Weekly Wrap-Up | 12/20/21 - 12/25/21
By Matthew BrienenNews Flash
Wednesday 12/22/21: Crypto.com has bought a 30 second Super Bowl ad for $6.5M. Crypto.com CEO Kris Marszalek stated that the company’s top brass wants the exchange to become one of the world’s top 20 consumer brands in the next three to five years—placing it in the company of sports and tech giants like Nike and Apple. In April, FTX landed a huge deal with the NBA’s Miami Heat, becoming the franchise’s “official and exclusive” crypto partner. The deal saw the Heat’s home stadium—known for the last 22 years as the American Airlines Arena—become the FTX Arena.
Thursday 12/23/21: The U.S. Securities and Exchange Commission (SEC) has rejected two more physically backed Bitcoin exchange-traded funds (ETFs) proposed by Valkyrie and Kryptoin, respectively. According to the Commission, NYSE Arca and Cboe BZX Exchange, which filed respective proposed rule changes to list and trade Valkyrie and Kryptoin products, “failed to demonstrate that their proposals are consistent with the requirements of Exchange Act Section 6(b)(5)." The SEC is due to rule on Anthony Scaramucci’s Skybridge Bitcoin ETF before January 22, with a decision on Fidelity's Wise Origin Bitcoin Trust application due on January 27.
Friday 12/24/21: Turkey’s draft crypto bill is ready and will soon be sent to parliament, Turkish President Recep Tayyip Erdoğan said Friday during a press conference in Istanbul. Erdoğan said at the time the country would "move forward with our own currency that has its own identity.” The status of cryptocurrency exchanges matters because Turks increasingly use them to sell the Turkish lira for U.S. dollar-pegged stablecoins, according to Bayraktar. The Turkish lira has fallen by 34% against the U.S. dollar this year but has gone up by 41% this week after a precipitous drop earlier this year, according to TradingView.
Bitcoin Technical Recap
BTC has had an excellent week amid the heavy selling pressure that's been at play since early November. Price was able to successfully to hold the purple band as key support, setting lows in the $45,000 region. Additionally, Bitcoin was able to invalidate two macro bearish structures. The bear flag (illustrated w/ blue lines) which generally suggests a continuation of a downtrend, was broken & violated on Dec 21. Price then produced a much more convincing break of a larger descending trendline (illustrated w/ black line), moving as high as $51,900 before moving back down to retest the breakout area. Bitcoin may look to consolidate in this area and ensure its a new floor of support before moving higher. A strong break above the $53,000 level & a reclaiming of that zone (yellow band) as support will give the rest of the crypto market the greenlight to move significantly higher.
BTC/USD Daily Chart
Ethereum Technical Recap
ETH also broke its macro descending wedge pattern on Dec 21, printing a candle as high as $4,155. Daily candles have since continued to close above the $4,000 mark, now serving as a key area of support. Ether's recovery was a much lesser percentage than BTC, which is to be expected after seeing BTC's recovery handicapped while the rest of the market surged double digit points. The ETH/BTC chart suggests that ETH still has the dominant hand as price continue to make a bull flag on top of the breakout zone from early December. It's likely that both blue chip cryptos will rise slowly together until the key level of $53k for BTC has been flipped as support, with a slight lead from ETH.
ETH/USD Daily Chart
ETH/BTC 2 Day Chart
Project Breakdowns & Daily Update Recaps
Didn't catch all the daily update streams? We've got you covered with highlights & links to the full episodes. Monday 12/20/21: Brian Decker kicked off the week with some key crypto tax concepts to consider, offering some resources to help gauge your potential tax bill. Dan Habib also brought some on-chain insights including supply shock, average holder costs basis & the crucial SOPR metric. We closed out the show with analyst Matt Brienen highlighting some altcoin breakouts.
Tuesday 12/21/21: Looking at some macro data, Decker helped us understand exactly how much money enters the crypto markets by generation, showcasing just how early we in this emerging market. We also took a look at a very exciting project Divi including its consensus model, partnerships & ecosystems. Brienen presented further breakouts across the board & the optimistic outlook for XRP.
Wednesday 12/22/21: Habib brought some massive bullish supply data on stream, suggesting more bullishness for BTC may be afoot in Q1 of 2022. Matt discussed the $SOLO airdrop process, as well as issuing a warning of buying an asset at a lofty price simply for the sake of acquiring more coins.
Thursday 12/23/21: Matt & Dan closed out the holiday week with some optimistic looking technicals, as well as a compelling presentation on the history of Fed Chair decisions explaining how they impact the markets long term. The pair also warned of market volatility through the end of the year as professional traders are closing out their books for 2021.
Are you registered for our next masterclass webinar? This call will be open to CryptoCharged members as well as friends and family covering the basics of trading with the trend & market structures. We will be hosting this class 1/2/21 @ 11am pst on Cryptocharged.com as well as Youtube where you'll be able to ask a question at the end. Turn on the reminder for the event here.