Week-over-week performance:
- BTCUSD +9.9%
- ETHUSD +8%
- SOLUSD -0.36%
- XRPUSD +14.5%
Looking ahead – Economic calendar:
- Tuesday, 17 December 2024: US Retail Sales (Nov), XRP’s RLUSD goes live, AAVE weighing a withdrawal from POL
- Wednesday, 18 December 2024: Fed rate decision and press briefing, US Housing Data
- Thursday, 19 December 2024: BoJ and BOE rate decisions, US Q3 GDP
- Friday, 20 December 2024: US Core PCE Index
Crypto Claus is Coming to Town… and He’s Bringing New All-Time Highs!
Last week, we talked about the bullish technical setup and the broader macro forces that were aligning for BTC. Fast forward, and BTC has smashed through its previous ATH, soaring just above USD 107,000. This move reinforces the sharp upward channel that emerged last week. The next key level on the topside to watch from here would be USD 110,000, marking a psychological barrier for the OG crypto and beyond this, should Santa deliver even more cheer, USD 120,000. On the downside, BTC has now several support levels with USD 100,000 now acting as key support, followed by 97,000, which marked a critical support for overleveraged longs last week.
Chart 1: BTCUSD
Elsewhere, ETH has also been riding the wave, up +8% WoW, helped by general broader risk sentiment and momentum in the crypto space. That being said, we have not been able to make a convincing breakthrough beyond the USD 4,000 barrier amid some selling pressure emerging around this key level. While recent price action has indeed been encouraging, I think we will need to see a more decisive follow through above this level for longer-term conviction. If ETH can follow BTC’s lead, a reclaim of its ATH around USD 4,878 could be on the cards.
Elsewhere, all eyes will be on the Fed this Wednesday, with a 25 bps cut widely expected. Ahead of the FOMC, meeting the USD is trading with a bid tone against most majors, with the DXY just above 106.90. Overall barring any surprises, the outlook for the USD continues to stay constructive with the USD set to stay supported through year-end, driven by interest rate differentials and resilient economic data.
As BTC unwraps new highs this holiday season, the trend remains strong – but markets have a way of keeping us on our toes.
Whether this rally continues into the New Year or pauses for a breather, the trend remains our friend – for now. Keep an eye on key levels and macro signals as we unwrap what’s next for crypto.
Until then, stay sharp, stay informed, and enjoy the ride.
Wishing you a bullish and bright holiday season!
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