Market update
Cointree Crypto Market Update - November 30th 2022
Market report for traders
BTC and altcoins
Over the last seven days, bitcoin has climbed 3.64% to AU$25,056 at the time of writing. Meanwhile, Ethereum has risen 7.28% at AU$1,847 week-on-week. And in other altcoin movements, Cardano has lifted 1.59%, Solana retracted 3.49%, while Avalanche and Polkadot rose 1.43% and 2.82% respectively.
What’s happening in the world of crypto?
While there has been a lot of fear, uncertainty and doubt (FUD) in the market over the past few weeks, investors appear hopeful about the future of DeFi. According to a new report, US$6.5 billion has been poured into the space over the past 12 months, far outstripping the second most-backed space of fintech.
Although some investors have run to DeFi others are running to DOGE...
Dogecoin (DOGE) continued its two-week rally, climbing another 6% in the last 24 hours, and at the time of writing is up 25% week-on-week. The ongoing rally is likely fueled by unconfirmed rumours that the meme coin could become part of Twitter's potential plans to launch its own payment system.
FTX contagion continues…
Wrapped Bitcoin (WBTC), the Ethereum network's leading wrapper for Bitcoin, has continued to trade at a slight discount to bitcoin since mid-November. The discount appears to have been sparked based on data from Messari's dashboard on Dune Analysis, which says FTX's sister company, Alameda Research, was a top WBTC merchant by the number of tokens minted.
However Chen Fang, Chief Operating Officer for BitGo, WBTC's official custodian, quickly clarified that every WBTC is "1:1 backed and verifiable on-chain".
And BlockFi, the latest crypto casualty following the FTX collapse, has filed for Chapter 11 bankruptcy protection in the United States.
BlockFi had been on the verge of bankruptcy and had announced two weeks ago that it was considering filing for bankruptcy. It also halted withdrawals and restricted platform activity.
This isn’t the first time the lender has been on the brink of bankruptcy, FTX saved it from near-bankruptcy in June this year.
And just as you thought it couldn't get any worse for Sam Bankman-Fried (SBF), the CEO of BlockFi is now suing SBF to obtain his shares in Robinhood.
Project news:
- Solana-based crypto wallet Phantom is expanding to Ethereum and Polygon blockchains
- MakerDAO voting on hiking DAI stablecoin rewards
- Theta Mainnet 4.0 launches on December 1
Technician’s Take
🔔 Alert Ideas are presented throughout to help identify key levels of interest that may signify significant shifts in market performance. Cointree members can set a price alert directly from their Cointree account.
Weekly chart - Bitcoin is consolidating sideways
Bitcoin (BTC) has continued its sideways consolidation between AU$24,000 and AU$25,500
Daily chart - Bitcoin’s volatility has dropped
Bitcoin (BTC) has not done much in the last seven days with a smaller body range and Doji candles with below-average volume. Doji candles usually mean that the market is in equilibrium and not sure in which direction it would go next. One thing that was clearly visible was a huge drop in volatility where the Average True Range (ATR) dropped from 4.53 to 2.63. This low volatility is very similar to the prior break of major support on AU$25,500.
For the bulls, there is a possibility that BTC is under accumulation between AU$23,000 to AU$25,000. To prove if this is the case then it needs to break its resistance at 21 day Exponential Moving Average (EMA) of AU$25,500 and 50 day Simple Moving Average (SMA) with above-average volume.
For the bears, they would want to see BTC break the support of AU$23,400 with above-average volume. The daily RSI (Relative Strength Index) has shown an uptrend momentum that has increased from 32 to 43. If the major support of AU$23,400 breaks then it would likely go to the next support of AU$20,000.
🔔 Alert Ideas breaking below resistance of AU$23,400 could indicate an uptick in bear activity, suggesting further weakness.
Key:
- 50 Simple Moving Average (SMA), blue line
- 200 Simple Moving Average (SMA), black line
- 21 Exponential Moving Average (EMA), red line
Beginners recap
- Bitcoin in sideways consolidation
- Bitcoin is in a range between AU$24,000 and AU$25,500
Disclaimer: The information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.
