Recap of Last Week in Cryptocurrency: Bitcoin Surges Over $106K, Ethereum Bounces Back, and TON Makes Global Moves
In Brief
Bitcoin surged past the $106,000 mark, Ethereum rebounded and reached $4,500, while TON made significant international strides through strategic investments and deeper integration with Telegram, marking an eventful week in the crypto landscape.
Bitcoin News & Macro
Let’s take a step back and examine the noteworthy developments in the cryptocurrency market from the previous week. Bitcoin has been on an impressive upward trajectory, breaking through the significant $100,000 threshold to reach a remarkable $106,000. The renewed demand for spot trading surged as murmurs of a potential interest rate cut by the Federal Reserve in December added additional excitement. However, what truly ignited discussions in the market was the speculation surrounding Trump potentially advocating for Bitcoin to be recognized as a U.S. reserve asset, causing a flurry of activity on trading floors and reaffirming Bitcoin's prominence in financial debates.
Source: Michael Saylor
Without losing momentum, MicroStrategy continued its aggressive Bitcoin acquisition strategy. The firm not only bolstered its already substantial Bitcoin reserves but also gained entry into the Nasdaq 100, reinforcing its status as a leading player in the Bitcoin arena.
Source: MARA Holdings
In a similar vein, MARA jumped into the fray, investing $1.1 billion in Bitcoin and underscoring the resolve of miners and major investors to place their bets on Bitcoin being the future of finance. Institutional confidence in Bitcoin appears relentless at this point.
Of course, the week hasn’t been without its own set of challenges – a staggering $19.8 billion in options is set to expire soon, putting pressure on bullish traders.
Aggregate Bitcoin options open interest for Dec. 27. Source: Laevitas.ch
Interestingly, we’ve noticed long-term holders starting to offload significant Bitcoin amounts, raising concerns that the ongoing rally may be losing steam. Nevertheless, the market has shown resilience, with larger investors stepping in to buy positions at lower prices and maintaining upward momentum.
Despite certain fluctuations, the overall sentiment remains optimistic, with many analysts predicting that Bitcoin prices could potentially surpass $110,000 in the near future.
BTC Price Analysis
Examining the market charts, Bitcoin not only broke back above the critical $100,000 milestone this week but also surged to $106,000, fueled by solid bullish undertones.
BTC/USD 1D Chart, Coinbase. Source: TradingView
The breakout was swift and decisive, indicating that buyers are firmly in control. The critical resistance area around $98,000–$100,000 has flipped to support, signaling accumulation after each dip. Daily close rates above $100,000 narrate a compelling story; although sellers are attempting to re-enter the market, buyers consistently rise to the occasion, holding their ground with assurance. The upward 20-day EMA around $98,900 is supporting the current trend, and overall, the bullish framework appears robust and intact.
BTC/USD 4H Chart, Coinbase. Source: TradingView
In the 4-hour view, Bitcoin oscillated sideways between $94,000 and $96,000 before executing a powerful breakout above $100K. The movement was explosive, capturing the interest of momentum traders. The 50-EMA acted as a launchpad, while the RSI briefly reached overbought levels before cooling off. Though short-term resistance at $106,000 encouraged profit-taking, minor dips were quickly snapped up by enthusiastic buyers. Presently, the $100K threshold and the week’s opening price are crucial support levels. If they hold firm, it could lay the groundwork for another upward movement towards $110,000 and possibly higher. For now, bulls remain in charge, showing no inclination to relinquish control soon.
Ethereum News & Macro
Ethereum has also been experiencing substantial growth this week, bouncing back to $4,500 after dipping below the $4,000 mark briefly. The surge followed Bitcoin's impressive performance past $100,000, creating a ripple effect across the entire market and igniting interest in Ether. Institutional inflows into ETFs and increased derivatives trading indicate that major investors are betting heavily on Ethereum's potential.
Flows by assets (in millions of US dollars). Source: CoinShares
Staking has played a crucial role in Ethereum's story. Liquid restaking has surged in popularity, with total value locked skyrocketing to $17 billion this year. It’s easy to see why investors are rushing in – these staking alternatives offer enhanced utility and attractive yields.
Liquid restaking total value locked in Ethereum. Source: DefiLlama
The interest from institutional investors is also ramping up. BlackRock has recently expanded its Ether ETF holdings, signaling strong confidence in Ethereum's position as a core investment. Furthermore, with the SEC proceeding on a joint Bitcoin-Ethereum ETF proposal from Bitwise, it’s evident that Ethereum is carving out its place alongside Bitcoin in the major leagues.
Source: Bitwise
However, not all news is positive. Solana has recently gained attention by claiming the title of the preferred blockchain for new developers, a title that Ethereum has held for several years. This shift has raised fresh questions about Ethereum's competitive edge in innovation. Adding to the intrigue, a prominent Ethereum researcher, Max Resnick, has made the leap to Solana, criticizing Ethereum’s layer-2 scaling method while praising Solana’s emphasis on its foundational layers.
Solana, with significant growth driven by Asia, has managed to dethrone Ethereum as the top ecosystem for new developers in 2024. Source: Electric Capital
Even with these challenges, Ethereum remains strong – at least for the time being. With competition heating up and potential risks in the staking sector, we can expect a thrilling conclusion to the year ahead.
ETH Price Analysis
Throughout this week, Ethereum's price movements have closely mirrored those of Bitcoin. On the daily chart, Ethereum rebounded following a sharp midweek decline, bouncing off $3,700 and the 20-day EMA. Bulls decisively defended this key level, pushing ETH back toward $4,000, where it is facing persistent resistance.
ETH/USD 1D Chart, Coinbase. Source: TradingView
Currently, the price is consolidating in the formation of a possible bull flag, indicating a continuation pattern if buyers can finally breach the $4,000 mark. Daily close rates around $3,950 reveal that sellers still maintain control in this zone, but the outlook remains optimistic, with the 50-day EMA lying far below as a support level.
ETH/USD 4H Chart, Coinbase. Source: TradingView
Examining the 4-hour chart, the descent to $3,500 triggered a rapid V-shaped recovery, with buyers reclaiming the $3,800 mark along with the 50-EMA. Momentum has eased as ETH approaches the $4,000 threshold, where sellers have thwarted multiple breakout efforts. The RSI has returned to neutral territory, reflecting a tense standoff. If the bulls manage to break through the $4,000 mark, the next significant target would be $4,200, an important price point from earlier this year. At the moment, price action is stabilizing, with a breakout appearing increasingly likely.
TON News & Macro
TON has been making its own headlines recently. For starters, OKX Ventures has invested a substantial $5 million into the development of TON's blockchain.
In addition, the TON Foundation announced the establishment of its TON DLT Foundation in Abu Dhabi. This initiative aims to solidify TON’s presence in the Middle East and North Africa, areas that are rapidly embracing blockchain technology.
Additionally, the integration of TON with Telegram is becoming more seamless. The team hinted at a rollout of NFT stickers on Telegram in December, which could unlock new avenues for user interaction and value within its ecosystem.
When it comes to expansion, Kazakhstan has emerged as a focal point, with plans for new offices involving collaborations with TON, Tether, and Google. This sends a powerful message regarding TON’s ambition to secure a global presence, especially in regions that are increasingly interested in blockchain innovation.
Source: Telegram.org
As a final note, Telegram has issued a moderation report revealing that over 15 million channels have been blocked so far in 2024. This clear commitment to keeping the platform safe and reliable is crucial as TON continues to expand within Telegram’s ecosystem.
TON Price Analysis
On the daily chart, TON also experienced a downturn, falling from $6.80 earlier in the week following Bitcoin's lead. After briefly testing support around $5.20, it rebounded with the 50-day EMA hovering around $5.77 providing essential support.
TON/USD 1D Chart. Source: TradingView
The strong lower wick indicates that buyers made a hefty move, but since then, the price has stabilized between $6.20 and $6.50. Currently, the 20-day EMA is acting as resistance. Daily closes around $6.37 suggest that buyers remain steady, but the momentum feels a bit hesitant – leaning more towards cautious accumulation rather than aggressive breakout attempts.
TON/USD 4H Chart. Source: TradingView
In the 4-hour view, the rebound from the lows formed a sharp V-shape; however, momentum has faded into a more sideways movement. The 50 EMA at $6.37 has set a ceiling on the upside potential, while the RSI hovers near neutrality at 53, indicating indecision. The previous dip briefly pushed the RSI into oversold ranges, elucidating the subsequent bounce, but trading volume has since been underwhelming. The market appears stagnant, with buyers testing $6.20, but lacking robust conviction. An upward push beyond $6.50 could propel TON back toward $6.80, but a slip below $6.00 may lead to revisiting those lows around $5.20.
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