Bitcoin may see another bout of volatility after a boring weekend

Bitcoin price dropped down to \(16,550 from \)18,400 last week as Fed chair, Powell, spoke about the future of rate hikes in the coming year, dashing the market’s hope of a major pivot. However, we’ve stayed above $16,550 over the weekend and a relief bounce is expected to fill in the imbalances and punish late shorters on high leverage or tight stop losses.

Meanwhile, the S&P 500 is within its support band which lasts till 3,850, but continues to weaken every day. DXY on the higher is starting to form higher highs and higher lows pulling itself back up to 104.67.

Top  altcoin gainers and losers

Gainers

• XDC Network XDC (+8.18%)
• Neutrino USD USDN (+3.55%)
• Fei USD FEI (+3.17%)

Losers

• Toncoin TON (-6.28%)
• Chiliz CHZ (-5.90%)
• Unus Sed Leo LEO (-4.98%)

Bitcoin Technical Analysis

Bitcoin had a decent run from its range low to range high in the last two weeks, grabbing most if not all of the liquidity. Such liquidity cycling is a rinse and repeat process which requires structure. With our recent local top, we expect a shift in market momentum and structure which should pull Bitcoin back down to range lows soon. Before that, however, we have an H4 and H12 fair value gap of around \(17,300 and \)17,700 respectively, on top of that our premium discount model also expects a lower high print around \(17,400 before continuing this downtrend to \)16,000 or lower.

Ethereum Technical Analysis

Ethereum didn’t absorb the selling pressure like Bitcoin and tested much lower support levels, contrary to our expectations. It is currently unclear if we get to \(1,250 after a relief bounce or continue to move down since Bollinger bands can be seen squeezing on the H4 time frame along with some indicators signalling buyer exhaustion. If a relief bounce does not come into play we can expect \)1,100 and $1,080 to act as support.

NFT Market Map

Despite being on the top thanks to its trading volume in dollar terms, Trump Digital Trading Cards (-68.32%) saw a sharp decline in growth as the project received backlash for its licensing of the Trump brand and apparent use of stock photos with watermarks.

Meanwhile, a Trump-inspired collection called Donald Trump Yacht Club is seeing a 1,044.37% uptick in its daily volume.

Bored Ape Yacht Club (-60.33%) stepped back when a recent breach resulted in 14 BAYC NFTs being stolen and sold for roughly 850 ETH, or just over $1M.

Coin360 Daily Digest

Here’s a rundown of the major crypto market news from today.

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Disclaimer: None of the information here constitutes financial advice and market participants are advised to conduct their own research since cryptocurrencies are speculative assets with considerable risks.