Weekly Crypto Analysis: Bitcoin at $25k or $21k? Pivotal Week Ahead

2023/01/30 13:54:40

Bitcoin’s two-week rally has slowed as traders stand aloof ahead of a week filled with the FOMC, ECB, and BoE meetings.

Bitcoin, which had increased its price by over 39% this new year, has not broken the $24,000 price and is primed to continue below this price for the next few days. The market unanimously expects the US Feds to increase interest rates by 25%, and anything above that could spell short-term doom. The bears will also cite Bitcoin’s overbought status on the daily RSI (81) as proof that it is due for correction. If it doesn’t, the bulls will take control of the market until it hits its August 2022 peak of $25,000.

The bulls equally have a valid claim at a rally, as the December US PCE, something the Feds have been particular about, rose just 4.4% from last year. The SRR, a ratio that measures the supply of Bitcoin to Stablecoins, also shows an inflow of Stablecoins into exchanges, probably aimed to capitalize from market volatility.

Bitcoin Stablecoin Supply Ratio | Source: Glassnode

The Bitcoin Lightning Network Capacity has also been up, reaching record highs last Monday. The implication of this is that more transactions can be processed at shorter transaction times and lower fees.

Bitcoin Lightning Network Capacity | Source: Bitcoin Visuals

Ethereum, on the other hand, increased by just 0.1% this past week, Cardano by 5%, and Avalanche by 16%.

Cryptocurrency Heatmap | Source: Coin360

Top Altcoin Gainers and Losers

Top Altcoin Gainers

Aptos (APT) ➠ +96.24%

Fantom (FTM) ➠ +28.8%

eCash (XEC) ➠ +25.23%

Top Altcoin Losers

Maker (MKR) ➠ -4.61%

Synthetic Network Token (SNX) ➠ -3.45%

Flow (FLOW) ➠ -3.56%

Fear and Greed Index at 55, Market Starting to Get Greedy

The Fear and Greed Index has moved to the Greed zone, having stayed in the neutral zone last week. This is the first time in months that the meter has flipped to the green side, and it is somewhat expected considering the flurry of government meetings lined up for this week.

Fear & Greed Index | Source: Alternative

This Week’s Crypto News Highlights

Australia Ranks 3rd in Crypto ATM Installations After USA and Canada

The current market has not deterred the installation of Bitcoin ATMs worldwide. Australia is a testament to this fact, as it recently broke into the top three countries with the most crypto ATM installations.

The country now has 234 new crypto ATMs, after 16 new machines were installed in January 2023, and has twelve more ATMs than Spain in fourth place.

The only countries with more crypto ATMs are the United States and Canada, with outlandish 33,387 and 2,556 ATMs, respectively. Australia installed 106 crypto ATMs from December 2022 and is followed by Spain and El Salvador on the list of Countries with the most Bitcoin ATMs.

NFT Collector Sues OpenSea for Locking Account After Being Scammed

An NFT collector, Robbie Acres, is suing Opensea for incurred losses after the NFT Marketplace locked his account for over 3 months.

Having been a phishing scam victim, Robbie reported the hack to Opensea and was met with communication difficulties. When, eventually, his request went through, the Marketplace’s first action was to lock his account, and they didn’t open it until three months later.

Although that wasn’t the solution he wanted, he kept sending them messages to unlock his assets, but the marketplace requested him to perjure himself with a statement. During this period, Robbie’s NFT assets have lost over $500,000 of their value, and he blames it on the restriction placed on his account.

Leaked Bids: Binance and Galaxy Digital Among Secret Bidders for Celsius Assets

Recently leaked information from popular crypto Blogger Tiffany Fong showed that Binance and Galaxy Digital are two popular companies that bid for Celsius Network’s assets. The information on the companies interested was private so as not to disrupt the negotiation process, but Fong explained she had had the document since December 2022.

The other companies in the negotiation process are Bank To The Future, Cumberland DRW, and digital asset investment firm NovaWulf.

Fong shot to the limelight following the FTX saga and her several interviews with Sam Bankman-Fried. She claims the negotiation bids had been submitted since November 2022, but were ‘for the large part, abandoned.’

Yuga Labs Co-founder to Step down Due to Health Reasons

Following a diagnosis of congestive heart failure, nonfungible token (NFT) entrepreneur Wylie Aronow of Yuga Labs—the group behind Bored Ape Yacht Club (BAYC) and CryptoPunks—will be taking a leave of absence from the workplace to prioritize his health.

Aronow explained the difficult decision to leave in a tweet on January 28 to his 144,900 followers, adding that the diagnosis of heart failure came after suffering a variety of symptoms over the previous few months.

While his "moderate" symptoms still allow him to lead a "largely normal existence," the NFT entrepreneur claimed that his illness has quickly worsened to the point that he is forced to deprioritize his business.

The co-founder of Yuga Labs did not specify a timeframe for when he hoped to recuperate and resume his responsibilities. Aranow did, however, affirm that he would continue to serve as a board member and strategic advisor.

Crypto Calendar: Events to Watch This Week

➺ 29/01/2023 - Render (RNDR) LBank Listing

➺ 29/01/2023 - Aurora (AURORA) AMA with UNO Farm

➺ 30/01/2023 - Bitfrost (BFC) Mainnet Launch

➺ 30/01/2023 - Vega Protocol (VEGA) Twitter Spaces

Bitcoin (BTC/USDT) Technical Analysis

Bitcoin has broken the ceiling of the falling trend in the medium and long term, indicating a slower initial falling rate. The currency is between support at points $21,400 and resistance at points $25,000. A definitive break through of one of these levels predicts a new direction.

Volume tops and volume bottoms correspond with tops and bottoms in the price. Volume balance is positive, which strengthens the currency. RSI above is also above 70, showing positive momentum in the short term.

BTC/USDT Chart on the Daily Timeframe| Source: KuCoin

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