A Show Of Strength
Bitcoin finds bidders and possible S/R flip
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
Do Kwon extradition approval canceled by Montenegro court (The Block)
BlackRock's proposed spot bitcoin ETF gets a ticker in latest filing with SEC (The Block)
Improbable sells gaming venture for $97M, shares 2024 metaverse predictions (CoinTelegraph)
Spot Bitcoin ETF will be ‘bloodbath’ for crypto exchanges, analyst says (CoinTelegraph)
Solana, Avalanche Meme Coin Fever Continues as Bitcoin Nears $43K (CoinDesk)
Access to Binance's Law Enforcement Request Panel Is for Sale for $10K (CoinDesk)
Zcash founder Zooko Wilcox steps down as CEO of Electric Coin Co. (Blockworks)
BONK’s price pumped harder around Coinbase listing than any other crypto this year (Blockworks)
Elizabeth Warren: Crypto Industry Lobbyists 'Undermine' Anti-Terrorism Efforts (Decrypt)
Genesis eyeing tax benefits after blocking DCG sale (Protos)
Why DeFi protocols love to offer ‘points’ before airdrops (DLNews)
BTC Outlook
Bitcoin’s current price rally is the longest the price has remained above the 50 day moving average consecutively in 2023. Currently, it’s been 70 days since the price last touched the 50 day MA and has risen 60% since then. The 50 day moving average itself is continuing to climb rapidly to the top of our suspected trading range around $42k.
We suggested last week that it would be significant whether or not BTC was able to find support at the $42k level. Finding support hints a S/R (support/resistance) flip where the suspected resistance at $42k now becomes support at the bottom of an even higher trading range. Likely, if this support holds the new range would be between $42k and the ATH.
Considering that Bitcoin’s next halving will occur in mid 2024 it’s not far fetched that $42k to $69k becomes the trading range for early 2024. Bitcoin’s 4 year cycle has repeated 3 times in a row and there is nothing hinting why anything should be different this time. The halving puts constraint on supply and if the demand remains similar or the same then on the margin the price should rise. In the short term, focus still remains on the ETF approvals expected in early January, which could add an extra catalyst to the already strong upward momentum.
It’s still important to keep an eye on this potential S/R flip at $42k going into the end of the month. A daily candle close below this support and any signs of resistance could be a signal to scale out of long positions into cash or even consider shorting.
Join us in discord where we will actively be following Bitcoin’s price action as well as other markets including equities, altcoins, and commodities.
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 likely to happen in the first two weeks of January
The Bears’ Prosecution:
Price has reached a key resistance level and lost momentum
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