London’s Role as a Financial Hub is Secure if UK Adopts Cryptocurrencies

Cryptocurrencies are changing the global financial system, and it is expected to grow bigger over the coming years. Governments around the world are now trying to regulate the crypto space and ensure that innovation continues to thrive.

The UK Needs to Adopt Cryptocurrencies

Philip Hammond, a British politician who served as Chancellor of the Exchequer from 2016 to 2019, has pointed out that the UK needs to adopt cryptocurrencies. According to Hammond, digital assets could ease the post-Brexit financial disruption and ensure that London remains a global financial hub.

For decades, London has been the financial hub of Europe. It is home to some of the leading financial companies in the region, including Revolut, Wise and several others. However, the UK is going through a financial disruption following the Brexit saga.

In a recent interview with City A.M., a former member of the Conservative Party said the UK needs to move fast and adopt cryptocurrencies. “I personally think the momentum is now unstoppable. We need to move quickly and effectively to secure London’s position,” he added.

Hammond argued that the UK adopting cryptocurrencies would ensure that London remains a global financial hub as Bitcoin and the altcoins will become increasingly employed on a macroeconomic level.

He argued that ignoring cryptocurrencies and other digital assets is not wise since numerous European nations have begun embracing them. Hammond said the competitors now see cryptocurrencies as an avenue to overtake the UK in the financial space.

The BOE is Not a Crypto Fan

The Bank of England, like most central banks around the world, has shown that they are not a big fan of cryptocurrencies. Last month, BOE governor Andrew Bailey said that the rise of crypto assets was helping illegal activity.

Bailey also cast doubt on stablecoins, stating that he doesn’t believe they can evolve into a form of safe, regulated money. Regardless, cryptocurrencies continue to gain adoption, and their use cases will grow bigger.

Crypto Market Today: Bitcoin and Ether Show Positive Signs, SOL Eyes New ATH

Bitcoin

After testing the $56,000 zone, bitcoin price started a fresh upward move. It climbed above the $56,800 and $57,000 levels. However, the bulls are struggling to clear the $57,300 resistance. The main hurdle is still near $58,000. A daily close above $58,000 could start a fresh increase.

If there is another failure, the price could drop below the $56,000 support. The main breakdown support is near $55,500, below which the price could dive towards $52,000.

Bitcoin

Ether (ETH)

Ether is trading in a positive zone above the key $4,480 support zone. Recently, there was a break above a key bearish trend line with resistance near $4,585 level on the hourly chart. The next key barrier is $4,650, above which the price could revisit the main $4,770 resistance.

If not, there could be a downside correction towards the $4,540 level. The next key support is near $4,480.

Ether

Solana (SOL)

SOL started a fresh increase after it formed a base above the $185 level. There was a major move above the $210 and $220 resistance levels. The bulls even pushed the price above a major bearish trend line with resistance near $220 on the daily chart.

SOL climbed above 50% Fib retracement level of the downward move from the $260 swing high to $180 low. The price settled above the $200 level and the 21 simple moving average.

SOL is now facing resistance near the $240 level. It coincides with the 76.4% Fib retracement level of the downward move from the $260 swing high to $180 low. A close above the $240 and $242 levels may perhaps send the price towards the $260 high or even a new all-time high. If there is a downside correction, the price might find bids near the $225 level.

SOL

ADA, BNB, and DOT price

Cardano (ADA) gained pace above the $1.62 and $1.65 levels. It is now facing resistance near the $1.68 level. The next major resistance is $1.70, above which it could rise towards $1.75. If there is a downside correction, the price might find support near the $1.52 level.

Binance Coin (BNB) is consolidating near the $620 level. If BNB stays above $620, it could rise towards the $632 level. A clear break above $632 could send the price towards the $650 level. Conversely, there is a risk of a move towards the $600 level.

Polkadot (DOT) is trading in a positive zone above the $35.00 level. An immediate resistance is near the $36.50 level. The main resistance is now near $38.00, above which the price could rise towards the $40 level. On the downside, the $33.20 level is a decent support.

A few trending coins are LUNA, MATIC, and XLM. Out of these MATIC is up over 18% and it cleared the key $2.30 resistance zone.

Goldman Sachs Says Bitcoin’s Options Market Could Spur new Institutional Interest

The leading global investment banking, Goldman Sachs, has noted that developing crypto options will be a landmark achievement for the crypto space especially as the sector continues to enjoy an influx of traditional financial investors.

Bitcoin Needs a Developed Options Market

This statement was made by Goldman Sachs’ global head of crypto trading, Andrei Kazantsev, during a CoinDesk-hosted panel discussion where he stated that there is a growing demand among investors for crypto derivative products.

According to him, “We are seeing a lot of demand for more derivative-type hedging. The next big step that we are envisioning is the development of options markets.”

Judging by available data, one cannot but agree with him that demand for a Bitcoin options market is growing exponentially. Per available data from Skew, a crypto analytics site that tracks the derivatives market, the total value of outstanding contracts in Bitcoin options is above $12 billion. To put this in perspective, the figure rarely eclipsed $2 billion throughout last year.

Kazantsev explained further that where “there might be equity funds that have an exposure to a stock that has underlying bitcoin holdings” traders looking to hedge that exposure might be interested in trading futures instead of having to rebalance their portfolios. That is where options trading comes in as it allows them to hedge these kinds of investments for the long term. 

Options trading is often called “derivatives.” Investors tend to use this trading option to protect themselves against any existing risk or further use this trading tool to have more exposure to the market.

Bitcoin’s Performance in the Last 24 Hours

According to available data from CoinMarketCap, Bitcoin’s price has increased by around 0.3% within the last 24 hours allowing it to trade as high as $57,349 while its lowest price within the same period is at $56,102. The trading volume of the flagship digital asset has dropped by close to 10% within the last 24 hours too.  

Since touching a new ATH in early November, the value of the digital asset has plummeted back to the $50k levels, allowing sceptics to point at its inherent volatile nature. As of press time, it is exchanging hands for $56,944.

MercadoLibre Launches new Crypto Services in Brazil

Crypto is being increasingly embraced as a viable payment option by a number of institutions around the world with the latest being MercadoLibre, a giant e-commerce platform, who recently announced that its users can now purchase products on its platform using BTC and other digital assets.

Brazilians Can Now Easily Purchase Crypto 

According to a press statement issued as regards the announcement, it was revealed that MercadoPago, the fintech arm of the company, has already enabled support for crypto payments for its users in Brazil. It continued that users would now be able to easily buy, sell and hold Bitcoin, Ethereum and the Paxos-issued US dollar-backed stablecoin USDP.

To achieve this, the e-commerce site partnered with Paxos, the popular blockchain infrastructure platform that is being used by PayPal too. It is widely believed that their partnership could easily “accelerate the democratization of financial services in Latin America.”

The new development means Brazilians can now easily hedge against inflation by holding US Dollars via the MercadoPago app by purchasing the Paxos-backed stablecoin USDP. 

MercadoLibre and MercadoPago represents the single largest enablement of stablecoins within a non-crypto wallet to date. Any Brazilian user looking to hold US Dollars can now do so seamlessly within MercadoPago by getting USDP.

Earlier in the year, MercadoLibre announced the purchase of BTC worth around $7.8 million.

Institutions Democratizing Access to Crypto 

In previous years, access to Bitcoin and other crypto assets was elusive to many especially as the larger financial system had mischaracterized the space. But it all changed last year when PayPal, one of the leading financial tech companies in the world, opened up its platform to support the buying, selling and holding of crypto.

This single action opened up access to crypto to millions of individuals who, hitherto, were not exposed to the industry as the site also revealed that its user can also convert their digital assets into fiat and use it to buy goods from its merchants.

Another fintech firm worthy of mention in democratizing access to crypto is Square’s Cash App which is a peer-to-peer payment platform that allows users to buy and sell the flagship digital asset.

Bitcoin Price Prediction – A Move back Through to $57,000 Levels Would Bring $58,500 back into Play

Daily Video Tech Analysis of Bitcoin, Ethereum, Litecoin, and Ripple’s XRP

Bitcoin’s Morning Session

At the time of writing, Bitcoin, was up by 0.62% to $56,866.

A mixed start to the day saw Bitcoin fall to an early morning low $56,101 before making a move. Steering clear of the first major support level at $55,776, however, Bitcoin rallied to a late morning high $57,332.

While steering clear of the day’s first major support level at $55,776, Bitcoin briefly broke through the first major resistance level at $57,324 before falling back to sub-$57,000 levels.

BTCUSD 031221 Hourly Chart

For the Afternoon Ahead

Bitcoin would need to avoid a fall back through the $56,583 pivot to bring the first major resistance level at $57,324 back into play.

Support from the broader market would be needed for Bitcoin to break back through to $57,000 levels. Barring an extended rally, the first major resistance level and the morning high $57,390 should limit the upside.

In the event of a broad-based crypto rally, Bitcoin could test resistance at $58,500. The second major resistance level sits at $58,131

A fall back through the $56,583 pivot would bring the first major support level at $55,776 back into play. Barring another extended sell-off through the afternoon, however, Bitcoin should steer clear of sub-$55,000 levels. The second major support level at $55,035 should limit the downside.

Looking beyond the major support and resistance levels, we saw the 50 EMA pull back from the 200 EMA. We also saw the 50 converge on the 100 EMA, pointing to an imminent bearish cross.

Through the afternoon, avoiding a bearish cross of the 50 through the 100 would support a breakout and a run at $58,000 levels.

For the bulls, avoiding a fall back through the day’s pivot and a return to $58,500 levels would be key to avoid another sell-off.

Ethereum Lacks Momentum Ahead Of The Weekend

Ethereum Stabilizes After Recent Pullback

Ethereum is stuck near the support level at $4,535 while Bitcoin continues its attempts to settle below the support at the $56,000 level.

The world’s leading cryptocurrency has recently made another attempt to get to the test of the support at $56,000. Bitcoin remains in the range between the support at $56,000 and the resistance at $57,700, but it is slowly sliding towards the low end of this range. In case Bitcoin declines below the support at $56,000, selling pressure will likely intensify.

Other cryptocurrencies show mixed dynamics today. Solana pulled back towards the $230 level while XRP found support near $0.96 and rebounded towards the $0.98 level. Shiba Inu managed to settle below the 50 EMA at $0.00004050 and is moving towards the support level at $0.000040 while Dogecoin is trying to get above the $0.21 level.

Technical Analysis

ethereum december 3 2021

Ethereum has recently made another attempt to settle below the support level at $4,535 but failed to develop sufficient downside momentum. Currently, it is trying to develop upside momentum. RSI is in the moderate territory, and there is plenty of room to develop upside momentum in case the right catalysts emerge.

In case Ethereum manages to stay above the support at $4,535, it will move towards the resistance level at $4,650. A move above this level will push Ethereum towards the next resistance which is located at $4,770. If Ethereum gets above $4,770, it will head towards the resistance at $4,865.

On the support side, Ethereum needs to get below the support at $4,535 to have a chance to develop downside momentum in the near term. The next support level for Ethereum is located at the 20 EMA at $4,390.

In case Ethereum manages to settle below the 20 EMA, it will head towards the next support level at $4,200. A successful test of the support at $4,200 will open the way to the test of the next support which is located at the 50 EMA at $4,100.

For a look at all of today’s economic events, check out our economic calendar.

Grayscale Writes SEC, Says it is Breaking the law

Early this year, one of the major struggles the crypto community had to deal with was the reluctance of the United States Securities and Exchange Commission (SEC) to approve a crypto-related exchange-traded fund (ETF).

With the SEC now finally approving a number of Bitcoin futures ETFs like that of ProShares and VanEck, the focus has shifted as the community now wants the financial regulator to approve one of the numerous Bitcoin spot ETF applications before it.

The most recent effort from the community on this front is a letter written by Grayscale, the leading digital asset management company, where it stated that the Gary Gensler-led commission could be in violation of the Administrative Procedure Act (APA).

Grayscale Says the SEC Might be Breaking the law 

In the letter issued through its attorney early this week, the asset manager claimed that the SEC’s preference for a Bitcoin futures ETF over that of a BTC spot ETF is arbitrary and discriminatory in nature.

The lawyers argued that the SEC has no basis for its current position where it is maintaining that “investing in the derivatives market for an asset is acceptable for investors while investing in the asset itself is not.”

According to a series of tweets published by Craig Salm, a top official at Grayscale, the firm might not have had a position against the SEC if it had not approved a Bitcoin futures ETF, however, since it has granted an approval for an ETF, then the law “requires the SEC to treat like situations alike absent a reasonable basis for different treatment. This means the SEC must treat similarly situated investment products similarly.”

What the law says

Per Ishan Pandey, an associate at KARM Legal Consultants, in his interpretation of the subject matter, “the courts may compel SEC actions under Section 706 (1) of APA as unlawfully withheld or unreasonably delayed. Under this section, the court can find the actions of the SEC unlawful and set aside SEC actions, findings and conclusions.”

He continued that the commission might find it difficult to build its case against Grayscale because its “current reasons for rejecting such applications are based on subjective opinions and not based on the standing of laws.”

This position is also shared by popular crypto lawyer Jake Chervinsky who in a tweet said that “now that bitcoin futures ETFs are live, the SEC has no valid justification for denying @Grayscale’s spot ETF application. The Administrative Procedures Act demands approval. It’s time.”

SEC’s Position on Bitcoin ETFs Approval

Before the ascension of Gary Gensler as the chairman of the SEC, the commission had always rejected all crypto-related ETFs applications before it.

However, since he took over office, the chairman has hinted that the commission could approve a futures-backed ETF rather than the one which would grant direct exposure to the digital asset.

According to the SEC, its reluctance to approve a BTC spot ETF is tied to its effort to better protect investors from the volatile nature of the flagship digital asset.

It should be noted that the commission has approved a number of Bitcoin futures ETFs like that of ProShares, VanEck and Valkyrie. As recent as this week, the regulator still refused to approve a spot application from WisdomTree.

Asset Manager Fidelity to Launch Physical Spot Bitcoin ETF in Canada

The United States Securities and Exchange Commission (SEC) has rejected numerous Bitcoin ETF applications in the past. However, that hasn’t stopped asset managers and investment firms from applying again.

More Asset Managers are Entering the Crypto Space

Fidelity, the fourth-largest asset manager in the world with more than $4 trillion in assets under management, has applied to launch a physical spot Bitcoin ETF in Canada. The ETF will track Bitcoin’s spot price, giving investors exposure to the leading cryptocurrency.

According to the Financial Times, the Fidelity Advantage Bitcoin ETF (FBTC) is designed to invest in “physical” spot bitcoin. This latest development comes just a few weeks after the US SEC rejected VanEck’s Bitcoin ETF proposal.

Todd Rosenbluth, head of ETF and mutual fund research at CFRA Research, stated that “It’s significant because the top-tier asset managers tend to be fast followers,” said Todd Rosenbluth, head of ETF and mutual fund research at CFRA Research. “They tend to take more of a wait-and-see approach towards investment trends, piggybacking on developments that have often been created by smaller, more nimble asset managers.”

The US is Still Behind on spot Bitcoin ETF

Fidelity has applied to launch a spot Bitcoin ETF in the United States, but the SEC is yet to approve the application. The US SEC has rejected numerous spot Bitcoin ETF proposals in the past, most recently the VanEck application.

According to the SEC, the cryptocurrency market is not ready for a spot Bitcoin ETF at the moment. The SEC had mentioned on numerous occasions that it still has concerns regarding the cryptocurrency market, especially in terms of price manipulation.

The regulatory agency had approved three Bitcoin futures ETFs. These funds track Bitcoin futures instead of the cryptocurrency’s spot price. The Bitcoin futures ETFs in the United States are; ProShares Bitcoin Strategy ETF (BITO), Valkyrie Bitcoin Strategy ETF (BTF) and VanEck Bitcoin Strategy ETF (XBTF).

Despite its rejection, market analysts and asset managers believe it is a matter of time before the SEC approves a spot Bitcoin ETF.

The Crypto Daily – Movers and Shakers – December 3rd, 2021

Daily Tech Analysis of Bitcoin, Ethereum, Litecoin, and Ripple’s XRP

Bitcoin, BTC to USD, fell by 1.26% on Thursday. Reversing a 0.44% gain from Wednesday, Bitcoin ended the day at $56,517.

A mixed morning saw Bitcoin rise to an early morning intraday high $57,390 before hitting reverse. Falling short of the first major resistance level at $58,695, Bitcoin slid to an early morning intraday low $55,842.

Bitcoin fell through the first major support level at $56,145 before briefly revising $57,300 levels. A bearish end to the day, however, saw Bitcoin fall back to sub-$57,000 and into the red.

The near-term bullish trend remained intact, in spite of the latest pullback to sub-$54,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $28,814 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Thursday.

Cardano’s ADA jumped by 11.18% to lead the way, with Bitcoin Cash SV (+0.47%) also bucking the trend on the day.

It was a bearish day for the rest of the majors, however.

Crypto.com Coin slid by 6.52% to lead the way down.

Binance Coin (-1.21%), Chainlink (-3.16%), Ethereum (-1.58%), Litecoin (-2.56%), Polkadot (-1.57%), and Ripple’s XRP (-1.73%) also saw red.

In the current week, the crypto total market fell to a Tuesday low $2,490bn before rising to a Wednesday high $2,712bn. At the time of writing, the total market cap stood at $2,572bn.

Bitcoin’s dominance rose to a Monday high 43.01% before falling to a Thursday low 41.13%. At the time of writing, Bitcoin’s dominance stood at 41.59%.

This Morning

At the time of writing, Bitcoin was up by 0.18% to $56,620. A mixed start to the day saw Bitcoin fall to an early morning low $56,466 before rising to a high $56,620.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was a mixed start to the day.

At the time of writing, Binance Coin (-0.03%), Cardano’s ADA (-0.52%), Crypto.com Coin (-0.52%), and Ripple’s XRP (-0.18%) saw red early on.

It was a bullish start for the rest of the majors, however.

Chainlink was up by 0.41%, at the time of writing, to lead the way.

BTCUSD 031221 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to avoid a fall back through the $56,583 pivot to bring the first major resistance level at $57,324 into play. Support from the broader market would be needed, however, for Bitcoin to break back through to $57,000 levels.

Barring an extended crypto rally, the first major resistance level and Thursday’s high $57,390 would likely cap the upside.

In the event of an extended rally, Bitcoin could test resistance at $58,500 levels before easing back. The second major resistance level sits at $58,131.

A fall back through the $56,583 pivot would bring the first major support level at $55,776 into play. Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$55,000 levels. The second major support level at $55,035 should limit the downside.

BadgerDAO is Latest DeFi Project to Lose Millions to Hackers

With the DeFi space still smarting from the recent hack of MonoX, another project in the space has suffered another attack which has led to the loss of over $100 million to hackers.

Attacker targeted the platform’s User Interface

BadgerDAO, a decentralized autonomous organization, earlier today confirmed that it suffered a major hack which led to the loss of hundreds of millions by its users. According to the DAO, the hacker was able to drain funds from the wallets of its users by capitalizing on a malicious contract on the front end of the platform’s user interface.

Per available information, the attack began on Wednesday evening when a number of users began receiving requests to grant permissions to a contract on the platform. Unknowingly to them, this request was emanating from the hacker who later used it to gain unlawful access to their funds.

In its statement confirming the attack, the BadgerDAO team revealed that its users had reported unauthorized withdrawals of their funds on the protocol. The DAO continued that it had temporarily stopped all smart contracts from processing withdrawals as it investigates the origin of this attack.

BadgerDAO did not release any information on the extent of the loss or the number of affected users. However, a post mortem from PeckShield revealed the lists of assets that were affected and the possible amount that was siphoned by the hacker.

According to data provided by the blockchain security and data analytics company, the platform lost around $120 million to the malicious player with one user losing as much as 900 BTCs which translates to roughly $50 million.

Reactions Trail BadgerDAO loss

A number of users have begun reacting to the loss of funds with some reacting angrily to the team’s decision to halt withdrawal.

One user of the platform, @Trader_recluse revealed that he had over $2 million on the platform which is his entire life savings but he can’t gain access to it now because the project has placed a hold on withdrawals. Another user said that he had his son’s university tuition saved on the platform but that is also now lost. On the other hand, one user offered to help the BadgerDAO team improve its security.

As of press time, BADGER’s price is down by more than 20% within the last 24 hours.

Crypto Market Today: Bitcoin and Ether Struggle, MATIC Aims Additional Gains

Bitcoin price is still struggling below $58,000, ether price trimmed gains and traded 5% lower, and MATIC could aim more gains above the $2.00 level.

Bitcoin

After facing hurdles near $58,000, bitcoin price started another decline. BTC traded below the $57,000 and $56,000 levels. It traded close to $55,500 before the bulls appeared. The price is now correcting losses and trading above $56,000. The first hurdle for the bulls could be $57,000, but the main hurdle is still near $58,000. A proper H4 close above $58,000 is must for a move towards the $60,000 level.

If the bulls fail, the price could resume decline below $55,500. The next key support is near $55,000, below which there is a risk of a move towards the $53,500 level.

Ether (ETH)

Ether failed to stay in the bullish zone after it failed to clear the $4,800 level. There was a bearish reaction below the $4,650 and $4,600 levels. Ether price even moved below $4,500 briefly before recovering higher. It is now facing resistance near the $4,600 level. The next key barrier is $4,720, above which the price could revisit the $4,800 resistance zone.

If there is another decline, the price could decline towards the $4,500 level. The next key support is near $4,420. A downside break below $4,420 may perhaps push the price to $4,200.

Polygon (MATIC)

MATIC started a fresh increase after it formed a base above the $1.60 level. There was a strong upward move above the $1.80 resistance. During the increase, there was a break above a major bearish trend line with resistance near $1.85 on the 4-hours chart.

The price even spiked above the $2.00 resistance level. It tested the $2.20 resistance zone and is currently correcting lower. It traded below the $2.10 level, and even broke the 23.6% Fib retracement level of the recent increase from the $1.50 swing low to $2.20 high.

Polygon (MATIC)

However, the price is still above the $2.00 level and the 21 simple moving average (H4). An initial support on the downside is near the $2.00 zone. The first major support sits near the $1.85 level or the 21 simple moving average (H4).

The 50% Fib retracement level of the recent increase from the $1.50 swing low to $2.20 high is also near the $1.85 level. On the upside, MATIC is now facing resistance near the $2.05 level. A close above the $2.05 and $2.10 levels may perhaps send the price towards the $2.20 high. Any more gains could set the tone for a move towards the $2.50 level or even a new all-time high.

ADA, BNB, and DOT price

Cardano (ADA) started a decent increase after it cleared the $1.62 resistance. It even broke the $1.70 level and is trading in a positive zone. The next major resistance above is $1.72, above which it could revisit $1.80. If there is a downside correction, the price might find support near the $1.665 and $1.650 levels.

Binance Coin (BNB) made an attempt to clear the $650 resistance but failed. There was a downside correction below the $635 level. It is now consolidating near the USD 625 level. An immediate resistance is $635. The main barrier is now near $650, above which the bulls could aim a test of $700. If not, the price could drop towards the $600 support.

Polkadot (DOT) climbed above the $38.00 resistance before correcting gains. It is now stuck near the $35.00 level. If there is a downside break, the price could test $32.00. Conversely, it could aim a move towards the $40.00 level.

A few trending coins are LUNA, OKB, and UNI. Out of these LUNA is up over 12% and it seems to aim a move towards the $70.00 level in the near term.

Bitcoin Price Prediction – Bears Take Control as Bitcoin Fails to Return to $58,000 Levels

Daily Video Tech Analysis of Bitcoin, Ethereum, Litecoin, and Ripple’s XRP

Bitcoin’s Morning Session

At the time of writing, Bitcoin, was down by 1.88% to $56,162.

A mixed start to the day saw Bitcoin rise to an early morning high $57,390 before sliding to a late morning low $55,842.

While falling short of the first major resistance level at $58,695, Bitcoin fell through the first major support level at $56,145 in the early hours.

Avoiding sub-$55,000 levels, however, Bitcoin found support to revisit $57,200 levels before falling back into the red.

BTCUSD 021221 Hourly Chart

For the Afternoon Ahead

Bitcoin would need to move through the $57,600 pivot to bring the first major resistance level at $58,695 into play.

Support from the broader market would be needed for Bitcoin to break back through to $58,500 levels. Barring an extended rally, the first major resistance level should limit the upside.

In the event of a broad-based crypto rally, Bitcoin could test the second major resistance level at $60,150. Bitcoin would need plenty of support, however, to breakout from Wednesday’s high $59,055.

Failure to move through the $57,600 pivot would bring the first major support level at $56,145 back into play. Barring another extended sell-off through the afternoon, however, Bitcoin should steer clear of sub-$55,000 levels. The second major support level at $55,050 should limit the downside.

Looking beyond the major support and resistance levels, we saw the 50 EMA narrow on the 200 EMA. The 100 EMA pulled away from the 200, however, adding further downward pressure.

Through the afternoon, a bearish cross of the 50 through the 200 and the 100 EMAs would bring sub-$56,000 support levels into play.

For the bulls, a move through the day’s pivot and a return to $58,500 levels would be key to avoid another sell-off.

 

MATIC Rallies by Over 10% Following Polygon Listing on 21Shares

The cryptocurrency market is warming up to exchange-traded funds and products as institutional investors desire more exposure to the space. With the number of exchange-backed products rising, the number of institutional investors entering the market is also increasing.

21Shares Adds Polygon to its ETP List

21Shares, one of the leading exchange-traded product (ETP) issuers in the cryptocurrency space, has announced the listing of a product linked to Polygon. The Polygon ETP is now live on Euronext exchanges in Paris and Amsterdam, the firm added.

Polygon is one of the leading cryptocurrency projects in the world. It is a layer-2 project designed to speed up transactions for the primary blockchains. This implies that Polygon is a project that provides scalability to the major blockchains in the ecosystem.

The listing of the Polygon ETP on Euronext exchanges comes after it was unveiled on the SIX Swiss Exchange in November. The addition of the Polygon ETP to the Euronext exchange saw the MATIC token surge by more than 11% over the past 24 hours.

MATIC’s Price Could Soar Higher

MATIC is currently one of the top 20 cryptocurrencies by market cap. However, MATIC didn’t perform excellently last month as the broader cryptocurrency market recorded losses. MATIC began November trading at $1.9 per coin and raced to the $2.03 level at a time when Bitcoin and Ether set new all-time highs.

However, MATIC’s value dipped below $1.50 as the cryptocurrency market lost billions of dollars in the middle of November. The coin’s price began to recover towards the end of the month as the financial markets rallied again after the Omicron fears.

MATIC’s indicators show a strong positive trend. Source: FXEMPIRE

MATIC is one of the bullish coins amongst the top 20 cryptocurrencies at the moment. Its MACD line crossed the neutral zone a few hours ago, while its RSI currently stands at 66. These indicators show that MATIC is currently bullish and could rally higher over the coming hours and days. At press time, MATIC is trading at $2.14 per coin, which is way above its 100-day simple moving average of $1.53.

Polygon’s native token could record further gains in the coming days and weeks. If it maintains the current momentum, then MATIC could top the $2.5 resistance level before the end of the week. However, it might need the support of the broader market if it wants to breach the $3.0 psychological level.

Ethereum Tries To Rebound From Support At $4,535

Ethereum Pulled Back From Recent Highs

Ethereum has recently tested the support at $4,535 as crypto markets remained under some pressure.

Ethereum has recently made an attempt to get to the test of the all-time high levels, but renewed fears about the spread of the new variant of coronavirus have put material pressure on riskier assets.

Cryptocurrencies have been sensitive to global market sentiment in recent weeks, so the continuation of the sell-off in equity markets hurt crypto markets.

Currently, leading cryptocurrencies are moving lower, although losses are limited. Bitcoin has recently made another attempt to settle below the support at $56,000. If Bitcoin gets below this level, it may gain strong downside momentum and quickly get to the test of the next support at $53,600 which will be bearish for crypto markets.

Solana made an attempt to settle above $236 but lost momentum and declined below the $225 level. XRP managed to settle below $1.00 and tried to get below $0.95. Meme coins are also under pressure. Dogecoin is testing the support level at $0.2050 while Shiba Inu is trying to settle back below the 50 EMA at $0.00004260.

Technical Analysis

ethereum december 2 2021

Ethereum tested the support level at $4,535, but this test yielded no results. The upside trend stays strong, and Ethereum will have a good chance to get to the test of all-time high levels in case global market sentiment improves.

The nearest resistance level for Ethereum is located at $4,650. If Ethereum gets above this level, it will move towards the next resistance at $4,770. A successful test of this level will push Ethereum towards the resistance at $4,865.

On the support side, a move below $4,535 will open the way to the test of the support level which is located at the 20 EMA at $4,375. In case Ethereum declines below this level, it will head towards the next support at $4,200. A move below $4,200 will push Ethereum towards the 50 EMA at $4,080.

For a look at all of today’s economic events, check out our economic calendar.

Supercycle in Bitcoin?

A clear cycle has emerged, possibly not on the scale of a supercycle but the current cycle at the very least. Luckily with spot market data going back as far as 2013, we can outline more waves in the cycle and even the current supercycle.

chart 1 dec 1

What the spot market data reveals is that we are in the third wave of a supercycle, and wave theory points to a conclusion of this third wave that prices that are in line with our recent estimates.

What this long-term viewpoint reveals is that the cycles illustrated on our BTC charts represent the second wave of the supercycle as well as the third wave which we believe has yet to complete. By utilizing Fibonacci extensions of the first wave starting from the beginning of the third wave, the area in between the 3.618% and 4.236% Fibonacci extensions ($72,377 – $84,360) are right in line with other technical indicators that point to the same price range that could be reached in this current rally, likely by the end of the year.

dec n1 2

By taking the time to step back and remove all the noise from the day-to-day price action, a trader can often glimpse a much clearer picture. The fact that the picture draws the same conclusion as our erratic knee-jerk short-term depiction reinforces both the techniques used in the forecasts they alluded to.

This makes me more confident that our forecast that has not changed over the last few weeks is still the logical path ahead. In layman’s terms, Christmas will most likely gift us a new all-time high between $75,000 and $80,000.

dec 1 3

 

The Crypto Daily – Movers and Shakers – December 2nd, 2021

Daily Video Tech Analysis of Bitcoin, Ethereum, Litecoin, and Ripple’s XRP

Bitcoin, BTC to USD, rose by 0.44% on Wednesday. Partially reversing a 1.51% gain from Tuesday, Bitcoin ended the day at $57,249.

After a mixed morning, Bitcoin rose to a late afternoon intraday high $59,055 before hitting reverse. Bitcoin broke through the first major resistance level at $58,794 before sliding to a late intraday low $56,505.

Steering clear of the first major support level at $55,519, however, Bitcoin moved back through to $57,200 levels and into the green.

The near-term bullish trend remained intact, in spite of the latest pullback to sub-$54,000 levels. For the bears, Bitcoin would need a sustained fall through the 62% FIB of $28,814 to form a near-term bearish trend.

The Rest of the Pack

Across the rest of the majors, it was a mixed day on Monday.

Polkadot slid by 3.53% to lead the way down.

Bitcoin Cash SV (-1.17%), Cardano’s ADA (-0.45), Ethereum (-1.07%) and Ripple’s XRP (-0.66%) also saw red.

Crypto.com Coin rallied by 7.78% to lead the way, however, with Binance Coin (+0.85%), Chainlink (+0.07%), and Litecoin (+0.43%) also finding support.

In the current week, the crypto total market fell to a Tuesday low $2,490bn before rising to a Wednesday high $2,712bn. At the time of writing, the total market cap stood at $2,578bn.

Bitcoin’s dominance rose to a Monday high 43.01% before falling to a Wednesday low 41.17%. At the time of writing, Bitcoin’s dominance stood at 41.75%.

This Morning

At the time of writing, Bitcoin was down by 0.48% to $56,965. A bearish start to the day saw Bitcoin fall from an early morning high $57,239 to a low $56,941.

Bitcoin left the major support and resistance levels untested early on.

Elsewhere, it was also a bearish start to the day.

At the time of writing, Crypto.com Coin was down by 5.31% to lead the way down.

BTCUSD 021221 Hourly Chart

For the Bitcoin Day Ahead

Bitcoin would need to move through the $57,600 pivot to bring the first major resistance level at $58,695 into play. Support from the broader market would be needed, however, for Bitcoin to break out from $58,500 levels.

Barring an extended crypto rally, the first major resistance level and Wednesday’s high $59,055 would likely cap the upside.

In the event of an extended rally, Bitcoin could test resistance at $61,000 levels before easing back. The second major resistance level sits at $60,150.

Failure to move through the $57,600 pivot would bring the first major support level at $56,145 into play. Barring another extended sell-off on the day, Bitcoin should steer clear of sub-$55,000 levels. The second major support level at $55,050 should limit the downside.

China Proposes Supervision for NFT and Metaverse

China’s crypto crackdown is about to take a new dimension as the Asian country’s central bank, the People’s Bank of China (PBoC), has hinted that it wants to include the burgeoning crypto niche NFTs and the fast-growing Metaverse under the lists of assets it wants to start monitoring.

Chinese Official Wants NFTs to be Monitored

During the national financial security summit, Gou Wenjun, the director of the Anti-Money Laundering (AML) unit at the People’s Bank of China, highlighted the risks associated with leaving the sectors in question unregulated. 

Wenjun stated that individuals, usually, use these evolving innovations for different purposes. According to him, while some are interested in using these technologies to rake in profits, others might be interested in using them for illegal activities.

As such, he believes it would be risky to leave these fast-growing blockchain innovations free of government supervision, because they could end up being used as a money-laundering tool by criminals.

The government official went on to propose that the agency be allowed to “clarify the division of supervisory responsibilities, improve the transparency of virtual assets, and explore the use of supervisory sandboxes to study and judge the essence and nature of virtual assets.”

He also proposed that China strengthen its KYC policy involving digital assets transactions so that service providers would authenticate the names of participants in a transaction in order to better identify suspicious transactions.

He further added that new technologies should be improved upon to allow authorities to be able to trace a crypto transaction so that those transacting with suspicious addresses can also be identified.

China’s History With Crypto

One of the country’s that has repeatedly and publicly maintained its anti-crypto stance is China, who as recently as this year ordered a nationwide ban on all crypto-related transactions while threatening defaulters with sanctions.

Not only that, authorities in the country also began a crackdown on crypto mining activities citing the negative environmental impact this has on the planet as to why it would no longer welcome such activities in its jurisdiction again. 

This unfriendly policy has led many crypto-related firms operating in the country to either close shops or move their businesses outside its shores.

Interestingly, China’s crypto ban has had a positive effect on the industry as it has led to the decentralization of mining activities away from one spot. Today, countries in North America, Kazakhstan and, Russia now contribute a large quota towards the ascent of Bitcoin mining hashrate to its previous heights.

Also, despite the ban by China, the crypto industry’s market cap recently touched the $3 trillion market cap with assets like Bitcoin, Ethereum and, others touching new ATH —a sign that the industry no longer depends on China like it used to.

What This Means for Chinese NFT Enthusiasts

China has undoubtedly been able to cement itself as a hub of technological innovation and development with its citizens mostly leading the pack when it comes to tech adoption.

This is no different in the case of the burgeoning NFT space where Google trends data has revealed that the Asian country is one of the top three countries in the world to have made the most searches for the term “NFT.”

With Chinese authorities hinting about surveilling the space, it simply means that citizens of the countries could have a limited access to the potential of a $1 trillion space, according to data from Grayscale.

Judging by the past history of the government, it also means that a total crackdown of the space is not entirely off the table, which could mean that the Asian country would be barring its citizens from a multimillion-dollar opportunity.

Crypto Market Today: Bitcoin Struggles, Ether Eyes Fresh High, SOL Outperforms

Bitcoin price is facing a major hurdle near $58,500, while ether price could aim a new all-time high. SOL gained momentum and it might extend gains towards $250.

Bitcoin

In the past few sessions, bitcoin price faced a strong selling interest near the $58,000 and $58,500 levels. It is slowly moving lower, but there are many important supports, starting with $56,000. The main breakdown support is near $55,500. A daily close below $55,500 may perhaps start a bearish wave towards the $52,000 level.

If there is another attempt to clear $58,000, there are chances of a move towards $60,000. A daily close above $60,000 could start a steady increase. In the stated scenario, the price could rise towards the $62,500level.

Ether (ETH)

Ether outperformed bitcoin and rallied above the $4,650 resistance level. The bulls are now struggling near the $4,800 level. A convincing move above the $4,800 level could open the doors for a new all-time high. The next key barrier is $5,000. Any more gains may possibly lead the price to $5,500.

If not, there could be a downside correction towards the $4,620 level. The next key support is near $4,550. A downside break below $4,500 may perhaps start a substantial correction.

Solana (SOL)

SOL started a fresh increase after it formed a base above the $180 level. There was a strong upward move above the $200 resistance. During the increase, the price cleared the 50% Fib retracement level of the downward move from the $235 swing high to $181 low.

Besides, there was a break above a major bearish trend line with resistance near $212 on the 4-hours chart. The price settled above the $210 level and the 21 simple moving average (H4).

Solana (SOL) Price Chart

SOL is now facing resistance near the $222 level. It coincides with the 76.4% Fib retracement level of the downward move from the $235 swing high to $181 low. A close above the $222 and $225 levels may perhaps send the price towards the $235 high. The next key resistance is near the $248 and $250 levels.

If there is a downside correction, the price might find bids near the $208 level and the 21 simple moving average (H4).

ADA, BNB, and DOT price

Cardano (ADA) showing positive signs above the $1.55 level. However, the bears are defending the $1.60 level. A proper H4 close above $1.60 might start a decent increase. The next major resistance above $1.60 is $1.70. If there is a downside correction, the price might find support near the $1.52 and $1.50 levels.

Binance Coin (BNB) is gaining pace above the $625 level. It is up over 4% and trading above the $640 level. An immediate resistance is $650. The main target for the bulls could be $700 in the next few sessions. If not, the price could drop towards the $620 support.

Polkadot (DOT) is slowly moving higher towards the $40 level. If the bulls push the price above $40, there could be a slow and steady wave towards the $50 level. On the downside, the $33.50 level is a decent support.

A few trending coins are LUNA, CRO, and UNI. Out of these UNI is up over 8% and it might accelerate higher towards the $23.50 level.

Bitcoin Price Prediction – A Break Through to $59,500 Needed to Bring $60,000 back into Play

Daily Video Tech Analysis of Bitcoin, Ethereum, Litecoin, and Ripple’s XRP

Bitcoin’s Morning Session

At the time of writing, Bitcoin, was up by 0.20% to $57,078.

A mixed start to the day saw Bitcoin rise to an early morning high $57,879 before sliding to a late morning low $56,712.

Bitcoin fell short of the first major resistance level at $58,794 while also steering clear of the first major support level at $55,519 through the morning.

The pullback did see Bitcoin fall back through the day’s $57,346 pivot, however.

ETHUSD 011221 Hourly Chart

For the Afternoon Ahead

Bitcoin would need to move back through the $57,346 pivot to bring the first major resistance level at $58,794 into play.

Support from the broader market would be needed for Bitcoin to break back through to $58,000 levels.

Barring an extended rally, the first major resistance level should limit the upside.

In the event of a broad-based crypto rally, Bitcoin could test resistance at $63,000 before any pullback. The second major resistance level sits at $60,621.

Failure to move back through the $57,346 pivot would bring the first major support level at $55,519 back into play.

Barring another extended sell-off through the afternoon, however, Bitcoin should steer clear of sub-$55,000 levels. The second major support level sits at $54,071.

Looking beyond the major support and resistance levels, we saw the 50 EMA flatten on the 200 EMA. The 100 EMA narrowed marginally on the 200, however, providing modest support.

A narrowing of the 100 on the 200 and bullish cross would support a return to $60,000 levels.

For the bulls, a breakout from $58,500 would be key, however, to avoid another sell-off, however.

Bitcoin Supports For Potential Longs

While the broader trend is still bullish, the recent structure coming off the 69K high is bearish. In these situations I prefer even more confirmation before justifying any new risk. Here is what I’m looking for going into next week.

Setup 1:

the higher low formation. IF Bitcoin finds support somewhere between the 54 and 56K area, it would be in line to establish a higher low. Usually these formations lead to higher highs which would put price back into the low 60Ks at least. In order to confirm, a bullish reversal candle will have to close in the area, followed by a break of the high. Risk and reward can then be quantified and a new position justified.

Setup 2:

The double bottom formation. IF Bitcoin tests the 53K low AGAIN followed by a bullish reversal candle. As in the previous setup, this can be in the form of a inside bar, pin bar, outside bar, etc. This location offers a high probability of reversal AND an attractive reward/risk.

Keep in mind, that the corrective structure that is in play can also continue to break supports. IF 53,500 is cleared, the 50 to 48K area is likely to follow. While this would be within reason for small time frame bearish strategies, going for a short on the larger time frame is very high risk (you are shorting into high probability bullish reversal areas).

Novice traders usually get too caught up on smaller time frame information and miss the broader context. Having a clear set of rules that facilitate more of a market aligned view rather than an ego aligned view helps to avoid these common herd mentality mistakes.

If you would like to learn more about the long only swing trade strategy that I utilize for Bitcoin, please visit: https://greenbridgeinvesting.com/pricing