Top Of The Range
Can Bitcoin flip resistance to support?
Cheat Sheet -
Current support and resistance ranges plus our bias on top cryptos, oil, and stocks.
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What We Are Watching
We further breakdown our case for these cryptos here : What We Are Watching
Crypto News
Curvance emerges from stealth with a $3.6 million seed round for DeFi 'everything app' (The Block)
Ankr launches Rollup-as-a-Service for zkSync Hyperchains (The Block)
‘Fire in the cauldron’ as Coinbase, Marathon surge over 300% in 2023 (CoinTelegraph)
The SEC is facing another defeat in its recycled lawsuit against Kraken (CoinTelegraph)
DeFi Market Rebounds to $50B as Speculators Hunt for Yield (CoinDesk)
Pyth Oracle Network Brings Industry Heavyweights Into Governance Post-Airdrop (CoinDesk)
Is ‘hands-off’ undercollateralized lending possible? Wildcat thinks so (Blockworks)
VC firm Heartcore expands focus to Web3 via app-focused fund (Blockworks)
Ethereum DEX Matcha Aims to Make It Easier to Trade Assets Across Chains (Decrypt)
Bitcoin spikes after GTA VI trailer leak says ‘Buy $BTC’ (Protos)
How a mysterious crypto exchange used an insider trading scam to swipe $3m from wealthy victims (DLNews)
BTC Outlook
When Bitcoin’s price first rose above $31k in late October we proposed this new trading range between $31k and $42k based on the historical price structure. The main features we’ve focused on are the stall outs in May, June and July that were at the $31k resistance that is now likely to flip to support if revisited. The resistance we expected, which the price is currently fighting against, was $42k based on the large wick down that happened on December 4 2021.
The question now is does Bitcoin find support at this $42k level rather than resistance because it has risen with so much momentum and people are still expecting the ETF to add volume into the market plus the halving is next year. There are a lot of potential catalysts to keep Bitcoin’s price here at $42k and consolidate. The other possibility is many were waiting to sell at this level and will eventually exhaust the new buyers and the price will bounce in our range and find it’s way back to $31k over the early part of 2024. A third possibility is what happened in December 2020 where volatility sky rocketed and the price experienced +10% daily swings up and down - large moves up and even 50% declines within 1 or 2 months!
The prudent thing to do here would be to take profit if you were long from much lower. You can take a look at our twitter poll to see that nearly half of the respondents say they will continue to hold at $42k rather than sell or short. One thing to remember from the past which doesn’t necessarily have to repeat… but, if Bitcoin consolidates at $42k this could likely be a signal for altcoins to rise in a big way. This has happened frequently in Bitcoin’s history where it shows strength at an old resistance and then altcoins have massive gains in a short time.
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Possible Course of Action
Stay Long here while price remains above 50 day MA
Short if price falls below 50 day MA
DCA into spot long over next 6 months in anticipation of Halving (2024 summer)
The Bulls’ Defense:
ETF decision could still happen in 2023
The Bears’ Prosecution:
Price has reached a key resistance level
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