lawyers are claiming is that Kwon was improperly served which renders the subpoenas invalid.
Isn’t it great to see crypto companies sticking it to the SEC!
Wrapping Up 2021 In Crypto
This year digital assets shocked the world, with mainstream adoption happening fast as lighting. The most dramatic changes to the emerging market in history have happened this year, so lets go over what’s happened.
Bitcoin Broke High After High
Bitcoin started the year on the front foot, rallying in the first week to an all time high of around $40,000 (USD). At this point many traditional asset managers started voicing concerns about the “short shelf life” of bitcoin focused funds and portfolios (Jeff Dorman).
Firms such as Ruffer Investments capitalised significantly on the appreciation, exiting positions as Crypto currency prices became increasingly speculative.
By the end of January Bitcoin had dropped around 30% from its all time highs, and Scott Minerd, the CIO at Guggenheim Global Investment Firm expressed doubts over Bitcoin’s ability to hold support around the $30,000 mark.
After many significant changes in the market Bitcoin has now formed an all time high of $69,000. Amusing.
Stay tuned in the next for more updates in the 2021 Crypto wrap up!
The market is moving. Bitcoin has stabilised slightly around the $47,000 mark following a multi day bear rally. Since printing ATH at $69,000 (Glad to see that crypto traders have a sense of humour) on the 10th of November BTC has dropped to $41,967 and has now stabilised above $45,000. That is a drop of 39.18% in just under a month! Bitcoin now holds itself at 69.3% of its all time high value.
What Is Next For BTC?
Bitcoin is currently holding support above the 200 day moving average. The 50, 100, and 200 day moving averages all are holding in a bullish cross currently, another bullish indication.
“Bitcoin and [Big Tech] are getting punished today as investors reallocate some of their more profitable risky bets,” ~Edward Moya. There is a lot of repositioning happening at the moment in crypto markets, so be wary of where the money is going.
BadgerDAO $130M Hack
In early December a front end exploit of BadgerDAO resulted in a $130 million drain of locked funds.
According to BadgerDAO’s founder Chris Spadafora, the restitution plan will depend upon the contribution of Badger’s 32,000 users. The losses are significantly larger (about 2.4x) than Badger’s treasury of roughly $53M.
This may be the largest and most complex restitution plan in decentralised autonomous organisation (DAO) history.
Melania Trump Launches NFT Platform
Melania Trump (Former FLOTUS) announced that she is launching an NFT Platform. Melania’s debut NFT is titled “Melania’s Vision” and features a watercolour style artwork with a voice narrating.
The cryptocurrency market is on sale at the moment and Cardano (ADA) is no exception. Price has taken a plunge into a key demand zone around the $1.20 – $1.00 price zone. At this price ADA is certainly deemed cheap, and these relatively low prices won’t last for long.
Technically speaking The RSI is showing bullish divergence and over extended levels and price is below the 50-200 day moving averages (price is cheap compared to the last 50-200n days).
Bitcoin rose on Sunday, recovering from the losses it experienced on Black Friday. Interestingly enough, many analysts are tying the 8% drop in price to concerns about the new Omicron strain of Covid-19 (I know, we’re all over hearing about new reasons for governments to enforce lockdowns, aka “strains”).
Prices for many altcoins also plummeted on Friday, despite positive crypto news being released (El Salvador doubles down, Ethereum breaks above 4M+ unique addresses). Similar to traditional financial markets, cryptocurrencies could enjoy some risk on/off moves with the emergence of the new covid strain.
El Salvador Doubles Down On Bitcoin
The El Salvador government bought 100 more Bitcoin. El Salvador President Bukele tweeted about the purchase on Friday “El Salvador just bought the dip. 100 extra coins acquired with a discount”.
On the 20th of November Bukele announced plans for an entire city to be built based upon bitcoin.
Currently Bitcoin is trading around $57,400.
Celsius CFO Arrested
Yaron Shalem, the CFO of Celsius (a cryptocurrency lender) was arrested last week. The charges were tied to Shalem’s previous role as CFO at Singulariteam, whose founder was arrested last week as well on money laundering & other charges.
Celsius made a public statement quickly after, confirming that the arrest was not in relation to Shalem’s role at Celsius, and that Shalem was immediately suspended.
Celsius also confirmed that no assets of theirs have been misplaced or mishandled.
Both Singulariteam’s founder, Hogeg, and Yaron Shalem have been targeted in court previously. The two were both named in a lawsuit that alleged they dipped into investors funds for his own use.