Weekly Market Recap (from Jan 9th to Jan 15th)

Sypool Protocol
3 min readJan 17, 2024

As predicted in our last recap, all 11 BTC ETFs were approved. A new era has arrived for crypto. This means that more American entities will be able to purchase BTC through asset management companies. We learned from Bloomberg that the the trading volumes of the 11 BTC ETFs in the first two trading days were $4.6 billion and $3.1 billion respectively. Although for GBTC, many speculators chose to sell and leave, more funds entered the BTC ETF.

After the BTC ETF was approved, BTC did not break through 50000, but ETH rose even more. We mentioned in the previous recap that the BTC ETF may have been priced ahead of time. Of course, this part is only for approval and will not affect the long-term bullish trend. So it’s understandable when traders start going long on the ETH\BTC rate. The picture above is what we used in the previous recap to show how far ahead BTC is relative to ETH. However, after ETH rose, BTC and ETH have almost returned to the same level. After all, the market will begin to price the ETH ETF and the upcoming Dencun upgrade, which will benefit the ETH Layer2 ecosystem.

BTC

BTC (1D)

BTC did not stand above 50000 because the ETF was approved. Instead, they gave up their previous profits and returned to below 44000 again. The pin bar is very long, and the decline is accompanied by a lot of trading volume. From an indicator perspective, the ME indicator continues to maintain a positive bullish trend. But from the WTA indicator, we see the appearance of destructive candles, accompanied by blue bars representing whales. It is difficult for BTC to resume its rise quickly. We maintain resistance 48000 and support 38000.

To sum up, there is a high probability that BTC will remain volatile near the current level. The approval of the BTC ETF will allow U.S. capital to flow into the market again, and the correlation with U.S. stocks may increase, causing volatility to begin to decrease.

ETH

ETH (1D)

ETH closed the gap with BTC last week, rising above given support levels. ETH showed a long-awaited initiative. Although, like BTC, ETH experienced a correction over the weekend, the magnitude of the correction was not large. The ME indicator shows that ETH maintains its bullish trend. Although ETH faces the same situation as BTC on the WTA indicator, and it is difficult to recover from the short-term rise, it does not destroy the bullish trend at a large level. We raised the resistance level to 2700 and the support level to 2200.

In summary, ETH may continue to outperform BTC this week, and we believe that ETH may hit a given resistance level.

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 Protocol

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