Overview
- Crypto Market Insight: Don’t Fall for FUD
- Market Update
- Major Crypto News
- Notable Events
- NEWBIES’ lesson of the day: Controlling the fear during selloffs
Crypto Market Insight: Don’t fall for FUD
It’s a sea of red on the charts but hope remains in the form of strong buying at resistance levels. The Bitcoin bull market trendline has been broken with today’s candles close at 53k. This event will mark the first close below this important trendline. Price is coming down to test a strong resistance level between 52.5k and 54K indicated on the chart below.
There are three possibilities that may occur here.
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Over the weekend price may rebound quickly enough to jump back into trend.
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Price could begin testing this resistance various times over the next week/s, setting bitcoin in a range.
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Prices break below the resistance to go test the next level at 50k.
Today’s volume isn’t indicating a lot of strength which will favor a rebound off the resistance. The pin-bar candle noted on the 4-hour chart is reaffirming the strength of the resistance.
Funding rates are telling us that a cascade of selloffs will not occur due to liquidations in the derivatives. Volatility is increasing with this move and the consolidation we hoped for didn’t occur today. The down move is due to current macro climate. (Omnicron and FED-tapering news)
Stock Market
Volume continues to be strong in stock market sell-off and yesterday’s rebound was short-lived. The topic of decoupling from stocks will have to be saved for another day. This market is dragging crypto with it. Stock market funds are moving into bonds out of fear. The VIX (Volatility Index) and fear gauge hit a new high of 35.32. Monday will tell us a lot about if this sell-off will continue in stocks.
Wrap-up
Macroeconomic FUD is brining prices down, which is an emotional rection of the market. The current sentiment can dissipate quickly, and this would turn things around. There is little evidence of a major sell-off in crypto, so it’s recommended that you keep on hodling, watch the weekend prices and hope FUD dies down on Monday.
Crypto Market Update
· Bitcoin (BTC) is down 5.71%
· Ethereum (ETH) is down -7.03% as the bears take back a majority of the recent buying from this week.
· Polygon (MATIC) continues to show strength. It is rumored that the Polygon team will make a large announcement on at the ZK Rollup conference on Dec 4. Vitalik Buterin is rumored to be attending the event.
· Chainlink (LINK) is showing strength and is up 1.17%. LINK often one of the most resilient cryptos according to price
· A majority of layer one/twos have not been spared. A few continue to show strength
o ADA -8.72%
o BNB -3.92%
o DOT -4.90%
o SOL -8.39%
o LUNA +1.01%
o ATOM +16.60%
· Total Market Cap (TOTAL) is down -4.72%
· Total MC minus ETH and BTC (TOTAL3) is down -3.80% indicating that altcoins are being sold off less than BTC or that money is flowing from BTC to Altcoins. Neither are typical actions during a sell-off
Major Market News
· MercadoLibre the largest e-commerce platform in South America is going to begin accepting Crypto payments in Brazil. Their fintech arm will allow users to buy and hold BTC, ETH and USDP.
· In an aim to bring more women into crypto, OKcoin has hired former Facebook spokesman and Mark Zuckerburg’s sister Randi Zuckerburg. Okcoin is a crypto exchange.
· WisdomTree a financial institution with $76 billion in assets will create 4 indices to allow customers exposure to cryptocurrencies.
· India not to ban crypto but rather regulate the sector. After a large scare last week further evidence appears that India will only regulate in attempt to prevent money laundering and terrorism financing.
· Senator Pat Toomey, a ranking member of the Senate Banking Committee, has suggested Congress step in with legislation if the SEC is unable to provide guidance on cryptocurrencies.
“For investors to benefit from a fair and competitive marketplace, federal agencies should answer questions about whether — and if so, how — new and emerging technologies fit under existing regulations,” said Toomey. “Chairman Gensler’s failure to provide clear rules of the road for cryptocurrencies underscores the need for Congress to act.”
-Senator Pat Toomey
Notable Events
· SundaeSwap (SUNDAE) has announced it will launch its testnet on Dec 5th.
· Rentible (RNB) will have its Metaverse Design unveiling today
· Epik Prime (EPIK) will list on Kucoin today
· Render (RNDR) will list on FTX today
· Immutable X (IMX) will list on Crypto.com today
· Alien World (TLM) will launch Land Packs tomorrow
NEWBIES’ lesson of the day
Controlling the fear during sell offs
Cryptocurrencies are very volatile in nature and watching your money go down 10% in one day can be a scary event. You must remember that you can’t have 300% gains in a market without occasional 30-75% drawdowns. The price you pay for those gains is paid in resilience and patience. The last thing you want to do is to panic and sell to the traders that take advantage of fear in the markets.
You must do your due diligence and research the projects you are putting your money into. If you truly believe in the technology and project, then holding on to losing positions is a lot easier. This is another reason not to invest heavily into meme coins. Read the news and see how much money is being invested into this market daily and see the hundreds of companies and banks maneuvering to get a piece of the pie. Crypto is here to stay.
Get in the habit of selling when everyone is euphoric, which is incredibly hard. And buying when everyone else is fearful. Use the tools around you to help give you an edge. This is a large-scale game where others are trying to buy your investments at a lower price than you paid for it, don’t let have it.
Have a great weekend everyone and remember to stack those sats!
TraderGabi
Follow me on Medium and Twitter under the same handle @ + TraderGabi
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