Weekly market recap (from Dec 5th to Dec 12th)
Over the weekend, many BTC ETF applicants submitted revised prospectuses to the SEC. Among them, well-known asset management companies such as BlackRock and Fidelity discussed the redemption assets of BTC ETF with the SEC and finally determined that they would be redeemed like cash. Everything is going on in an orderly manner.
The crypto saw a significant dump on Monday and did not recover the extent of its losses within 24 hours. FOMO gradually weakens. However, there has not been any change in the macro perspective, and the decline is just a correction in pricing. Our research department has reviewed the trend of the history of BTC. In past bull markets, there have been relatively obvious drawdowns, with a magnitude greater than 30%. The largest drawdowns in the bull market that started in 2023 has been 20%, which is smaller than the average.
BTC
BTC broke above the given resistance level last week and gave back its gains on Monday this week. Judging from the trading volume, it is not significantly higher than in the past. We still maintain the previous resistance level of 43000 and the support level of 38000. From an indicator point of view, the ME indicator maintains the purple wavy area, indicating that BTC continues to maintain a bullish trend. As for the WTA indicator, we mentioned in the last recap that the second round of rise (38000–44000) did not have many blue bars representing whales. This aspect can be compared with the first round of rise (27000–35000) . In this case, the destructive candle appeared on Monday, indicating that the second round of rise has been ended.
Switching to the 4h level, the purple wavy area displayed by the ME indicator gradually narrows. And we can see that there were a lot of whales involved in trading during the decline, but not many whales in the rebound. Most whales cut their profits.
To sum up, we believe that BTC will remain bullish in the long term, but may remain volatile or fall further in the short term.
ETH
Like BTC, ETH rose above the given resistance level last week but quickly fell back down. The lows for the week are close to our support level. There needed to be more trading volume on the way down. We maintain the previous resistance level of 2300 and the support level of 2120. The ME indicator shows that ETH remains bullish, but the purple wavy area is beginning to narrow. It can be seen from the WTA indicator that there are not many whales participating in this round of rise (2100–2400). With the appearance of Monday’s long rainbow candle, the current uptrend has ended.
At the 4h level, the ME indicator shows that ETH continues to maintain a bullish trend. Like BTC, after the long red candle appeared, whales eagerly participated in the transaction, causing ETH to fall further.
To sum up, ETH is a follower of BTC. ETH remains bullish at large levels, but the current pullback is likely not over.
Disclaimer: Nothing in the article constitutes investment advice. The article objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions based on the information contained in the article are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
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