News Updates December 01, 2022
1. November was the second worst month for Bitcoin, fourth worst for Ethereum. Bitcoin and Ethereum experienced one of their worst months in 2022 in the just concluded November. November 2022 was one of the worst months for the two most popular cryptocurrencies — Bitcoin (BTC) and Ethereum (ETH).
November was Bitcoin’s second worse month in 2022
According to CryptoSlate data, Bitcoin lost roughly 18% of its value in the past 30 days — making November the second-worst month for the year and its biggest monthly loss in the last five months.
While Bitcoin’s value slightly recovered towards the end of the month, FTX’s capitulation shattered retail traders’ trust in the system. Glassnode reported that crypto investors witnessed the fourth largest capitulation on record with a 7-day realized loss of $10.16 billion
Over 50% of BTC holders are in loss after the asset’s value dropped to around $15,600 — the lowest profitability level since March 2020.
Additionally, Bitcoin miners wiped out their 2022 balances as the volume of the asset sold surpassed the amount they accumulated during the year. Miners are under increasing sell pressure as the flagship digital asset’s value struggled below the $16,000 mark.
Bitcoin miners like Iris Energy defaulted on a $108 million debt and ceased operations at two of its facilities in November. An unnamed Bitcoin miner also defaulted on rent in Dallas and left all of its equipment behind.
Meanwhile, despite all of these losses and capitulation, Glassnode reported that BTC Shrimps and Crabs have aggressively accumulated since FTX collapsed, leading to an all-time high balance.
Ethereum experiences its fourth-worst month
Meanwhile, November was the fourth worst month of the year for Ethereum as it fell almost 20%.
Following the collapse of FTX, ETH’s value fell to as low as $1,110 on Nov. 10 from over $1,600. The cryptocurrency has recovered slightly since to over $1,200. As of press time, ETH was down 18% over the past 30 days.
The poor price performance appears to have spurred Ethereum whales and shrimps to accumulate. CryptoSlate’s analysis of Glassnode data shows that investors in these cohorts have been accumulating Ethereum at an aggressive rate.
Despite the late rally towards the end of the month, crypto analysts’ disposition towards the asset remains bearish. Popular crypto trader Capo of Crypto tweeted on Nov. 28 that he expects a capitulation that would send ETH price to around $600 to $700 soon.
2. Investors Should Keep An Eye On These Cryptos Throughout December.
The CEO of Eight Global and the well known crypto analyst and trader, Michael van de Poppe, revealed the three cryptocurrencies to keep an eye on throughout the month of December in his newest YouTube video. These cryptos include Chainlink (LINK), Binance Coin (BNB), and Polygon (MATIC).
Data from CoinMarketCap indicates that LINK is currently trading hands at $7.54 after a 0.87% increase in price over the last 24 hours. The crypto was able to reach a high of $7.72 but a low of $7.32 over the same time period.
Things have been going well for the altcoin over the last week as LINK is currently in the green by more than 12% in just seven days. LINK did, however, weaken against the two biggest cryptocurrencies in the market, Bitcoin (BTC) and Ethereum (ETH), by about 0.37% and 0.09% respectively.
Another crypto van de Poppe is keeping an eye on is BNB, which is currently worth $298.83 after a 0.38% drop in price over the last 24 hours. The crypto is still in the green by 0.48% over the last week.
BNB’s 24 hour trading volume is in the green for today, and now stands at $1,036,620,065 after more than 6% increase.
Van de Poppe is also keeping an eye on MATIC as he believes that MATIC’s price usually increases when the price of BNB goes up. MATIC’s price is up by 5.73% and now trades at $0.921. The altcoin is also still in the green by more than 5% over the last week.
Over the last 24 hours, MATICS’s trading volume saw a 90% increase to now stand at $509,858,649.
3. Strong Bullish Support for Bitcoin Expected as Fed Chair Makes Encouraging Announcement.
On Wednesday, the head of the U.S. Federal Reserve, Jerome Powell, announced that starting in December, smaller rate hikes are likely to begin, giving the markets hope.
"Wu Blockchain@WuBlockchain
Fed Chairman Powell said that he sees the central bank in position to reduce the size of rate hikes as soon as next month. But he cautioned that monetary policy is likely to stay restrictive for some time until real signs of progress emerge on inflation".
Interest rates hikes to start going down Cryptocurrencies responded by beginning to grow even before the speech of Powell as Bitcoin regained the $17,000 level and Ethereum went back above the $1,300 price line. This year, the Fed has been demonstrating a hawkish policy, raising interest rates several times starting from March and pushing them to record highs since the mortgage market crisis in 2008. These rate hikes have been the major reason for Bitcoin and other cryptocurrencies rolling back in price this year and even this week.
4. Weekly Cryptocurrency Market Analysis: Altcoins In Upward Correction As They Break Through More Resistance Levels.
There is a favorable uptrend in altcoins this week. Chainlink, Fantom, Dogecoin, Huobi Token, and ApeCoin are among the best performing cryptocurrencies this week. Fantom and other cryptocurrencies perform best when they break through more resistance areas. Let us discuss the following points now.
Fantom
The price of Fantom (FTM) has crossed the moving average lines and is currently rising. On November 28, the price of the altcoin crossed both the moving average lines and the support at $0.18. The current price of FTM is $0.24. If the current uptrend continues, the price of the cryptocurrency will rise and reach the previous high of $0.31 again. FTM is currently above the level 80 of the daily stochastic. This shows that the market has entered the overbought zone. This explains why it seems unlikely that the trend will continue. This week, FTM, which has the following characteristics, was the best performing cryptocurrency.
Dogecoin
The price of Dogecoin (DOGE) is in the positive trend zone as it crosses the moving average lines. DOGE has risen to a high of $0.11 today. During the previous price action, it made a comeback and reached a high of $0.16. As the cryptocurrency moved into the overbought zone, the positive momentum could not last. If the current bullish momentum is maintained, the positive momentum will increase to a high of $0.15. The moving average lines are above DOGE. If DOGE maintains its position above the moving average lines, the current uptrend will continue. The Relative Strength Index for period 14 shows that the cryptocurrency is above level 62.
Huobi Token
The price of Huobi Token (HT) is down, but has resumed an upward correction. The price of the cryptocurrency has risen above the 21-day line SMA but has failed to break the 50-day line SMA HT is now fluctuating between the moving average lines. The cryptocurrency price will resume a sideways movement between the moving average lines. It will develop a trend when the moving average lines are broken. The cryptocurrency has reached the overbought zone of the market. Further upward movement of the altcoin is doubtful. HT has reached the overbought area at level 80 of the daily stochastic. It is currently the third best performing cryptocurrency this week.
ApeCoin
Apecoin (APE) is falling and is currently in an upward correction. Before it was rejected, the upward correction rose to $4.50. Buyers aimed to keep prices above the moving average lines. APE will rise to a high of $5.00 if it stays above the moving average lines. If buyers fail to maintain bullish momentum, APE will fall below the moving average lines. The cryptocurrency's 50-day SMA SMA line is where it is currently trapped, between the moving average lines. The Relative Strength Index for the 14 period is at 58, and it can go even higher as it is in the uptrend zone. The performance of APE ranks fourth among all cryptocurrencies this week.
Chainlink
The price of Chainlink (LINK) fell but has since recovered. The price of the cryptocurrency has surpassed the moving average lines. If the current bullish momentum continues, LINK will rise to $9.48. The altcoin is now at a point where the market is overbought. At the recent high, the current uptrend is rejected. If the altcoin is rejected at the current high, it may fall. Chainlink is trading above level 80 of the daily stochastic and in the overbought zone. LINK is the fifth best performing cryptocurrency overall.
5. Bitcoin sees worst monthly close in 2 years as traders watch $16.7K
BTC price action strengthens into the November monthly candle close, but traders are already warning over getting too “cocky” on Bitcoin.
Bitcoin BTC tickers down $17,087
attempted to flip $17,000 to support on Dec. 1 after sealing its lowest monthly close in two years.
Bitcoin gains inch up as November end
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling $17,100 in a second intraday charge at higher levels.
The pair managed to avoid losses as the monthly candle closed, instead seeing solid daily gains of around 4.5% for Nov. 30.
Nonetheless, Bitcoin shed 16.2% for the month, making November 2022 its worst since 2019.
The more buoyant mood coincided with comments from the United States Federal Reserve. In a speech on inflation and the labor market, Chair Jerome Powell openly stated that smaller interest rate hikes could begin as soon as December.
“Monetary policy affects the economy and inflation with uncertain lags, and the full effects of our rapid tightening so far are yet to be felt,” he said:
“Thus, it makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down. The time for moderating the pace of rate increases may come as soon as the December meeting.”
Powell characteristically cautioned on heralding a full turning point in policy, something markets had been keenly awaiting throughout the year.
“Given our progress in tightening policy, the timing of that moderation is far less significant than the questions of how much further we will need to raise rates to control inflation, and the length of time it will be necessary to hold policy at a restrictive level,” he added.
Nonetheless, stocks reacted positively, with the S&P 500 and Nasdaq Composite Index ending the day up 3.1% and 4.4%, respectively, in line with Bitcoin.
