The coming week could be more important for the market than it first appears. The week after Thanksgiving is rarely particularly positive, but the markets are at very high levels. This could lead to temporary profit-taking and therefore slight setbacks. If the market shows positivity, further highs could be established. The market will therefore go through the week with a certain amount of tension.
Thought of the week
Digital Asset News
The development of Bitcoin’s market share is an important signal for altcoin investors, which could once again lead to smaller cryptocurrencies recovering in December and attracting more investment in the run-up to January 20.
The so-called Bitcoin dominance, which measures the ratio of Bitcoin to the total value of the crypto market, has recently fallen to 56.1%, below the two-year support line, suggesting that the market is now “officially back in alt-season”. In digital asset jargon, “altseason”, short for altcoin season, refers to the collective rally of cryptocurrencies besides BTC that are benefiting from Bitcoin’s waning dominance. Accordingly, the waning Bitcoin dominance suggests that investors are taking profits from their BTC positions and rotating some of those funds into altcoins. One of the key catalysts comes on January 20, when SEC chief Gary Gensler steps down as head of the SEC – which could signal the acceptance of more crypto-based ETFs and better regulation.
The New York Department of Financial Services (NYDFS) is expected to approve Ripple Labs’ RLUSD stablecoin – an overcollateralized stablecoin pegged to the US dollar – in the coming days, inside sources told Fox Business.
According to a November 29 Fox Business report, approval of the U.S. dollar-pegged stablecoin by the New York Financial Industry Regulatory Authority could enable its launch as early as December 4. In August, Ripple Labs made the following statement about the future of its ecosystem: “There is a clear demand for stablecoins that offer trust, stability and value. Once RLUSD is available, Ripple will use both RLUSD and XRP in its cross-border payments services to serve its global customers and dramatically improve their experience.” ‘We continue to see demand shifting higher, which is a very positive market signal,’ he said. He continues: ‘There is a lot of spot supply in the USD 100,000 range. The price trend is currently reducing this supply and this could be followed by a strong breakout.’ Meanwhile, analysts at CryptoQuant are noticing a cautious trend with regard to on-chain data. After the total market capitalisation of cryptocurrencies reached a new record high at the beginning of the month, trading volumes are now falling again. The most recent increase in trading volume on Binance came on 12 November and coincided with the new record high in total market capitalisation, ‘However, trading volume has fallen by just under half since then, while market capitalisation remains in price discovery mode,’ He adds: ‘This decline in trading volume could indicate that the market is taking a breather and that investors are being cautious again for the time being.
Spot Ethereum exchange-traded funds (ETFs) in the United States set a new record for daily capital inflows on November 29. According to Farside, USD 332.9 million flowed into the nine spot ETFs for Ethereum on November 29, surpassing the previous record for daily inflows – which stood at USD 295.5 million and was set on November 11 – by USD 37.4 million.
BlackRock, the world’s largest asset manager, was responsible for USD 250.4 million of the total inflows on November 29 alone. ETF Store President Nate Geraci pointed out in a Nov. 29 X-Post that BlackRock’s iShares Ethereum Trust (ETHA) has now seen over $2 billion in inflows since the investment product was launched on July 23. Several market observers also pointed out that the inflows into the Ethereum ETFs were higher than the inflows into the Bitcoin ETFs on the same day, namely USD 320 million.
The founder of Hartmann Capital, Felix Hartmann, believes that this is the first signal that Wall Street is now also joining in the rotation of capital out of Bitcoin and into altcoins. “The capital flows of ETH ETFs have surpassed BTC ETFs for the first time,” emphasized crypto trader Ethereum Vibin in this context.
Digital Asset Market
Market report including trading idea
The majority of digital assets experienced slight setbacks last week, but these can still be regarded as very healthy and supportive of the market. Bitcoin is consolidating above half of the $90,000 mark and is forming initial support zones, which could serve as buyback points in the near future. Altcoins, on the other hand, have seen major upswings and are currently establishing a small “rally” that is independent of Bitcoin. The medium-term outlook remains positive, especially for altcoins, but the trading week after Thanksgiving is rarely particularly positive in the US, which could lead to further consolidation. If the volume of altcoins continues to be above average, there could be further surprising upswings, but these could be accompanied by high volatility and active risk management is essential. Whether these price levels can be maintained in the long term depends on how consolidations and profit-taking are responded to.
Chart technology
From a chart perspective, Bitcoin is well above half of the support zones formed at ~$90,000 and has already been able to establish initial support zones in a narrower trend channel. Bitcoin is slowly approaching a “make-or-break” situation in relation to the $100,000 mark. The majority of market participants are already lurking and hoping for a setback, as evidenced by volume shifts from Bitcoin to altcoins. However, there is still hardly any major profit-taking, which means that Bitcoin can maintain this price level.
If only minor profit-taking follows again, there could be further positivity, although the conditions this week are not the best.
The next price targets in the event of a positive development: ~$98,500, ~$101,000 ~$105,000
The next price targets in the event of a negative development: ~$92,000, ~$90,500 ~$86,000
Trading idea
Altcoins have seen positive price movements over the past week (especially mid-caps), while Bitcoin and Solana have not. Any upswings would likely be strong in relation to other altcoins.
Weekly overview
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