Market Outlook #248 (3rd December 2023)
Hello, and welcome to the 248th installment of my Market Outlook. In this week’s post, I will be covering Bitcoin, Ethereum, Solana, Polygon, Oasis Network, Amp, and Unibot. As ever, if you have any requests for next week, send them across.
Market Cap: $771.620bn
Thoughts: If we begin by looking at BTC/USD on the weekly timeframe, we can see that price is set to close the week at fresh yearly highs, as well as highs of the week, on similar volume to the prior three weeks, having rallied off the open at $37.4k into support turned resistance here at $39.6k. This continues to look promising for higher prices, to be honest – momentum still looks strong and we’ve just closed through multi-week resistance. Looking at next week, I would expect this squeeze to continue into $42k, where there is likely to be much more resistance given the confluence. If we do see price push up into that level, I will be looking to hedge some spot exposure and look to remove the hedge when we accept above that level. For downside risk, any wick up above $39.6k towards $42k and subsequent close back inside $39.6k would begin to look like a local top to me, from which point we can start looking for shorts potentially back as far as $33k to clear out all of these recent untapped lows. This is obviously assuming we do get that top formation in the next week or two below $42k. Invalidation on any short exposure is obviously acceptance above $42k, but until we look like a top has formed I would not rush to fade the first weekly close through multi-week consolidation.