Weekly Outlook, Dec. 18 – 24, 2021: Top Economic Events to Watch This Week
Arslan Butt • 5 min read
Weekly Cryptocurrency Summary – Bitcoin (BTC/USD)
The BTC/USD coin extended its overnight recovery rally, drawing some heavy bids above 51,500. Bitcoin has started a new uptrend against the US Dollar, having broken through the $50,000 level. BTC is showing signs of improvement, and it could rise to $52,000 in the near future.
Bitcoin is currently consolidating gains, after reaching a high of $51,500. It’s far above the 23.6 percent Fib retracement level of the latest rise from the downswing to $48,105, to the high of $51,500. It’s also trading above $50,000 and the hourly simple moving average of 100. There is immediate upside resistance near the $51,500 mark, and $52,000 could be the next major barrier.
A strong break above the $52,000 resistance level might push the price up. The next significant resistance barrier for the bulls could be around $53,200. On the downside, if Bitcoin fails to break through the $51,500 resistance zone, it may begin a downtrend. There is immediate support near the $50,700 level. The BTC/USD coin is trading at the 50,958.6 level and consolidating in the range between 50,657.1 and 51,521.4. However, sources imply that the supply of illiquid Bitcoin has increased by over 371,000 BTC since May 2021, which could cause an increasing trend in the value of BTC. According to the most recent report, the Illiquid supply of BTC has risen to multi-year highs, with approximately 371,000 Bitcoin added since the May slowdown.
Despite recent price drops caused by extended liquidations and market sell-offs, the illiquid supply continues to rise, indicating that more long-term holders have added Bitcoin in recent months. In other news, Microstrategy’s CEO predicts that Bitcoin will reach $6 million in value, claiming it is “unstoppable” and will eventually replace gold. The executive owns 17,732 Bitcoins personally, while his company has 122,478 Bitcoins. The BTC/USD prices have also benefited from this news.
Furthermore, BTC’s upward momentum has also been aided by the risk-on mood in the crypto market, which several variables have bolstered. Meanwhile, one of the critical variables that kept the BTC/USD prices higher was broad-based weakness of the US dollar, triggered by a risk-on market mood. In Asia, the US dollar was down on Friday morning, with investors shifting to riskier assets, as concerns about the aggressiveness of the Omicron COVID-19 variant faded.
On Thursday, the US Food and Drug Administration approved Merck & Co. Inc.’s (NYSE:MRK) COVID-19 tablet, Molnupiravir, for emergency use, which also pleased investors. Furthermore, a recent study in the United Kingdom found that Omicron infections are less likely to result in hospitalization.
Weekly Cryptocurrency Summary – Ethereum (ETH/USD)
The risk-on sentiment in the crypto market could be linked to the buying bias surrounding Ethereum, which is the second-largest cryptocurrency in the world. Bitcoin has begun a new rally against the US Dollar, breaking past the $50,000 level, indicating a risk-on market sentiment. As we are all well aware, Ethereum had a strong year in 2021, and the digital asset is expected to end the year on a less bullish tone.
Overall, investor attitude about the altcoin remains favorable, as most believe the cryptocurrency will do well in future years. One person who believes in Ethereum, Armando Aguilar, a crypto research analyst at Fundstrat, expects Ethereum to double in price next year.
Moreover, the recent greenback selling bias is also helping the ETH/USD coin to stay bid. The US dollar fell in Asia on Friday morning, as investors shifted their focus to riskier assets, due to easing of the fears about the aggressiveness of the Omicron COVID-19 variant. A new COVID-19 medicine from Merck & Co. Inc. (NYSE:MRK), Molnupiravir, was approved for emergency use by the US Food and Drug Administration on Thursday, giving investors more confidence. The value of the dollar against a basket of other currencies has fallen by 0.02 percent to 96.035. (Figures released at 3:52 AM GMT).
Weekly Cryptocurrency Summary – Litecoin (LTC/USD)
Weekly Cryptocurrency Summary – Ripple (XRP/USD)
Weekly Cryptocurrency Summary – DOGECOIN (DOGE/USD)
Since the start of the day, the DOGE/USD currency pair has been flashing green, and remaining well bid around above the 0.18500 level. The current Dogecoin price is $0.181222, with a trading volume of $1,300,382,187 in the last 24 hours. In the previous 24 hours, Dogecoin has gained 1.57 percent, with a live market cap of $24,040,404,972, and it has a circulating supply of 132,657, 224,068 DOGE coins, with no maximum supply. This could be linked to the optimistic sentiment in the cryptocurrency market, which has aided practically all cryptocurrencies, including Dogecoin. Meanwhile, the steep fall of the US dollar is considered a crucial cause for the upward movement in DOGE/USD.
On the other hand, the Proof-of-Work (PoW) meme currency, Dogecoin (DOGE), has announced its ambition to switch to Proof-of-Stake (PoS). The Dogecoin Foundation has revealed that they are collaborating with Vitalik Buterin, the founder of Ethereum, to build a unique community staking proposal, based on PoS. The PoS movement includes three primary projects:
– a liberated version of the meme money
– a new PoS wallet called Gigawalle
Integrators have already agreed to help the developers with early testing. “The Libdogecoin and GigaWallet projects will begin to take shape over the coming few months,” according to keywords, “and we have several early integrators who are interested in putting them to use in their projects.” These early efforts are focused on creating a strong foundation, while future projects will focus on increasing transaction throughput and scale.” The value of DOGE/USD has risen significantly, due to the favorable developments surrounding Dogecoin.
Furthermore, Elon Musk, the eccentric billionaire and Tesla CEO, is well-known for his fondness of Dogecoin. In a recent tweet, he detailed why he favors Dogecoin over Ethereum or Bitcoin. According to Musk, Bitcoin is a crypto coin that provides people who have recently become wealthy with power. Earlier this year, the Tesla CEO requested that the DOGE developers update the meme-based money, so that it can compete with the behemoths of the cryptocurrency industry, Bitcoin (BTC) and Ether (ETH). Elon Musk also addressed the web3 controversy and explained why he supports DOGE. This development has had no significant impact on the Doge thus far.