Bitcoin consolidates, Shiba barking from the bottom, and Sand discovering its future.
Market Analysis from the last week of the most influent markets in the cryptocurrency world.
After a fairly quiet weekend, with low volumes, we see Bitcoin today open the week positively, reaching prices over $49k.
BTC/BUSD weekly candles chart
The price is still ranging between the 20EMA, which coincides with the lower support of $44.8k and the 50EMA, which is the upper resistance of $51.6k. Until the price consolidates either above or below these key levels, it's likely to keep on seeing a sideways move into the new year. If it manages to break over the upper resistance, we can expect new ATH BTC prices early next year, with a BTC price target that many expect to be over $100k.
Bitcoin price is still moving sideways and is still outperforming many of the popular coins of the year, such as Dogecoin and Shiba Inu coin price, that have seen yearly profits shrink day after day, suggesting a potential bear market for these assets. Similarly to USD to BTC, we can see this on the other fiat pairs, such as Bitcoin euro (EUR to BTC), one of the leading pairs for volume in Europe.
Once the price breaks either upwards or downwards, we will have a better idea of the direction this asset will take in 2022.
Meanwhile, the government of El Salvador continues to buy Bitcoin to celebrate significant days and festivities in the country, with the president, Nayib Bukele, purchasing an additional 21 BTC on Tuesday. This latest purchase was symbolic of the celebration of the last 21 days of the year, as well as BTC limited supply of 21 Million.
This is just the latest purchase from the El Salvador government, which a few months ago purchased around 200BTC in early September, after making the cryptocurrency a legal tender in the country. This was followed by an additional purchase of 100BTC around Black Friday, and many smaller purchases that add up to over 1220 total BTC. It is estimated, at current prices, that the El Salvador government owns over $59Million worth of Bitcoin.
Crypto coin Shiba, also known as Shiba inu, has opened the week positively after sideways weekend prices that could have been the local bottom, for the short term. The second largest meme coin, after Dogecoin, has continued its downtrend, losing nearly 65% from it's all time high price of $0.88.
SHIB/BUSD graph with weekly candles
Shiba's price has traded for several days below key EMA levels, under the 20EMA, 50EMA, and even 100EMA. This could prove to be an ideal moment to buy the coin as it is massively discounted compared to its average prices over the last 6months. However, until the 100EMA level has been regained, around the $0.34 price mark, it is too early to tell whether the downwards trend is going to continue. If prices manage to push for the upper resistance and hold above the 50EMA, around $0.38, we are likely to see the trend reverse, and turn bullish.
How high will Shiba Inu go, is the question that many traders that have been investing their savings in the meme coin are wondering. As previously mentioned, until the key 50EMA level is regained, it is hard to say what Shiba inu coin price might be.
If in fact a bottom has formed and we see this short-term bounce, it is possible to see the price retest ATH and potentially could see Shib reach 1$ in early 2022. However, this is an extremely optimistic tarrget as it would see the meme coin overtake bitcoin's market cap, which many think is unrealistic.
The continued fall of Shiba surprised many traders, as following recent positive news, many expected the price to bounce, at least in the short term.
One of the positive recent news was the partnership between Bitpay and VR Club, the largest virtual reality club in North and South America. By accepting Shiba Inu through BitPay services, holders of the coin can now spend their coins at merchants that accept BitPay.
Regardless of this integration, Shiba's price is still going downwards, trying to find a bottom at key lower levels of support, signaling it might close the year on a down trend, but start next year strongly.
Sand coin is still continuing strong and looking like one of the best coins of the year to hold.
SAND/BUSD graph with weekly candles
After reaching its ATH, at over $8.50, the coin is having a sideways consolidation period, ranging between $5.40 and $4.70, coinciding with the 20EMA and the 50EMA. If Sand price manages to hold this level, and stay above the 20EMA, $5.20, it is likely to see a bullish continuation of the trend and a push upwards to retest the ATH prices around $7.50.
On the other hand, if this level fails to hold, it's likely that we will see a retest of lower supports around $4, and $3.20, which would coincide with the 50EMA and 100EMA.If the trend moves towards retesting these lower levels, its likely to see the beginning of 2022 as a short term downtrend for Sand coin.
What is SAND? The blockchain-based metaverse, or virtual world, allows users to build, create, buy and sell digital assets known as the sandbox nft; with a main focus on allowing user-generated content and involving players in the development process.