Weekly Market Recap (from Jan 2nd to Jan 8th)

Sypool Protocol
4 min readJan 9, 2024

On January 8, most BTC ETF applicants submitted updated documents on time. According to the latest news, some applicants such as BlackRock and Invesco have submitted BTC ETF securities registration applications to the SEC and have deposited seed funds. At the same time, BTC pumped to $47,000 and recovered the losses of last week.

We believe that the approval of BTC ETF is just a matter of time, as Bloomberg crypto analyst James Seyffart said that multiple BTC ETFs may be approved at the same time. But before that happens, the crypto market may fluctuate significantly due to various rumours, but the long-term bullish trend will not change.

BTC

BTC (1D)

BTC continued to fluctuate last week and broke through the previous high on Monday, reaching 47000. In terms of trading volume, there is no significant increase, but it is only slightly higher than the level on working days. We continue to maintain the original resistance level of 48000 and support level of 38000.

Judging from the ME indicator, BTC continues to maintain a bullish trend, and the purple wavy range has not narrowed. On the WTA indicator, we see whales diverging. The blue column representing the whale appeared during the fluctuation, but the blue column did not support the rise yesterday. This also reflects that the market is currently waiting for the SEC to give a reply.

BTC (4H)

Switch to level 4h. After BTC broke out of its highs, the purple wavy area widened and the bullish trend became more stable. Whales appear after BTC completes its breakout. The price is currently in a state of fluctuation.

In summary, the whales diverged, and it is still the BTC ETF situation that determines BTC's movement this week. Volatility may rise rapidly this week, and the price may reach the given support level or the given resistance level during the fluctuation. Hedging by going long volatility is necessary.

ETH

ETH (1D)

As mentioned in our previous recap, ETH did not break above its previous highs last week. The fluctuation lasted for a month. Our research department obtained from on-chain data that, unlike BTC, the number of ETH whales (large holders) has continued to decrease in the past year, and the big whales have split into many small ones. This may be one of the reasons why ETH is weakening in trend continuation.

On a daily level, ETH continues to maintain a bullish trend, but the purple-wavy area is shrinking. The situation reflected in the WTA indicator is the same as that of BTC. Whales appear during the fluctuation. There is no blue column support for the rise.

ETH(4H)

Switch to level 4h. Due to long-term fluctuations, ETH is currently in a slightly bearish trend from the ME indicator. During the recent rise, although blue columns appeared, the overall trading volume was declining, which also reflects the further reduction of ETH’s continuity.

In summary, the final reply to the BTC ETF this week is critical to the entire crypto market. We believe that ETH will also experience larger fluctuations due to this event. It is necessary to go long volatility to hedge risks.

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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Sypool is a synthetic asset management protocol.This is another innovation that we have migrated finance from off-chain to on-chain.