Inflation falling: Will Crypto continue to push up?

14.11.2023

Dear traders,

With US inflation decreasing and the dollar weakening, will this drive the Crypto market up to the next range and break through resistance?

Jake
TOP Trader

BTC is consolidating below $37,000, creating a bearish structure with a significant possibility of a pushback to the $35,000 support zone for a retest. A significant short entry zone is at $38,000, a good position to consider for your setups.

ETH has been rejected from the $2,100 resistance and is pulling back from $2,000, which is acting as support. It is still possible for a larger pullback and retest of a strong push.

XRP is losing momentum and pushing back into the $0.62 channel. It needs a strong push with buying volume to drive the price up. Still, $0.67 shows strong resistance, and a break above will indicate bullish continuation.

LINK is retesting $15 as support after a significant breakout and needs to hold it on the daily chart for bullish continuation.

SOL hit strong resistance at $57 and is now consolidating below it. It is still in a strong bullish trend.

EOS broke above the $0.7 resistance and is now preparing for a bigger push up to $0.79 if it manages to hold in the $0.7 trading zone.

LTC has broken through a strong resistance at $70 and is now ready for a bigger price push, returning to a bullish channel.

DXY after falling due to the decline in US inflation, may find possible support at 104.3.

Crypto/stock daily news:

BIG TRENDS HAPPENING RIGHT NOW

This weekend, I faced a significant decision:

a) Catch up on household errands before my wife returned to town, or… b) Scroll through all the crypto articles, reports, and tweets so you won’t have to.

Then, I remembered my commitment to you, the Traders.

So, I went with the obvious choice: B.

1/ DIGITAL ASSETS SURPASS $1B+ IN INFLOWS THIS YEAR

The results from CoinShare’s latest Digital Asset Fund Flows report are in. There was $293M in total inflows last week, bringing the total net inflows to $1B+ for the year.

Here are a few other highlights from the report:

Inflows are on a 7-week streak. There have been more inflows during the last 7 weeks than all of last year.
Bitcoin (Exchange Traded Product) ETP trading volumes made up ~19.5% of total Bitcoin trading volumes. CoinShares suggests this is because ETP investors are participating much more in this rally compared to 2020/2021.
ETH saw $49M in total inflows last week. It was the largest week of inflows since August 2022.
Solana rallies with another $12.4M in inflows. SOL is the 2nd most popular asset amongst crypto ETPs and has seen $120M+ in inflows this year.

Overall, total assets under management (AUM) are up 9.6% over the last week and up 99% since the beginning of the year. (!!)

2/ NFT BLUE CHIPS ARE UP 71% OVER THE LAST MONTH

The hype around NFTs has quieted down since 2021. Headlines have gone from…

“NFTs are worth millions!” → “NFTs are worth less than a bag of Doritos (not the family size).”

Well, turns out crypto’s favorite JPEGs have been rallying recently:

Daily NFT volume just hit a 3-month high.
CryptoPunks NFTs are being bought for $1M+.
EtherRock NFTs (aka pictures of pet rocks) are being bought for $100K+.

Plus, the floor prices for the Top 10 NFT projects are up 71% over the last month.

Ladies & Gentlemen, it’s the Return of the Expensive JPEGs.

3/ GAS FEES ARE UP BIG

Alright, I’ve got some news, both good and bad…

The Good News: Everything in the crypto space is on the rise—prices, daily transactions, user numbers, morale—you name it.

The Bad News: Unfortunately, this includes gas fees. Now, let me break it down for you. Every time you make a transaction on a blockchain, let’s say Ethereum, you’ve got to pay a fee, fondly known as “gas.”

And with the recent rally, gas prices have shot up. Take a look at Ethereum’s gas prices from last week; they’re looking more daunting than California’s…

Side Note: With Gas Prices Spiking, We Predict a Surge in Investors Utilizing Layer 2 Solutions—Such as Optimism, Arbitrum, etc.—for More Affordable and Rapid Transactions in the Upcoming Bull Run.