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ChatGPT Neutralized Negative Press Around FTX as LINK and APE Rolled Out Staking and Gnosis Merged to PoS

AI, Apple, and the Twitter Files managed to diffuse some of the media attention away from FTX as crypto markets continued a slow slide into deeper bear territory. But NFTs made headlines and big Web3 names like Apecoin and Uniswap launched new use cases.

At a glance...




  • OpenAI tool launch lightened the mood
  • Apple clashed with Coinbase
  • Reddit Avatars set a record
  • The 2nd Layer-1 Merge went live


Top Market Trends

Movers and Shakers

Top 7-day Gainers:

  1. FXS +25.3%
  2. XRD +22.3%
  3. AXS +16.8%
  4. TRUST +15.4%
  5. EOS +11.6%

Top 7-day Losers:

  1. 1inch -13.8%
  2. BTSE -10.4%
  3. LINK -9.7%
  4. XCN -9.2%
  5. TKX -9.1%

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Technical Summary

Bitcoin Pulse
Bitcoin (BTC) continued to experience heavy bearish sentiment. Meanwhile, Glassnode data noted that Bitcoin leaving exchanges (likely for cold storage) has been a dominant trend since November. It could be explained as a reaction to the fall of FTX, or it could also signal an accumulation phase.

  • BTC revisiting the month-long range lows might present an opportunity for traders.
  • Social media displayed a noted slant towards Bitcoin hitting its bottom this week, but many still feel more downward action is heading our way.
  • Bitcoin price saw a rocky week, but remained stable ending out above $17,100, up 1.2%.

BTC - Low Timeframe

After forming the week's high on Monday, when price mitigated the bearish order block and price targets were lower, we now wait to see if a bearish trend establishes itself or if we continue to make new highs.

BTC-MICRO--3-

We saw a clearing out of sell-side engineered liquidity in the $16,900-$16,800 region after price moved bearish, tapping into the 1H fair value gap.

This resulted in a sideways accumulation on Wednesday and Thursday before price impulsively took out:

  1. 1H buy-side liquidity
  2. Mitigation of the extreme bearish order block of the current bearish move
  3. Closed the fair value gaps
  4. Formed a short-term stop hunt today

Collectively, these levels act as an area of value where shorts could start from targeting at minimum the $16,900 level, where we have a cluster of confluences:

  1. Bullish order block
  2. Closure of inefficient price action (Fair value gap)
  3. Taking of 1H sell-side liquidity

Alternatively, if the bulls are still in control, the previous retracement was just that and the bull trend should continue targeting our bearish order block at $18,000.

BTC - Macro View

We saw a continuation of last week's perspectives on BTC/USD; the price continued to correct sideways, locked in its lower time frame range between $16,700-$17,400.

BTC-MACRO--3-

As price continues to accumulate, we anticipate aggressive expansion volatility to enter the market soon. Given that the Christmas period is around the corner, we look to see if this will be the catalyst for expansion or further low volatility.

Our previous analysis still stands. We would look for price to do one of three scenarios:

  1. Retrace into the $16,000 price levels acting as support and value area for bulls to long.
  2. A retrace into the $16,000 price level which fails and we then target the $15,400 low.
  3. The price continues to rise from current levels and we wait to see if the 50 EMA acts as resistance for shorts.

Altcoins on the Move
Staking arrived this week for users of two popular altcoins, LINK and APE. Ethereum Founder Vitalik Buterin was an active voice; he was spotted in crypto twitter discussing real world use cases for crypto and DAO governance systems, and published “What in the Ethereum Network Excites Me” on his blog.

  • Chainlink’s oracle network launched LINK staking so token holders can earn rewards while helping to secure ETH/USD data feeds. The initial staking pool is capped at 25 million LINK, about 2.5% of the total supply.
  • Over $30 million in APE tokens was deposited into ApeCoin’s new staking contract just one day after it was launched by the Ape Foundation.
  • Ethereum developers will prioritize Beacon Chain withdrawals over The Surge (The Merge, part II) in the upcoming Shanghai upgrade. This sets up the first window for withdrawals of staked Ethereum, targeted for March of 2023.

Ethereum Macro

Similarly to BTC/USD, we saw continued accumulative price action take place as ETH/USD’s volatility was further suppressed.

ETH-MACRO--2-

As we can see, price has been continually finding resistance at the 50 EMA, however, price could very easily have extracted all the orders and liquidity generated from interacting with the 50 EMA, and a break and retest for a bullish continuation could be in the cards.

As with BTC/USD, we expect one of three scenarios:

  1. Price continues to find resistance at the 50 EMA leading to a retracement into the $1200 support region.
  2. Price breaks through the 50 EMA targeting the $1500 price level as resistance.
  3. Price fails to find support at $1200 and targets the $1100 liquidity lows.

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Quadency is a cryptocurrency portfolio management platform that aggregates digital asset exchanges into one easy-to-use interface for traders and investors of all skill levels. Users access simplified automated bot strategies and a 360 portfolio view with a free account.

Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.