U.S. Economic Data Foils Bitcoin Bulls’ Rally Attempt To Retake $17,000

Bitcoin is retracing and might be at the end of the short-term bullish momentum; the macroeconomic data might have shifted once again against it. The cryptocurrency saw profits after weeks of trending to the downside, but the rally is losing steam. 

The number one crypto by market cap is moving sideways after the collapse of FTX pushed it below critical support. As of this writing, Bitcoin trades at $16,900. The BTC price has yet to reclaim that level at around $17,500. 

BTC’s price moved sideways after a major crash on the 4-hour chart. Source: BTCUSDT Tradingview

Bitcoin Continues The Struggle, A New Status Quo Is In The Making

Over the previous week, the market rushed to the upside on the back of a potential U.S. Federal Reserve (Fed) monetary policy pivot. The Fed Chair Jerome Powell hinted at a change in their strategy during a speech at the Brookings Institution. 

Powell spoke about moderation for the first time in months since hiking interest rates to slow down inflation. During this speech, the Fed Chair said:

Thus, it makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down. The time for moderating the pace of rate increases may come as soon as the December meeting.

Bitcoin, crypto, and legacy financial markets were trending to the downside due to this monetary policy. Powell speaking of moderation gave them room to rally, but today the U.S. posted data on its job sectors that killed the bullish sentiment in the market. 

The nonfarm payrolls and private payrolls came in hotter than expected. The market was expecting much lower results. The metrics recorded 263,000 and 221,000, respectively. This data hints at a strong jobs market, which contributes to inflation, and allows the Fed to keep hiking rates. 

OOPS! No Goldi-lockish US jobs data. A bit too hot! pic.twitter.com/djivTXhgy0

— Holger Zschaepitz (@Schuldensuehner) December 2, 2022 

Immediately after this data became public, the market began pricing in a higher probability of a 75-basis point (bps) hike in interest for December. Analyst Ted Talks Macro believes the previous week’s rally and subsequent price action could be part of a new status quo. 

The market might be stuck in a game of ping-pong, a game of frustration, between bullish and bearish forces. A strategy employed by the Fed to keep inflation in check without harming the economy. Ben Lilly, Co-Founder at analytics firm Jarvis Labs, said the following about the status quo in the markets in response to Ted’s thesis:

This process of bullish macro conditions, met shortly after with a reason to be hawkish (moving goalpost/expectations of FED action) is a level of uncertainty that is strategic. If things are stressing ever so slightly and rates need to settle… what’s your next option? This.

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Chainlink May Rise 25% This Week As Bulls Work To Reclaim Its Pre-Crash Value

The use of the native token of Chainlink is seeing a decent rise. Today alone, the price of LINK has increased by 2.0% in the last 24 hours, as measured by statistics from CoinGecko. Though not a big deal in terms of massive increases, it pumps up the bulls.

In the weekly and bi-weekly timescale, the token shot up to 11.6% and 22.4% respectively. Meanwhile, let’s take a quick look at how the token has been performing:

• The Proof-of-Reserve mechanism used by Chainlink is open and trustworthy, which encourages investment
• CoinGecko has observed a surge in price, an indication of rising investor interest
• Negative confirmation delays any decline, while positive indicators and investor optimism ease the breach at $7.808 barrier

This price movement made by LINK is just after BTC’s pullback. Not to mention that Chainlink’s official Twitter released its own version of a Proof-of-Reserve system.

According to the Tweet, this transparent system will satisfy the demands of consumers, especially after FTX’s mismanagement of user funds that resulted in the downfall of the crypto exchange.

Investor Confidence Needs Boost?

With investor confidence low, the price increase can be explained by the recent rise in BTC and the introduction of Chainlink’s POR system. As of this writing, the correlation between Bitcoin and LINK is 0.82.

However, the token’s price may experience a period of correction if the trust boost that prompted the recent price surge is reversed.

Chart: TradingView

As the time of writing, the current market pullback experienced rejection at the $7.80 level, but investor confidence must be high as CryptoQuant noted a decrease in exchange reserves. 

Messari demonstrates that LINK’s indicators reflect an upward price trend. Sharpe’s ratio is 0.68, suggesting that the asset is lucrative despite its inherent risk.

LINK is currently trading at $7.60, up 11.4 percent in the last seven days, data from Coingecko show.

But can LINK maintain its current momentum? It appears that it can. Daily RSI values are increasing, indicating a protracted and sustained bullish trend in the intermediate and long-term.

The middle Bollinger band confirms this momentum, as it supports the price movement.

Connecting The Dots

However, CMF is currently -0.13, indicating that the market mood is still pessimistic. Previous price fluctuations also signal a demand block that might support a more robust bull run.

In the next days or weeks, the price of the Chainlink token is expected to rise. Chainlink is seen making a 25% rally this week, as Bulls work to recover the token’s recent losses.

If the ascending triangle reinforces the rejection at $7.808, bulls can attempt to retarget this level from the current rally’s support level of $6.709.

Once a breakthrough occurs on the rejection, it will be easier to target LINK’s price prior to the FTX crash.

LINK total market cap at $3.86 billion on the daily chart | Featured image from Mapping it Out, Chart: TradingView.com

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Tron Adds 1.75 Million New Addresses In Last 7 Days As TRX Regains Previous Losses

TRON (TRX) took a heavy hit during the first half of November following unfortunate events such as the implosion of FTX, an exchange that was once considered the third largest in the world.

According to data provided by Coingecko, from its $0.064 price on November 6, TRX went on a steady decline until it plummeted to $0.046 on November 14.

After that, the cryptocurrency managed to stage a rebound and continues to do a relatively good job at recovering its losses.

In fact, at the time of this writing, TRON has managed to tally a 19% jump from its November low, trading at $0.054.

Over the last two weeks, the digital asset seems to have found its groove as it continues to shake off the negative effects of both the crypto winter and the FTX collapse.

Tron Report Reveals Project Capable of Attracting More Users

As another week came to a close, Tron blockchain, via Twitter, shared some important data pertaining to its performance for its community.

According to TRON DAO’s post, the project managed to add 1.75 million new addresses within the last seven days, pushing its total tally to 123.3 million accounts.

#TRON Weekly Report 11.21 – 11.27

#TRON blockchain height exceeded 46.23 million. The total number of accounts on #TRON reached 123,377,790. The total number of transactions on #TRON reached 4.28 billion. The #TVL on #TRON reached $9.4 billion.https://t.co/29s3o8NKuH

— TRON DAO (@trondao) November 30, 2022

Also, during the same period, the total number of transactions facilitated on the blockchain network reached 4.28 billion.

In terms of total value locked (TVL), from November 21 to 27, the project was able to hit the $9.4 billion mark after registering an increase of roughly $400 million. Meanwhile, the Tron blockchain height surpassed 46.23 million during the same timeframe.

The data, according to Tron, seems to prove that given the right conditions, the project is capable of enticing millions of new users to join its ecosystem. It also indicates there are still many individuals that believe in the blockchain’s potential.

3 Main Problems TRX Is Facing

Although it is hovering around the $0.054 at the moment, TRON is not yet out of the woods as there are still challenges that could cause it to plummet once again.

According to some experts, the cryptocurrency is left to deal with the fact that many people lost their faith in the digital asset class following the collapse of the FTX exchange platform which filed for Chapter 11 Bankruptcy on November 11.

TRX is also facing fierce competition from projects such as BitGert (BRISE) and Centrex (CENX) which are, according to experts, having better adoption numbers when compared to the Tron token.

Finally, within the last few weeks, there has been an apparent instability within Tron network as investors panicked when USDD (the project’s algorithmic stablecoin) lost its peg to the US dollar.

These could trigger another price dump for the crypto asset, therefore investors and prospective buyers are advised to keep an eye on these to help them with their decision making.

TRX total market cap at $5 billion on the daily chart | Featured image from Car and Driver, Chart: TradingView.com

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Huobi Token Breaches $7 Marker Following Update On This Planned Coin Unveiling

Huobi Token (HT), a cryptocurrency trading exchange asset with an overall valuation of $868 million, recorded a significant uptick in its price after an announcement made by Justin Sun, the founder of the Tron blokchain.

According to data from Coingecko, on November 29, the asset went up by 13% and peaked at $7.22 before entering a correction phase that made it return to the $6 territory.

At the time of this writing, tracking from the online crypto information provider indicates the token is changing hands at $6.63, declining by 2.9% during the previous 24 hours.

Still, the altcoin is sitting on a 20% gain over the last seven days and has tallied an impressive 44.3% jump for the past two weeks.

This momentary surge of the Huobi Token might have been triggered by news of plans to launch a new crypto project.

Sun Teases Debut Of Dominica Currency (DMC)

Using his Twitter account, Sun – who was recently appointed by Huobi to be a member of a new global advisory board – announced the launch of the Dominica coin.

The exchange platform confirmed this development with an official statement, saying that the soon-to-be-released digital asset, which will be called Dominica Currency (DMC), will be introduced to the public via the Huobi Prime – the company’s only platform for token offerings.

There was no definite timeline mentioned as to when the new crypto will be available but the Bitcoin exchange said it will be airdropped to their users.

Along this line, Huobi also said that their users can use their Dominica digital identification documents (DID) to confirm their identities in preparation for the airdrop.

This is not the first time that the Commonwealth of Dominica, an island country in the Caribbean, advanced its crypto adoption programs as it has already made TRON and its associated native tokens legal tender within its jurisdictions.

As Island Nation Anticipates, Interest For Upcoming Project Grows

Although there is no clear timetable for the expected airdrop of Dominica Currency, the excitement for it is undeniable as it comes with a utility feature that is sorely lacking for many cryptocurrencies out there right now.

For its part, the Huobi Token is expected to play a vital role for the good performance and overall success of the DMC that is pivotal in giving holders greater chances for higher return on their investments.

With this development, HT managed to surge in value. Moreover, its technical indicators are pointing at a further climb, although the volatility of the market can once again obliterate all its recent gains.

Crypto total market cap at $808 billion on the daily chart | Featured image from Crypto News, Chart: TradingView.com

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Ethereum Price Holds Strong at $1,250: A Strengthening Case for Upside

Ethereum spiked above the $1,300 resistance zone against the US Dollar. ETH is correcting gains, but it remains supported near $1,250 and $1,230.

• Ethereum gained pace for a move above $1,300 before the bears appeared.
• The price is now trading above $1,250 and the 100 hourly simple moving average.
• There was a break below a major bullish trend line with support near $1,280 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could correct further lower towards the $1,250 and $1,230 support levels.

Ethereum Price Eyes Another Increase

Ethereum price extended its increase above the $1,250 resistance zone. ETH even spiked above the $1,300 resistance zone and settled above the 100 hourly simple moving average, similar to bitcoin.

However, the bears were active abvoet the $1,300 resistance zone. Ether price traded as high as $1,309 before there was a downside correction. The price declined below the 23.6% Fib retracement level of the upward move from the $1,150 swing low to $1,309 high.

Besides, there was a break below a major bullish trend line with support near $1,280 on the hourly chart of ETH/USD. The pair is still trading above $1,250 and the 100 hourly simple moving average.

An immediate resistance on the upside is near the $1,290 level. The first major resistance is near the $1,300 level. A close above the $1,300 resistance might send the price further higher. The next major resistance is near the $1,350 level, above which ether price might test $1,400.

If the bulls remain in action above $1,400, the price could rise towards the $1,450 resistance zone. Any more gains might send the price towards the $1,500 resistance zone.

Dips Supported in ETH?

If ethereum fails to start another increase above the $1,300 resistance, it could start a downside correction. An initial support on the downside is near the $1,250 level and the 100 hourly simple moving average.

The next major support is near the $1,230 level or the 50% Fib retracement level of the upward move from the $1,150 swing low to $1,309 high. If there is a break below $1,230, the price could test the $1,180 support. Any more losses could lead the price towards the $1,150 support.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is now losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now just below the 50 level.

Major Support Level – $1,230

Major Resistance Level – $1,300

Featured Image by iStock

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Bitcoin Price Starts Technical Correction, Here’s Key Support To Watch

Bitcoin price traded above the $17,000 resistance. BTC is correcting gains and might decline towards the $16,650 support zone in the near term.

• Bitcoin gained pace and cleared the $17,000 and $17,200 resistance levels.
• The price is trading above $16,650 and the 100 hourly simple moving average.
• There was a break below a major bullish trend line with support near $16,980 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could correct lower towards the $16,650 and $16,500 support levels.

Bitcoin Price Faces Bears

Bitcoin price attempted a steady increase above the $17,000 resistance zone. It even broke the $17,200 level and settled above the 100 hourly simple moving average.

However, the bears were active above the $17,200 level. A high was formed near $17,319 before the price started a downside correction. There was a move below the $17,000 support zone. The price declined below the 23.6% Fib retracement level of the upward move from the $16,000 swing low to $17,319 high.

Besides, there was a break below a major bullish trend line with support near $16,980 on the hourly chart of the BTC/USD pair. Bitcoin price is still trading above $16,650 and the 100 hourly simple moving average.

On the upside, an immediate resistance is near the $17,000 level. The first major resistance is near the $17,250 zone, above which the price may perhaps start another steady increase. In the stated case, the price could rise towards the $17,800 resistance.

Source: BTCUSD on TradingView.com

The next major resistance is near $18,800, above which the price could attempt a move towards the $19,500 zone in the near term.

Dips Supported in BTC?

If bitcoin fails to start a fresh increase above the $17,000 resistance, there could be more downsides. An immediate support on the downside is near the $16,800 level. The next major support is near the $16,650 zone.

The 50% Fib retracement level of the upward move from the $16,000 swing low to $17,319 high is also near the $16,650 support. A downside break below the $16,650 support might call for a move towards $16,500. Any more losses might call for a test of the key $16,000 support zone in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.

Major Support Levels – $16,800, followed by $16,650.

Major Resistance Levels – $17,000, $17,250 and $17,800.

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Bitcoin Hits $17,000, But Is It Too Early To Call The All Clear On The Bear Market?

Bitcoin is retracing its recent week losses, and it’s about to reclaim the support lost during the FTX debacle. The number one crypto by market capitalization is displaying some short-term strength as macroeconomic conditions continue to improve. 

Other cryptocurrencies in the crypto top 10 by market cap are seeing profits. Dogecoin (DOGE) and Ethereum (ETH) are leading the rally with double digits gains in the previous week. As of this writing, Bitcoin is moving sideways between $16,900 and $17,000 and adjacent levels. 

BTC’s price moving sideways on the daily chart. Source: BTCUSDT Tradingview

Bitcoin Is Up, Is The Market Over?

Yesterday, the U.S. Federal Reserve (Fed) Chairman Jerome Powell hinted at moderating the monetary policy. The financial institution has been increasing interest rate hikes to mitigate inflation. 

The market is feeling the effects of the Fed’s policies. Unemployment metrics are increasing, the U.S. economy is slowing down, and Commodities maintain their bearish trajectory, but most importantly, the Real Estate sector took some massive damage. 

Recent data indicates that homes sale in the U.S. is experiencing their worst period in decades. This data hints at lower inflation but might spell issues for this country’s economy. If the Fed fails to act, the U.S. might enter a recession. 

Buyers evaporating due to interest rate hikes and new 30 yr cost shock of over double from 1 yr ago for monthly payment amt. Owners not listing or less likely to. Other owners sitting on high 2’s or 3% mortgages they’ll never move from. Supply & demand both dwindling, who wins? https://t.co/pZN96vS27a

— Evan Kirkpatrick (@evankirkpatrick) December 1, 2022 

The Fed might be willing to pivot on its monetary policy in this context, thus allowing Bitcoin and risk-on assets to rally and extend their bullish momentum. However, Director of Macro for investment firm Fidelity Jurrien Timmer believes it might be too soon to call a victory. 

The experts claim many other factors to consider before calling the bottom. In equities, a sector that Bitcoin is following closely, the next earnings seasons will be crucial. 

Companies must show growth early next year, or the stock market will risk another blow. So far, Timmer believes the chances of significant growth are “unlikely” as measured by the Purchasing Managers’ Index (PMI). 

This index measures the state of the manufacturing and service sectors. The metric offers a view of the current and future health of businesses. The chart below shows that the metric has room to keep crashing. 

The Purchasing Managers’ Index (PMI) has more room to crash. Source: Jurrien Timmer via Twitter

 Based on the PMI cycle, the market might see an effective relief in 2024, which has a confluence with the Bitcoin Halving. This event is a major bullish catalyzer for Bitcoin. Timmer said:

(…) It seems premature to expect a bottom for earnings anytime soon. If earnings growth won’t bottom for another year or longer, then an October price bottom seems rather ambitious.

However, Timmer also clarified that there is a precedent in which stocks rallied before a good earnings season. The market experience these rallies in the 1970s and 1990s, but as mentioned, this possibility is unlikely in the current environment. 

Of course, in our current cycle, earnings growth peaked coincident with price, so the market might follow a more conventional playbook rather than repeat that hopeful outlier from the early 1970s. /END

— Jurrien Timmer (@TimmerFidelity) December 1, 2022 

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