WTF on Friday Markets, 01.12

Strong monthly close

Disclaimer: Technical analysis is a way of analyzing the financial market based on statistical patterns. Drawing lines on the chart itself does not predict price movements, but only helps the analyst to visualize the results of different types of analysis (macroeconomical, fundamental, technical, etc.). The analysis is not a financial recommendation, although it can be used to make trading decisions. Current analysis may become irrelevant if market conditions change dramatically. Good analysis does not always lead to good trading decisions, and vice versa.

Macro

The trend is still holding, while ETF deadlines are getting closer. Cryptocurrency growth is fueled by positivity in TradFi, where market participants expect interest rate cuts to begin in the first half of 2024.

BTC

The monthly candle closed bullishly neutral. Bullishly because it closed above $37.2k; neutral because it is not much higher. The course of events will depend on market sentiment, but the current situation can be characterized as bullish until proven otherwise. Proof otherwise could be next month’s close below $32k, which seems almost impossible due to the approaching deadline for the ETF, whose approval is not in doubt.

ETH

$ETH price action just keeps getting better and better. The month closed strongly above resistance at $1930. We can expect continued capital rotation from $BTC to $ETH as the Bitcoin ETF narrative is not long. It would be nice to get a dip around $1950–$2000.

SOL

Solana still has one of the strongest charts. The growth was not speculative and didn’t deflate; it was fueled by the revival of the entire ecosystem and the birth of trends among internal tokens. There is still room for a move up to the nearest trading zone.