Bitcoin prices retreated from historic highs in November – an unexpected turn for what has historically been a positive-performing month. Will the trend continue until 2022 or is there cause for concern?
In their last report To make a break, the Kraken Intelligence team examines the factors that led to a correction in the crypto market. Additionally, the team examines how the various sectors of crypto are performing, why demand for ETH continues to rise, and how the bulls are still under control – for now.
Sure … for now
Bitcoin’s $ 69,000 withdrawal raised concerns that crypto could enter a bear market. However, support was found at the key $ 54,000 level, reinforcing optimism that the uptrend remains intact and the market dodged a major deleveraging event. While December averages a historic 13% return for BTC, the current price action is not moving like any other previous fourth quarter.
Memecoins Faded, the metaverse leapt
Interest in memecoins, such as DOGE and SHIB, dropped significantly in November. Where memecoins have faded, prices for Metaverse tokens such as MANA and SAND have outperformed the larger crypto market, with monthly returns of 60% and 330%, respectively. In addition, The Sandbox and game studios Faraway and Mythical Games have successfully completed fundraising. Solana Ventures and Lightspeed Venture Partners announced a $ 100 million GameFi ecosystem fund.
The number of Bitcoin whales (wallets holding over 1,000) edged up in November to a 2-month high. Still, the total holdings in those same portfolios fell, indicating that profit taking may have been factored into the price drop. ETH whales (wallets containing> 10,000) showed the opposite dynamic, where the total number decreased but their holdings per wallet increased. It seems that those who have engaged in ETH have bought on the weakness.
Number Go up
Technical charts indicated a very promising bullish pattern for SOL. Recent weakness indicates that the price is testing a rising support level and renewed strength could lead to a “fourth wave” of price discovery. BTC and ETH techniques also suggest that recent withdrawals are only retesting support levels, possibly ahead of a rise.
Want to know more about what happened and what to expect? Download the Kraken Intelligence report To make a break, to understand what moves the market and where prices can go.
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