Weekly Crypto Recap with NewsCrypto
Welcome back, NewsCrypto enthusiasts! It's time for another edition of the Weekly Crypto Recap newsletter.
Bitcoin just hit the new local high of $38.5k on futures chart but looks like it’s going to sell off.
Do you want to know what’s going to happen next, which charts are we looking at and if this rally is fuelled by new money (inflows) coming in or just another “scam pump”? Read this newsletter to the end to find out!
What's on the menu today?
1. Breaking Crypto News
2. BTC TA Analysis
3. Is New Money Coming into the Crypto Market?
4. Funniest Meme of the Week
· Dubai’s financial regulator has approved XRP as a recognized crypto token for use within the Dubai International Financial Centre (DIFC).
· Fidelity’s director of global macro says bitcoin is “exponential gold.”
· SEC’s former head of internet enforcement says the conviction of ex-FTX CEO Sam Bankman-Fried is “just the tip of the iceberg”.
· Circle (USDC) has announced a new v2.2 upgrade for its usd coin and euro coin digital stablecoins.
· Ripple has expanded its payments network to more than 70 crypto and traditional payout markets.
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Bitcoin TA Analysis
· Crypto Fear and Greed Index update
· Bitcoin Weekly Time Frame
Bitcoin is currently sitting above the $36k support zone. On a weekly time frame it would be best if we manage to stay above it otherwise we will have to break through it once again. Since we didn’t have any problems doing it once it shouldn’t be a problem doing it twice but it wouldn’t be ideal.
Good news is that we don’t have any resistances to break through all the way up to $46k-$48k! This means BTC has the room to grow for another 25-30%.
· Bitcoin Daily Time Frame
Zooming in on a daily time frame first thing we see is the FVG (Fair Value Gap) between $31.7k and $32.8k. FVGs gets filled sooner or later meaning there is a very high likelihood of BTC at least wicking down to ≈$32k. It won’t happen without signs of BTC breaking down.
The first sign could be if it falls down to the top grey area (breaker on 4h) and bounces of the $36k resistance. We are respecting the pump until we are proven otherwise so we expect BTC to come down to the breaker $35.2k - $36k and continuing the rally but it’s important to watch how Bitcoin reacts once it comes down.
1. BTC dips below $36k and bounces of resistance ➡️ Short
2. BTC dips below $36k then finds support above $36k ➡️ long
· BTC Dominance & Total3 Market Cap
Bitcoin Dominance broke out but is now retracing. It is currently sitting slightly below the 52.27% support signalling BTC is doomed for a correction or it’s time for alts to rally even more. Wait until there is a clear close above/below otherwise you could be caught on the wrong side of the move.
BTC.D could come all the way down to 45%-47% to fill the FVG. This wouldn’t be great for the market since Bitcoin has to lead the rally in order for it to be sustainable. It will most likely fill the FVG after BTC hits all-time high.
Dominance was at this level last in April of 2019 - just before the bull market started. NFA but something to think about.
Looking at the Total3 market cap (Crypto market cap excluding $BTC and $ETH) is breaking out further confirming BTC.D could be doomed for a correction and that altcoins will rally. This isn’t neccessarily 100% what’s going to happen because it could be just another fakeout just like the one marked with the orange circle.
Is New Money Coming into the Crypto Market?
Crypto funds are experiencing their best run of inflows since the heady days of the 2021 bull market. According to a report by digital asset management firm CoinShares, there's been a significant uptick in investor interest. Last week alone saw a whopping $261 million of net inflows, contributing to a six-week total of $767 million - reflected in the market cap of stablecoins.
In the world of crypto funds, Bitcoin (BTC) continues to wear the crown. Bitcoin funds attracted the lion's share of the inflows, with $229 million last week and a staggering $842 million this year. The growing likelihood of a U.S. spot-based bitcoin ETF and some softer macroeconomic data are the cheerleaders boosting Bitcoin's popularity.
Ether and Others
Not to be left in the dust, Ether (ETH) funds are also seeing some love. They've had their largest inflows – $17.5 million – since August 2022. It seems investors are warming up to the second-largest crypto asset - consequence of BlackRock applying for ETH ETF.
Other digital assets like Solana (SOL) and Chainlink (LINK) are also joining the party. Solana funds enjoyed $11 million in inflows last week, while Chainlink funds attracted a cool $2 million.
Institutional Interest: A Proxy for Demand
Market observers often look at digital asset fund flows as a barometer for institutional investor interest. The recent stretch of inflows is a strong signal that demand for crypto assets is on the rise, especially following a bear market that felt like a never-ending winter.
Funniest Meme of the Week