Weekly Outlook, Dec. 18 – 24, 2021: Top Economic Events to Watch This Week - Forex News by FX Leaders
Investors are diversifying portfolios with other cryptos

Weekly Outlook, Dec. 18 – 24, 2021: Top Economic Events to Watch This Week

Posted Saturday, December 25, 2021 by
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.

 

BTC/USD

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)

During Friday’s Asian trading session, the Ethereum price was well supported. Ethereum has picked up bids and is already above the $4,000 mark against the US Dollar. The price of Ethereum is showing further signs of improvement, and it may rise above $4,200 in the near future. ETH has built a base above the $3,900 level, signaling the start of a new uptrend. This crypto has managed to break through the $4,000 resistance zone and the 100-hourly simple moving average. It s currently trading over $4,000 and the 100-hourly simple moving average. Near the $4,120 mark, there is immediate upside resistance, and the next big resistance can be found at around $4,150. A clear upside break above $4,150 might propel the price much higher in the short term, and the buyers’ next target might be $4,200, from where the price could surge to $4,250. Any further rises might push the price up to $4,320. The ETH/USD is trading at the 4,083.23 level, and consolidating in a range between 4,068.58 and 4,128.07.
 

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)

The LTC/USD coin extended its overnight bullish streak and remained well-bid near the 165.000 mark. The LTC/USD coin has managed to recover its previous day’s losses and drew some fresh heavy bids above the 166.700 level. At the time of writing, LTC/USD is trading at $164.100, up 4.27% for the day. The coin’s price is succeeded in breaking all the channel’s boundaries, signaling a heavy upward trend ahead. LTC’s upward movements could be due to the strong performance of the crypto market, which has helped all crypto coins, including LTC.
 

LTC/USD
The cryptocurrency market has been flashing green and has had a solid week, as investor sentiment around the altcoin remains favorable, with most expecting the cryptocurrency to do well in the future years. The Bitcoin positive price movement helped to confirm this. Meanwhile, the bearish bias in the US dollar, backed by multiple factors, also played a major role in underpinning the LTC/USD coin.

Weekly Cryptocurrency Summary – Ripple (XRP/USD)

Despite the Ripple having achieved its strongest year ever, the XRP/USD has been flashing red, dropping by 2.76% in the last 24 hours. In the meantime, the positive mood in the crypto market also failed to push Ripple prices higher. Today’s XRP price is $0.968002 USD, with $3,613,271,637 USD in 24-hour trading volume. In the last 24 hours, XRP has dropped by 2.76 percent, with a live market cap of $46,014,908,933 USD. The total amount of XRP coins is 100,000,000,000, including a circulating supply of 47,535,964,473 coins. This week, XRP has been in the news, with strong support coming from expectations of a positive result in the SEC case. The rising degree of investor interest has been boosted by a lawsuit launched against the SEC on behalf of Ripple Lab and XRP.
 

XRP/USD
According to CEO Brad Garlinghouse, Ripple has had its “best year ever”, despite the SEC’s lawsuit against XRP. In a series of tweets on Wednesday, Ripple CEO Brad Garlinghouse discussed his company’s accomplishments and the regulation of cryptocurrencies. He claimed that, despite the XRP lawsuit, Ripple had its “best year ever.” This positive news might help to limit deeper losses in the Ripple prices .

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:

 

DOGE/USD
– a new currency called LibDogecoin
– 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.

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