It’s that time again when we take a quick look back at what happened last week and then preview the week ahead. There’s a lot going on, so keep reading for key market events, price analysis, news and crypto trivia. It’s all here, courtesy of your favourite crypto exchange, DSX.
Market Highlight — Bitcoin Futures in the Spotlight
Bitcoin (BTC) has had a whirlwind year. Volatility has been a constant feature for the world’s most popular cryptocurrency, with the price often going up and down by thousands of dollars in just minutes.
Today, BTC is at almost half of its year-to-date highs, with the wider crypto market also stuck on a downward trend for the past six months.
But the Bitcoin futures market is somewhat of an anomaly. With premium rates rising even as the actual price of Bitcoin falls. Between the 29th of November and the 2nd of December, the premium on Bitcoin futures increased by almost 30%, while Bitcoin’s price dropped by around 6%.
Why is this happening? Well, a number of analysts are saying that this is a sign that traders are anticipating changes in the price of Bitcoin. Despite the recent downward trend, many Bitcoin and crypto market watchers are feeling good about next year. This may also have something to do with the upcoming “halvening”, due to happen in May next year, which may (or may not) cause a high level of volatility.
Traders should watch this space to see how reliable (or not) Bitcoin futures are as a barometer of actual Bitcoin price movements.
Crypto Market Cap Review
At the beginning of last week (02.12), the total crypto market capitalisation stood at $200.30 billion. The market closed the week with a total market capitalisation of $205.39 billion, signifying an increase of $5.09 billion (2.54%) over the week.
We’ll now take a closer look at some of the most interesting pairs in the Cryptosphere, explaining what happened to them last week, and what might be coming up in this one. This week, we’ll focus on BTC/USD, ETH/USD and EOS/USD – all of which are fully tradeable, along with 55 other pairs, on the DSX exchange.
Momentum is slowly building for Bitcoin. After forming a base above $7,000, Bitcoin climbed above the $7,500 resistance point. At the time of writing, BTC is trading just above that resistance, at $7,577.
The next objective for Bitcoin is to stay above the $7,220 support. If it does so, the price could rally above the $7,500 resistance zone. However, if BTC slips to the $7,220 level, its price could then dip towards the $7,080 support area, and below that, down to $7,000.
ETH price is struggling to gain pace above the $152 and $158 resistance levels. At the time of writing, Ethereum is priced at $151.76.
The pathway is clear for ETH. It’s very close to that $152 resistance. Get over that and we’re aiming squarely at $158. A sustained push higher than this, and ETH could be in for bigger gains, with the next major resistance at $172.
On the downside, a break below the $144 support level could push the price down to the $140 level. The next major support is around $132 and a drop below this region could send Ethereum down towards the $125 zone.
At the time of writing, EOS is sitting at $2.77. The crypto token finds an immediate support at $2.67, and its next resistance lies waiting at $2.86.
However, if things do go south, EOS could gravitate toward the next support at $2.60. Should the bears continue to strike they will find a further support at $2.40 and then at the recent low point of $2.37.
Crypto News — In Case You Missed It
- Microsoft Azure Announces Blockchain Token and Data Management Service. The blockchain-enabled cloud service, Microsoft Azure, has announced new tokenisation and blockchain data management services. According to the tech giant, the Azure Blockchain Tokens service has been built to simplify the definition, creation and management of compliant tokens built to industry standards. Read more.
- Deutsche Bank: Crypto Could Replace Cash by 2030 as Fiat System Looks ‘Fragile’. Cryptocurrencies have the potential to eventually replace cash, according to new research from financial services giant Deutsche Bank. In the “Imagine 2030” research report, the bank stated that cryptocurrencies may have, so far, been “additions” rather than “substitutes” in the finance world, but the next decade could change that as regulatory hurdles are surmounted. Read more.
Crypto — Did you know...
The name EOS is a total mystery! The crypto token’s creators have never provided a formal definition for the three-letter-abbreviation “EOS”, leaving it to highly imaginative crypto enthusiasts to decide. As a result, different people have suggested different meanings for the name, such as ‘Ethereum Operating System’, ‘Ethereum On Steroids’, ‘EOS Operating System’ and such like. Maybe one day we’ll know the real answer, if there is one!
Trade Crypto with DSX
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See you soon,
The DSX team