The narrative shifted this week as the market took a slight tumble with BTC dropping 5% following a series of news events, including the recent Bankruptcy of Genesis. Read more here!
Despite the pullback the Altcoin market has remained strong with a few performers showing double digit returns over the past 7 days.
Many Metaverse tokens have performed well this week including $MANA which is currently up nearly 5%. The token saw a huge increase in volume, as tech giant Apple, announced they will be working on cheaper AR/VR headsets.
$SHIB was another strong performer this week as price rallied over 20%. The rally comes after they enter the final stage for the Beta launch of Shibarium, their native layer-2 scaling solution.
Overall across the major coins, we have seen increased selling flows this week as speculators look to secure any short term gains in this latest rally.
Trade our top 5 weekly coins of interest here!
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We break down the convert portal transactions to gauge where the market is each week. We notice a pattern with the top 3 consisting of; stable coin swaps, crypto to stablecoin and stablecoin to crypto. When the market is quiet, seeing extended movements stablecoin swaps usually top the list with users transacting between BUSD and USDT with tight spreads. On the flipside when the market has seen a period of expansion (up or down) we will usually see crypto to stablecoin or stablecoin to crypto transactions top the list as users will enter and exit positions.
Convert Portal Volume Breakdown
With the market pulling back this week, stablecoin swaps decreased 4.5% coming in with a value of 33.06%. Interestingly, it still topped the list this week, however we have seen an increase in all other transaction types.
2nd on the list is Crypto to Stablecoin transactions increasing 3.44%. Again with the market seeing a slight retracement is it expected to see these type of transactions increase alongside overall selling volume.
Again, stablecoin to crypto transactions placed third this week with a value of 20% an increase of 3.56%. It is not surprising that after these large movements, speculators look to pile in as they expect continued momentum chasing these movements to the upside!
Overall market technicals
BTC
Taking a glance at the charts, BTC is currently trading around $21,000 and has formed a weekly range in which it is sitting at the midrange.
Last week we outlined a potential target sitting at $21,500 which was traded to on Wednesday before price made a slight retracement to the downside.
As it stands there are two potential targets that are in play. The first being to the upside, if bullish momentum can continue we would need to see a strong breakthrough of the current range. The resistance would need to flip as support giving a clear trajectory to September's high sitting at $22,800.
Alternatively, if the range fails to hold we would likely see a sharp decline with the previous consolidation zone (around $19k) to act as a support.
SHIB
SHIB started the year off with a bang as it followed the rest of the market's footsteps.
Since then the coin has been in a solid uptrend showing no signs of slowing, as the project is set to launch their layer 2 scaling solution!
Looking at the chart, SHIB has been respecting the trend extremely well as buyers stepped in driving price further to the upside.
As always the altcoin market will be determined by BTC, as movements are closely correlated!
Macro at a glance
Earlier this week the BoJ left YCC policy unchanged, this caused an initial drop in the Japanese Yen whilst native stocks sharply rallied.
The Month-on-month US PPI and Retail sales reading for December were posted on Wednesday, -0.5% and -1.1%, respectively. Both readings are worse than estimated, with the S&P500 posting its worst day since 2023. The loss was extended through to Thursday as worries about a higher probability of recession.
US initial job claim on Thursday came in at 190k, (vs 214K estimation, 205k previous), the surprising decrease was mainly contributed by the number reported from the New York state.
China reported a 2.9% GDP growth in Q4, which dropped less than expected, and more economic stimulus in 2023 is expected.
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