Bitcoin prices retraced from all-time highs in November — an unexpected turn for what has historically been a positive-yielding month. Will the trend persist into 2022 or is there cause for concern?
In their latest report Taking A Break, the Kraken Intelligence team examines the factors that led to a correction across the crypto market. Additionally, the team looks into how the various crypto sectors performed, why ETH demand continues to surge and how the bulls are still in control — for now.
Bitcoin’s retreat from $69K raised concerns of crypto entering a bear market. However, support was found at the key level of $54K, boosting optimism that the bull trend remains intact and the market dodged a large deleveraging event. While December averages a historical return of 13% for BTC, current price action is not trending like any other prior fourth quarter.
Memecoins Faded, the Metaverse Surged
Interest in memecoins, such as DOGE and SHIB, dropped substantially in November. Where memecoins faded, prices of Metaverse tokens such as MANA and SAND outperformed the greater crypto market, with respective 60% and 330% monthly returns. Not only that, The Sandbox and game studios Faraway and Mythical Games completed successful funding rounds. Solana Ventures and Lightspeed Venture Partners announced a $100 million GameFi ecosystem fund.
The number of Bitcoin whales (wallets holding >₿1,000) grew slightly in November to reach a 2-month high. Yet, the total holdings in those same wallets dropped, an indication that profit-taking may have factored into the price drop. ETH whales (wallets holding >Ξ10,000) displayed an inverse dynamic, where the total number shrunk but their holdings per wallet increased. It appears those who are committed to ETH bought on weakness.
Number Go Up
Technical charts indicated a very promising bullish setup for SOL. Recent weakness indicates price is testing a rising level of support and renewed strength could lead to a “fourth wave” of price discovery. BTC and ETH technicals also suggest that recent pullbacks are simply retesting levels of support, perhaps before a move higher.
Want to learn more about what went down and what’s ahead? Download the Kraken Intelligence report Taking a Break, to understand what’s moving the market and where prices may be going.
VIP clients are the first to receive Kraken Intelligence reports. If you’d like access to our newsletter or want to start trading, get the resources crypto investors worldwide trust.
You must be logged in to post a comment.