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Weekly Crypto Brief 3rd December

Weekly Comment 

Last Wednesday saw the major South Korean crypto exchange Upbit lose 342,000 Ether through a security breach and hack from its hot wallet. These funds total to an estimated $50 million and since then all crypto assets have been moved into a cold storage.  Along with this deposits and withdrawals are going to be suspended for at least two weeks, Upbit has said corporate funds will be used to protect user assets. Interestingly and as an aside there have been recent rumours suggesting that the incident was not a random one but possibly an inside job.

In past articles we have mentioned the stance that India has on the crypto industry, but from recent reports it seems that the country has announced that it is working on a national block chain strategy to accelerate the technology’s adoption. Officials believe that block chain could transform a variety of sectors including governance, banking, finance and cybersecurity. This all comes after a controversial bill that proposes a 10-year jail term for those caught dealing in digital currencies was postponed with lawmakers failing to introduce it during the winter session of parliament.

It has been recently reported that China has halted operations for multiple different exchanges and with this in mind, Russia is rumoured to be considering a full ban on crypto currency as a mean of payment. Such a proposal would be a massive setback for a number of Russian programmers, designers and copywriters who receive their freelance salaries in BTC and ETH. It is believed that Moscow is concerned about the crime surrounding the crypto industry. A Senior Ministry Finance official recently said “we do not see any basis for cryptocurrencies to be used as a mean of payment”
Meanwhile across the world in Africa, CEO of Twitter Jack Dorsey has said that “Africa will define the future” with regards to cryptocurrency spending and introducing there. His enthusiasm comes as interest in BTC continues to build, especially in Lagos, Nigeria’s most populous city, Dorsey said he is planning to return to Africa in 2020.

Have a great week.

 

 

Past Week Talking Points

  • US Lawmakers want to brand Libra a security- Association disagrees
  • American citizen arrested for educating North Korea on Blockchain and Crypto
  • Blockchain can reduce food fraud by $31 billion within 5 years
  • Coinbase denies report of $150M acquisition of Tagomi brokerage firm
  • “Nothing is above Bitcoin, no CBDC, no stablecoins.”  Blockstream CEO Adam Back
BTC Price: $7,283

Last 7 Days: +1.36%  1month: -21.82%  12months: +85.58%

BTC Technicals:

Over past week, Bitcoin started a decent recovery move on the upside from $6,525 with the BTC price gaining pace above the $7,000 resistance area and even seeing a break above the key $7,400 resistance area.
Finally, the price rallied significantly above the $7,600 level, but struggled to test the $8,000 resistance level. It seems like the price formed a short term top near the $7,885 area and the 100 simple moving average (4-hours). We also noticed that there is a crucial bearish trend line forming with resistance near $7,680 on the 4-hours chart of the BTC/USD pair. Bitcoins price is currently correcting lower below the $7,500 level. On the downside, an immediate support is near the $7,200, If there are more downsides, the price could test the main $7,000 support area in the near term. Therefore, a daily close below the main $7,000 support could start a fresh bearish trend and set the market up for a bear mood for the coming month. Looking at the recent movements, the price is likely to break the $6,500 support in the near term. On the upside, the price is facing a lot of hurdles near the $7,710 and $7,800 levels. However, the price must settle above the $8,000 resistance area to ensure that the bulls have re-gained control and are taking the price further upwards. A close above the the trend line, and the 100 simple moving average (4-hours) will also signify a new trend is coming.

BTC Volume:

25th November: $42,685,231,262  (BTC Price of $7,146)

2nd December: $17,729,976,480  (BTC Price of $7,299)

58% decrease in trading volume in the last 7 days

 

 

Last 7 Days Big Market Movers

ROM Token                 ROM              $0.000185      2069%

Fortem Capital             FCQ              $0.523412       679%

TChain                         TCH              $0.009331       321%

 

 

ETH Price: $148.32

Last 7 Days: +0.60%  1month: -19.18%  12months: +34.58%

Ethereum Technicals:

Last week, Ethereum started a solid strong recovery above the $142 resistance area. Furthermore, ETH price surpassed a major resistance area near the $150 level. This shows there was a break above a major bearish trend line with resistance near $152 on the 4-hours chart of ETH/USD.

By surpassing the $155 resistance area, it gave the traders the momentum to take it further but it struggled to gain significant traction above $158. A swing high was formed near $158 and the price remained well below the 100 simple moving average (4-hours). Ethereum is currently correcting lower below the 23.6% Fib retracement level of the upward move from the $131 swing low to $158 high. The price is currently approaching the broken trend line and the $145 support area. The main support is near the $142 area. It is near the 61.8% Fib retracement level of the upward move from the $131 swing low to $158 high. Therefore, a downside break below the $142 support area could reduce chances of another upward move in the near term and give the bears just enough rope to bring the price much lower. In the current situation, the price is likely to revisit the $134 and $132 support levels. On the upside, the first key resistance level is near the $152 level. The key resistance area is near the $158 and $160 level, which means a clear break above the $160 level and the 100 simple moving average may perhaps push the price back into a positive zone and allow the bulls to put in the Santa Rally I think we all deserve.

 

 

Market Cap. Dominance:

BTC:  66.5%
ETH:  8.1%
XRP:  4.7%

Other ALT-Coins: 20.7%

This newsletter is not intended and should not be construed as an offer, solicitation or recommendation to buy or sell any specific investments  or participate in any investment (or other) strategy.