The Crypto Pulse December 7th

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Rollbit's weekly analysis and review of the news in Bitcoin, Ethereum, NFTs and cryptocurrency markets.

News 📰

Institutions Took Crypto Profits Amid 'Shaky' Macro Picture, Trading Execs Say

Bitcoin fell to the lowest level in over 2 months, reaching lows below $42,000 on December 4th after trading near $57,000 just a couple of days prior.

One trading executive told The Block that there appeared to be an institution that sold more than $500 million in Bitcoin on Friday morning. That selling triggered aggressive liquidations in the derivatives market, with more than $1.3 billion in long positions liquidated during the move from $51,000 to $42,000.

The market has recovered some of the losses on December 7th, with Bitcoin currently trading near $52,000.

Adidas Enters Metaverse With Bored Ape Yacht Club Ethereum NFT

The popular clothing brand Adidas aped into the Bored Ape Yacht Club on December 2nd in partnership with Yuga Labs, collector Gmoney, and NFT project Punks Comic.

Adidas' Bored Ape Yacht Club NFT #8774 (shown above) will be turned into a metaverse character named 'Indigo Herz' and will be featured in the next NFT issue of the Punks Comic.

Borderless Capital Launches $500 Million Algorand-Focused Fund

Borderless Capital announced the launch of a $500 million ALGO Fund II on November 30th to help develop projects built on the Algorand blockchain. The firm previously launched ALGO Fund I in June 2019.

The fund will help to develop the next generation of decentralised applications, non-fungible tokens and include initiatives to increase capital in the ALGO ecosystem through liquidity mining, lending, borrowing and yield farming.

Borderless Capital's announcement followed the launch of a new $1.5 billion venture fund by former Citi exec Matt Zhang, with Algorand enlisted as a strategic partner. While most of the top cryptocurrencies have experienced large drawdowns in the past 7 days, the price of ALGO has hardly changed (down by just 0.2%).

Get exposure to Algorand (ALGO) via Rollbit's Crypto Portfolio feature!

Speculation Mounts Over Polygon’s Major Announcement at the Up and Coming zk Summit

Due to take place on December 9th, we can expect a major announcement from Polygon network at Polygon’s zk day. The event will discuss the future of zero knowledge proofs in advancing the cryptocurrency sector.

Polygon's zk day will take place from on December 9th (16:00-19:30 UTC) and you can watch the event by registering here. The team teased a major announcement to be revealed during the summit, which could impact the markets for the native MATIC token.

Trade MATIC with up to x400 leverage on Rollbit or gain exposure to Polygon's native cryptocurrency with our Crypto Portfolio feature!

Three Arrows Leads $4.3 Million Round for Solana-Based Metaverse Project Solice

Solice, a cross-platform PC and virtual reality (VR) game built in the mold of Decentraland and The Sandbox, announced $4.3 million in funding on December 2nd. The round was led by Three Arrows Capital, DeFiance Capital and Animoca Brands, with other firms taking part.

Solice founder Christian Zhang said to CoinDesk that the game will feature a native currency, as well as game assets backed by non-fungible tokens. The assets will also have in-game financialisation elements.

Zhang stated, “Landowners are able to stake parcels of land for an APY, but while staking there is a small chance to obtain rare loot. Users will have to complete a quest to upgrade the loot into a unique NFT."

Other News

  • Crypto asset management firm Grayscale has launched a Solana trust product for accredited investors via private placement, offering exposure to SOL,
  • Ethereum's Beacon Chain (the first step in the move to ETH 2.0 and Proof of Stake) had its first birthday on December 1st, with over 8 million ETH staked and more than 250,000 validators spun up since then,
  • Diplo, DJ Khaled, Future and Martin Garrix snap up NFTs through MoonPay’s concierge service,
  • US Congress to hold a hearing with execs from Coinbase, FTX, Paxos and others on December 8th,
  • This week's staking rewards for Rollbit's NFT marketplace can be claimed on Thursday, December 9th at 19:00 UTC!

Market Analysis 📈📉

7-day Price Change

Data as of December 7th, 11:30 UTC

Let's look at the Bitcoin chart.

The weekly chart above shows the massive decline, with the price of Bitcoin closing below the middle Bollinger band. The middle band, currently at $52,470, will be an important level going forward, with a bullish outlook favoured if there's a weekly close above $52,470.

The daily chart above shows that the price has bounced from the lower Bollinger band and we'd want to see a daily close above December 4th's high ($53,876) to see an attempt at the middle band at $55,609. A return below $49,241 (December 4th's closing price) would point to a bearish outlook.

Ethereum fared the recent market crash better than Bitcoin, as shown by the weekly chart below. ETH tapped the middle Bollinger band before reversing losses and if the price continues to perform well, we'll get a Bullish Engulfing candlestick pattern on this week's close (as long as the price remains above $4,298.38).

If the Bullish Engulfing pattern forms on the weekly chart, then we could see a rise to the $5,000 psychological level, which aligns with the upper Bollinger band on the weekly timeframe.

The daily chart for ETH is shown below with support seen in the middle Bollinger band ($4,306) while resistance is provided by the upper band ($4,671). Compared to Bitcoin, Ethereum has already recovered all the losses seen on December 4th, pointing to a stronger outlook relative to other cryptocurrencies.

Apart from LUNA, MATIC is the only other cryptocurrency in the top 20 that's in the green over the past 7 days. The weekly chart for MATIC below shows that a break of the all-time high of $2.825 is close and a break of this important level could see Polygon's native token go as high as $4.389 over the long term (according to Fibonacci analysis).

Looking at the daily chart below, the price of MATIC is near the upper Bollinger band, suggesting it's a risky buy at the moment. Support is seen near the $2 psychological level in the event of a downturn. However, it seems as if the price is more likely to continue running up the upper Bollinger band, like we saw in the second half of October (when the price of MATIC rose from $1.594 to highs above $2.20).

It's worth monitoring MATIC for a break of its all-time high, as we could see increased interest in the asset as the result of an official announcement due on December 9th's zk day.

Have a great week!

-The Rollbit team