Bitcoin Falls Short of the $43,000 Handle
Bitcoin (BTC) gained 0.60% on Saturday. After a 2.51% slide on Friday, BTC ended the session at $42,211. In a mixed session, BTC fell to a low of $41,685 before rising to a high of $42,670.
A lack of BTC-spot ETF-related news left BTC short of the $43,000 handle for the first time in four sessions. In-kind/Cash Creations/ Redemptions remained the focal point. Issuers have failed to convince the SEC to accept In-Kind Creates, meaning another round of amendments before the January 5-10 approval window.
On Saturday, Bloomberg Intelligence Analyst James Seyffart shared posts from Grayscale about In-Kind/Cash Creates. Significantly, Grayscale addressed the misconception that BTC-spot ETF investors would face tax requirements similar to Mutual Funds and other ETFs. Grayscale highlighted that all spot commodity ETFs have grantor trust structures for tax purposes.
The Grayscale BTC-spot ETF is a grantor trust. Grayscale touched on tax implications for retail investors, saying,
“Cash redemptions of grantor trusts are not taxable events for non-redeeming shareholders like retail investors.”
Grayscale also shared a blog for information on In-kind/Cash Creates and the tax implications.
Next week, further amendment filings would support hopes of the SEC approving a batch of applications in the January 5-10 approval window. Inflows would likely dictate BTC price trends after launch. Sustainable inflows would support more bullish bets for 2024.
DOGE Retargets $0.10 After a Monday Pullback from $0.1075
On Saturday, dogecoin (DOGE) rallied 4.85%, ending the day at $0.0972.
DOGE enjoyed a positive Saturday session.
Meme coins enjoyed a breakout session, with shiba inu coin (SHIB) surging 20.94% to end the Saturday session at $0.00001161.
There were no news events to support the positive sessions, while whale activity statistics remain influential.
Technical Analysis
Bitcoin Analysis
BTC remained above the 50-day and 200-day EMAs, sending bullish price signals.
A BTC move through the $42,900 resistance level would give the bulls a run at the Wednesday high of $43,554. A return to $43,500 would bring the December high of $44,747 into play.
BTC-spot ETF-related news and US regulatory chatter remain the focal points.
However, a break below the $41,585 support level would give the bears a run at the $40,800 support level.
The 14-Daily RSI reading, 56.70, suggests a BTC return to the $44,000 handle before entering overbought territory.
Ethereum Analysis
ETH held above the 50-day and 200-day EMAs, reaffirming bullish price signals.
An ETH move through the $2,300 resistance level would support a run at the December high of $2,403.
However, a fall through the $2,200 handle would give the bears a run at the $2,143 support level.
The 14-period Daily RSI at 52.90 indicates an ETH move to the $2,403 high before entering overbought territory.
Source : FX Empire / Dec 17, 2023