Daily Market Update - December 7, 2020- All Indices Down, Bitcoin Up

On days like today when all major indices are trading down, and Bitcoin is trading up we can reasonably assume Bitcoin's safe haven asset status moving into 2021.

The crypto market cap increased by $22.75B over the weekend from $542B to $564B to help kick start our week. Bitcoin rose by 6.67% in the week ending 6th December. Reversing a 1.05% loss from the previous week, Bitcoin ended the week at $19,410.0. It was a bullish start to the week. Bitcoin rallied from a Monday intraweek low $18,196.0 to a Tuesday intraweek high and a new swing hi $19,956.00 before hitting reverse. The rally saw Bitcoin break through the first major resistance level at $19,268 and the second major resistance level at $19,884. A pullback on Tuesday saw Bitcoin fall back through the resistance level to a low $18,279.0 before finding support. Mid-week, Bitcoin broke back through the first major resistance level at $19,268 to revisit $19,600 levels before easing back. 5 days in the green that included an 8.25% rally on Monday and a bullish weekend delivered the upside for the week. For the week ahead Bitcoin would need to avoid a fall through $19,187 pivot to support a run the first major resistance level at $20,179. Support from the broader market would be needed for Bitcoin to break out from last week’s high $19,956. Barring an extended crypto rally, the first major resistance level would likely cap any upside. In the event of another breakout, Bitcoin could test resistance at $21,000 before any pullback. The second major resistance level sits at $20,947. Failure to avoid a fall through the $19,187 pivot would bring the first major support level at $18,419 into play. Barring an extended sell-off, however, Bitcoin should steer clear of sub-$17,500 support levels. The second major support level sits at $17,427.

Bitcoin miners generated an estimated $522 million in revenue in November, up 48% from October, according to on-chain data from Coin Metrics, analyzed by CoinDesk. Monthly aggregate revenue in November reached its highest level since September 2019, given they sell all coins upon mining.

$ETH trading within the $561 to $633 range throughout last week. Weekend gains amounted to an increase of 5% (or up $32.3) with the target to maintain above $600 levels as most of the top exchanges offered support for ETH 2.0. Hourly charts showing $ETH trading at neutral RSI zones with Bollinger bands narrowing between $586 and $601 for technical reference. ETHBTC maintained above 0.03 levels after reaching a peak of 0.033 when $ETH climbed to $618, while $BTC dropped 400 USD to $18,670.

Alts and DeFi watch:

  • Defi TVL started the week at $14.77B, rejecting $15B levels after surging past its $12.9B from late November

  • Top ten large cap coins improved between +0.8% to 1% overnight as we start the second week of December and looking for some momentum

  • $XRP jumped 7% to 0.62 with former GS Hedge fund chief Raoul Pal announcing his interest in the project after investing 98% of his liquid net assets into $BTC

  • $AAVE dropped 4%, but remains up 30% over the past seven days of trading (at 88). It was the largest noticeable drop amongst the DeFi sector

  • $YFI is still up 16% over the past week at 28,470 with YFIBTC currently trading at 1.47 after seeing mid November highs of 1.65.

News that caught our eye:

  • JD .com (one of China’s largest online retailers) announced it will pilot a digital yuan lottery campaign in yet another government initiated trial

  • Microstrategy has added yet another $ 50M to its $BTC war chest. Its stock has risen 170% since it first announced allocations to Bitcoin back in July

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