15 Dec 2021

Bitcoin drop, Ethereum holds strong, and Luna aiming to the top.

Market Analysis from the last week of the most influent markets in the cryptocurrency world.

BTC/BUSD Market

Bitcoin (BTC) price in USD (BTC/BUSD) started the week bearish, continuing the previous lateral/down move. We saw the previous week closing with a bullish Doji, hinting to a potential reversal, but ultimately struggling to regain the Weekly 20EMA, signaling a potential bitcoin drop.
BTC/BUSD weekly candle chart with supports and resistance
BTC/BUSD graph with weekly candles - outlook still bearish, signalling a down move towards previous supports
The areas of interest that need to be monitored closely, are previous historical support levels, $45k/43.2k seen a few weeks ago with the bitcoin crash, which was also correlated with the crash in traditional financial markets, and the lower support level of $40.8k/39k, that would be a great low risk/high reward entry for long holdings.

Additionally, bitcoin dominance keeps on slowly declining (41.9%), whilst ethereum rising (21.3%), explaining why bitcoin is going down, and signaling that investors are moving their money out of bitcoin and into altcoins or stablecoins. This is reflected in the price vs BTC of many of the main altcoins.

Relevant News

In the latest bitcoin news, Australian man, Craig Wright, who claims to have invented bitcoin, wins a court case in the US, meaning he will not have to pay half of the bitcoins he owns ($50B) to another family. This was a major trial for crypto, as the case ended with the jury awarding $100m in intellectual property rights to the company owned by the Australian.
Craig Wright had made claims in the past that if he won the court case, he would donate part of his winning to charity. While this is still unclear, many still doubt whether he actually owns the bitcoins and can actually transfer them from the wallets they are in, meaning that this will unlikely have an effect on bitcoin price today.

ETH/BUSD Market

Ethereum price opened the week bearish, continuing the downwards trend started a few weeks ago after reaching all time highs (ATH) of $4,850. Similarly to bitcoin, the downward trend seems to be fuelled by the drop in traditional financial markets, which many blame on the latest negative news such as Evergrande, and the new Covid Omicron variable.
ETH/BUSD weekly candle chart with supports and resistance
ETH/BUSD graph with weekly candles
The key levels to monitor for ether price are the 20EMA on the weekly, around $3.7k, a key level that we saw hold several times in the past few months, as well as the lower horizontal supports 3.4k and 3k on the ethereum dollar pairs (eth to usd). If the 20EMA holds, it's likely that there could be a push towards $4.6k or new ATH. If the price doesn't hold, it is likely that the lower supports will be tested.

It's also essential to monitor the ETH/BTC pair, as it's the reason why ether price has been outperforming bitcoin's. Ethereum and ether crypto coins are still among the most traded on major exchanges, like the Eth Binance pairs, with top volumes on markets such as ethereum euro, ethereum bitcoin and wrapped ethereum on DeFi.

Relevant News

Ethereum is still the second largest crypto by market cap, continuing to rise due to its use case in NFT (digital collectibles and art, tradable on Opensea), eth tokens, and it's price out-performing bitcoin. Since the switch to proof of stake, one of its founders Vitalik Buterin has still remained vocal and involved in the community, advocating for potential changes that could see eth gas fees lower, another really bullish sign for 2022.

LUNA/BUSD Market

Terra (LUNA), still one of the best performing DeFi coins, opened the week bearish, following the negative momentum of many other cryptocurrencies, but is still looking very bullish.
LUNA/BUSD weekly candle chart with supports and resistance
LUNA/BUSD graph with weekly candles
On the daily, Terra crypto has bounced perfectly on the 50EMA and regained the 20EMA, showing a potential bounce and continuation upwards. If the momentum is kept Luna coin price could soon retest the ATH of $78. Luna coin price prediction would suggest that the coin might consolidate in the range between key support of $52 and resistance of $68, before making a new move upwards potentially towards a $100 price target.

Relevant News

Luna token, coin from parent company Terraform, has been gaining popularity for its ease to create stablecoins, pegged in price to assets, like fiat and gold as well as how easily it can be stored for stacking on the desktop wallet, Terra station.
Its latest launch, White Whale Terra IDO will use Terra's ecosystem (with Luna crypto) to launch a Liquidity Bootstrapping Pool, a mechanism for launching tokens designed to defer bot activity by starting the token price high and allowing it to float down to price discovery over a pre-set period of time, such as 48 or 72 hours.

Read more : https://twitter.com/WhiteWhaleTerra
BTC/BUSD, ETH/BUSD, and LUNA/BUSD are available for trading on yanda.io dApp.

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Author: Matteo Poole
info@yanda.io