It's Fed Week Again
Bitcoin slumps ahead of Fed decision
Cheat Sheet -
Current support and resistance ranges plus our bias on top cryptos, oil, and stocks.
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What We Are Watching
We further breakdown our case for these cryptos here : What We Are Watching
Crypto News
Aptos unlocks nearly 25 million APT tokens, worth over $200 million (The Block)
Synthetix to end SNX token inflation, shift focus to buybacks and burns (The Block)
BRC-20 tokens are presenting new opportunities for Bitcoin buyers (CoinTelegraph)
El Salvador’s Bitcoin bond gets regulatory approval, targets Q1 launch (CoinTelegraph)
Explaining Bitcoin’s ‘Flash Crash’ (CoinDesk)
China to Verify Citizens' Identities With New Blockchain-Based Platform (CoinDesk)
DTCC closes deal to buy Securrency amid TradFi-crypto integrations (Blockworks)
Where pension funds stand today on crypto investments (Blockworks)
Google Cloud to Run Validator on Crypto Gaming Network XPLA (Decrypt)
US surgeon sues Coinbase after hackers pay off debt, steal $350K (Protos)
Why Brazilian bank’s embrace of Bitcoin is a lot like BlackRock’s planned ETF (DLNews)
BTC Outlook
Bitcoin’s price fell 8% on Monday before recovering some over night. The price is now hovering around the December 4th 2021 low that we suggested could be the top of a new trading range. If the daily price candle closes below this $41800 level it becomes more likely that the momentum from the recent rally has come to a head and the price will now begin drifting back down towards the 200 day moving average which itself will soon cross $31k in the coming week.
This weeks price action may be driven by the anticipation of the Fed decision that will be announced at 2pm ET tomorrow, December 13th. Currently, it is predicted that the Fed will hold interest rates steady. The CME FedWatch Tool puts the chance of an interest rate hike at just 3%. It would be surprising if Bitcoin’s price moved very much in response for rates being held at current levels. The sell off yesterday is likely a natural response to how fast the price has moved up over the past months with many taking profits at a popular target level.
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Possible Course of Action
Stay Long here while price remains above 50 day MA
Short if price falls below 50 day MA
DCA into spot long over next 6 months in anticipation of Halving (2024 summer)
The Bulls’ Defense:
ETF decision likely to happen in the first two weeks of January
The Bears’ Prosecution:
Price has reached a key resistance level and lost momentum
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