EQUOS — Morning Update — December 10th
Yesterday was a very interesting session for the crypto space. No, we did not breach new highs, test support levels or move dramatically one way or the other. We did have a scare and a bounce up.
While traditional markets turned risk-off (S&P down 1%, Nasdaq down 2%, gold down 1.7%), one could’ve assumed some contagion to affect cryptocurrencies.
With the session before last taking BTC down 4.5% and, in this last session, intraday moves of -5%, it definitely felt that way. At the close, the candle is green, though, with a long bottom wick, typically a bullish sign as it means buyers went a long way to retrace and revert the selling pressure. Are we out of the woods, yet?
It’s worth noting that we’re still out of the upward channel, and closed below the 20-day MA. So, the rest of the week will be critical and fascinating.
The crypto space has had a lot of good news to support price action, by the way:
- Fidelity Digital is reported to accept bitcoin collateral for cash loans
- JP Morgan says gold will suffer for years because of Bitcoin
- MicroStrategy issued further statements about a $550 million offering of convertible notes (to be then poured into BTC)
- ING bank discusses a crypto custody project at a Singapore fintech event.
…very hard to continue selling when corporates and banks keep piling in.
Away from BTC and onto alts, well, it’s the usual dynamic -same picture but at varying intensity. Everything is mostly in the green and either underperforming or outperforming BTC. ETH closes 3.5% up after an intraday move of 8% from top to bottom. LINK is up 4%. ADA is up 5.5%. XLM is up 13%. On the session, the BTC dominance is down by about half a percent.