FameEX Weekly Market Trend | December 28, 2023

1. Market Trend

From Dec. 25 to Dec. 27, the BTC price swung from $41,637.00 to $43,820.26, with a volatility of 5.24%. The prior analysis report stated that as long as BTC does not fall below $42,500 in the short term and $40,500 in the long term, or in case of a breakdown, it can quickly recover, the fluctuations during this period are considered invalid. In recent days, BTC showed minimal fluctuations, suggesting a consolidating market with no clear trend. Despite a brief dip below the $42,500 support, it quickly rebounded (the current position is already within a short-term area of concentrated chips), marking it as an insignificant breakthrough. The overall trend remains upward with no structural damage. As of now, $44,000 is a formidable resistance, and the same holds for $45,000. BTC has been fluctuating between $41,000 and $43,000 for over 10 days, with technical upside potential emerging. Therefore, the prevailing strategy is to hold onto cryptos and await an upward movement.

Source: BTCUSDT | Binance Spot 

Between Dec. 25 and Dec. 27, the price of ETH/BTC fluctuated within a range of 0.05209-0.05511, showing a 5.8% fluctuation. The previous analysis mentioned that, following the breakthrough of 0.05450 in ETH/BTC, it is essential to observe the stabilization. If there is a substantial volume breakthrough and a stable position above 0.05450, considering entry becomes relevant. In recent days, ETH/BTC has experienced a rebound with significant trading volume. After surpassing 0.05450, there is no sign of a pullback, indicating a continued upward trend. The 1-hour and 4-hour charts have opened an upward channel, but on the daily chart, a stable upward space in the larger timeframe may only occur if it breaks and holds above 0.05650. Consider entering the market after the stabilization of 0.05650 or engage in trading during a pullback near 0.05450.

Source: ETHBTC | Binance Spot 

Based on overall analysis, the current market is in a period of consolidation, with a slight decrease in turnover rate and fund inflows in recent days, closely correlated with BTC’s activity level. We are awaiting BTC to stabilize around $44,000 and initiate a push towards $45,000. Once this happens, the overall market is expected to enter a new upward trend. During BTC’s consolidation phase, there may be favorable development opportunities for other cryptocurrencies (OP, ARB, BCH, BSV, etc.), as evidenced by significant increases in recent days. ETH, influenced by the Cancun upgrade event, might lead a new round of upward movement in the future.

The Bitcoin Ahr999 index of 0.91 is between the buy-the-dip level ($30,170) and the DCA level ($49,260). Therefore, it is advised to purchase popular coins via DCA.

Source: OKLink

2. Perpetual Futures

In general, the 7-day cumulative funding rates for the popular coins across major exchanges are positive, indicating that long leverages are relatively high.

Source: coinsoto

The BTC and ETH contract open interest both remained unchanged from major exchanges.

Exchange BTC Contract Open Interest:

Source: coinsoto

Exchange ETH Contract Open Interest:

Source: coinsoto

3. Industry Roundup

1) On December 25, Ordinals achieved a cumulative fee income exceeding 4,900 bitcoins.

2) On December 25, OKX CEO stated: “We do not accept recommendations but rather select projects from the market based on research.”

3) On December 25, the central bank released the “China Financial Stability Report (2023)”, stating that China has effectively curbed risks in the cryptocurrency field.

4) On December 26, Sui TVL surpassed 200 million US dollars.

5) On December 26, data revealed that the total assets under management for cryptocurrency ETP products reached 50.3 billion US dollars.

6) On December 26, opinions surfaced that Solana’s price would align with Ethereum and eventually surpass it.

7) On December 27, Binance’s global user base exceeded 170 million.

8) On December 27, Elon Musk commented that NFTs should at least encode JPEGs on the blockchain.

9) On December 27, the Hong Kong Securities and Futures Commission stated that spot virtual asset ETFs are only allowed to trade on futures exchanges regulated by the Commission.

10) On December 27, a report predicted that AI agents will dominate blockchain by 2024.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.