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Bitcoin Stares Down the Bear - Chung's Weekly Digest (1/23)

Engulfing huge red candles flushed many out of their leveraged longs as the crypto market hangs on for survival.

Bear Market Arrives

The crypto market took a nosedive alongside the NASDAQ as the market participants turned away from growth to value-based investments as market volatility continued. Bitcoin ($BTC) plummet below $35k, breaking key support levels. Some analysts have turned bearish calling for a $30k bottom. 

Source: The recent dip has sent shivers to even the most hardened of investors    

Most investors are taking a wait-and-see attitude as the upcoming Federal Reserve meeting will give some indication on incoming monetary policies. 

Some market observers like Anthony Pompliano are saying this dip is like the dips of last year. Market volatility for Bitcoin is still high, and this often results in swing highs and swing lows. But this narrative must be balanced with the fact that in previous cycles Bitcoin has hit its top in December and has started to trend downward. 

Whether the bull cycle is over or not, is often indicated by a blow-off top. This has not taken place and the market is far from the euphoric stage. On the higher time frame, Bitcoin has not broken the bull trend. The trend will only be invalidated if it charts a lower low. The lower low on a weekly time frame is at $28.9k. 

Source: Bitcoin is precariously close to a major support line 

Weekly Recap


Market Sentiment

Source


  • The crypto market is trying to find new positive catalysts to stay in trend. 
  • Most investors holding back from participating. 
  • Bitcoin fell sharply and altcoins took a more severe beating. 
  • Most investors, except for the long-term holders, are holding on to unrealized losses. 
  • Bitcoin’s all-time high on network difficulty is definitely not a bearish indication. 
  • This period of uncertainty with a bearish bias will continue to dominate the market for the next few weeks until new catalysts emerge. 

Coins to Watch

  • Terra ($LUNA), the native token on the Terra blockchain, shows that despite the sharp and sudden dip, its algorithmic stablecoin ($UST) is able to hold its value. 
  • Stablecoins are becoming a staple in the crypto market. If $UST is indeed superior to its competitors and less controversial than its centralized counterparts, its demand will surge.
  • $FTM, $LUNA, $SUPER, and $SOL are heavily discounted with good potential upsides. 
  • Superfarm ($SUPER) combines crypto, NFT, and gaming code-free. The recent dip has sent the price to a very attractive price for a short-term relief bounce. 

Come back next week for another iteration of Weekly Digest: Chung's Picks of the Week from BSC News. Be sure to follow Chung on Twitter.

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