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The Rake Review: January

Fri, 31 Jan 2025 17:31:20 +1100

January Sets the Stage for a Bullish 2025

An event-packed January comes to an end, and Bitcoin is set to close positive once more, up 11%. This month saw Bitcoin trade back under $90K for the first time since mid-November, new all-time highs, and price catalyst events that seemed to emerge every few days. From bearish events such as the US DOJ's clearance to sell seized assets, the lack of any mention of crypto in Trump’s inauguration speech, and DeepSeek AI posing a threat to US AI stocks, to bullish catalysts like a dovish tone from Powell and a pro-crypto executive order, the market experienced a constant push and pull.

From Doubt to Dominance

In the early days of Bitcoin, many traditional financial leaders and government officials viewed it with scepticism and even hostility. For instance, in 2019, former President Donald Trump stated, "I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air." Meanwhile, BlackRock CEO Larry Fink had once dismissed Bitcoin as an "index of money laundering." The mainstream narrative painted Bitcoin as a tool for criminals, a speculative bubble, or, at best, a niche asset for tech enthusiasts.

Yet, Bitcoin persisted. During 80% drawdowns, it faced relentless criticism: media headlines called it a scam, governments threatened regulation, and financial institutions openly mocked its supporters. Over the last five years, Bitcoin experienced immense volatility—falling below $4,000 in 2020, then $10,000, $20,000, $30,000, and $40,000, eventually creating new highs. Each price collapse was met with critics celebrating Bitcoin's 'downfall', yet every drawdown offered a historic opportunity to accumulate Bitcoin.

The individuals who bought during these crashes—who held extreme conviction in Bitcoin’s long-term vision—understood that mainstream adoption was inevitable. They weren’t swayed by FUD (fear, uncertainty, and doubt); instead, they recognised Bitcoin’s value proposition and its potential to be integrated into the global financial system.

Fast forward to January 2024, and the landscape had dramatically shifted. Bitcoin was trading around $40,000, and the launch of the first Bitcoin ETFs marked a historic moment where traditional finance finally embraced digital assets. BlackRock, once sceptical, now led the charge with its Bitcoin ETF, alongside other Wall Street giants.

By January 2025, Bitcoin’s ascent continued, surpassing $100,000 and proving that those who bet against it had once again been wrong. This time, the adoption wave wasn’t limited to asset managers—the U.S. government itself had stepped in. In a groundbreaking move, President Trump signed an executive order supporting Bitcoin and pro-crypto policies, marking the first official embrace of Bitcoin at the highest level of government. The man who once dismissed Bitcoin as "thin air" was now positioning himself as "The Crypto President." Over the past year, he has repeatedly praised Bitcoin and crypto, emphasising the importance of "financial freedom" and a "pro-Bitcoin stance" for America's economic future.

This transformation—from rejection to adoption—has solidified Bitcoin's role as a legitimate global asset. The past two Januaries have validated everything Bitcoin believers had envisioned: first, institutional adoption through ETFs, and now, the governmental embrace of Bitcoin as an economic force. Those who doubted Bitcoin during the bear markets, waiting for it to "go to zero," have been proven wrong time and time again.

As we stand in January 2025, Bitcoin’s journey is far from over. If history has taught us anything, it’s that Bitcoin doesn’t just survive—it thrives. And those who understand its long-term trajectory will continue to benefit from the opportunities it presents.

A Busy Yet Consolidative January

Source:: https://www.tradingview.com/x/YOnYYGEJ/

January 2025 seemed relatively slow in terms of price action, with Bitcoin hovering around $100,000 despite its intra-month highs and lows. However, this apparent calm belied a storm of events shaping the crypto market.

From Bitcoin’s 16th birthday to U.S. government drama, inflation data, and Chinese AI developments, the month was anything but quiet. Bitcoin started January strong, with seven consecutive days of bullish price action before bearish news hit the markets.

Just over a week before President Trump’s inauguration, the U.S. Department of Justice announced plans to sell 69,000 Bitcoin it had seized. This move shocked many, particularly as Trump had previously vowed not to sell seized Bitcoin during his presidency. The timing, just days before his inauguration, felt deliberate.

This bearish revelation, combined with disappointing employment data, pushed Bitcoin lower. However, the release of bullish CPI data for risk-on assets saw Bitcoin rally back above $100,000. Days before Trump’s inauguration, Bitcoin remained steady, but the inauguration speech itself brought the anticipated volatility. After dropping briefly below $100,000 due to no mention of Bitcoin in the speech, it quickly rallied to new all-time highs near $110,000.

The post-inauguration week was packed with crypto-related government developments, including:

The resignation of Gary Gensler.
The creation of a Crypto Task Force within the SEC.
A pro-crypto executive order to establish a national digital asset stockpile.

Bitcoin consolidated between $100,000 and $109,900 until another significant event disrupted the markets: the launch of DeepSeek AI, a Chinese-developed open-source AI protocol seen as a competitor to ChatGPT. The announcement sent ripples through global markets, especially tech-heavy sectors. The NASDAQ opened 1.2% lower due to the dominance of AI-related stocks, with NVIDIA recording a $600 billion single-day market cap wipeout—the largest in history.

Crypto wasn’t immune to this shock, with Bitcoin briefly falling 5% to dip below $100,000. However, Bitcoin and altcoins rebounded strongly. Bitcoin reclaimed $104,000, while projects like Sui, Ripple, and Ondo recovered their losses and rallied to new highs.

The final event of the month was the heavily anticipated FOMC interest rate decision. Although a rate cut was deemed highly unlikely, the market still reacted negatively to the announcement of no cut. However, a dovish tone from Federal Reserve Chairman Jerome Powell provided relief, sending Bitcoin from $101,000 to $105,000.

Looking ahead, February has historically been one of Bitcoin’s most bullish months, with an average return of 16.6%. If this trend continues, Bitcoin could end February at approximately $122,500. Of course, past performance is not indicative of future results.

In the News:

Stormrake Client Portal:

We are thrilled to announce the Stormrake Client Portal. Here’s what’s waiting for you:

A secure, intuitive way to view your crypto assets.
Real-time insights into your portfolio.
A foundation for even greater features coming soon.

In the coming days, Stormrake clients will receive an email inviting them to the new Stormrake Client Portal.

Czech Republic BTC Accumulation:

Czech National Bank Governor Aleš Michl has proposed allocating 5% of the 140 million euros within the central bank’s reserves to Bitcoin, which could make the CNB the first Western central bank to officially buy and hold Bitcoin.

Ross Ulbricht Pardoned:

During his campaign, President Trump pledged to pardon Silk Road creator Ross Ulbricht, a move widely supported by the crypto community. On his first day in office, he delivered on that promise, securing Ulbricht’s release.

Market Update

Here is the fast five of what you need to know about the market in January 2025:

Bitcoin ends January up 11%.
XRP becomes the third-largest cryptocurrency by market cap.
Solana drops to 5th place.
DOGE flips USDC to take 7th place.
TRUMP token storms into the top 35 within 48 hours of launch.

Video of the month

The Pro-Crypto Executive Order Explained

Education: Bitcoin’s Rising Dominance: The Great Coin Dilution Effect

Over the past few years, the cryptocurrency market has witnessed an explosion of new tokens. Thousands of projects launch daily, and millions of new coins enter circulation. Despite this relentless expansion, Bitcoin’s price has not only increased but dominance has strengthened.

The Numbers Tell the Story

Bitcoin dominance (BTC’s share of the total crypto market value) has risen from 40% to 59% in three years.
Ethereum (ETH), once holding 18% of total market capitalisation, has slipped to 10%.
All other coins combined have fallen from 42% to 30%.

The Rise of Disposable Coins

98% of memecoins fail to survive longer than three months.
10,417 tokens are launched daily, yet 9,912 become defunct.
The average lifespan of a memecoin is just 12 days.
15% of memecoins die within one day of launch.

Source: https://chainplay.gg/blog/lifespan-pump-fun-memecoins-analysis/

This rapid churn dilutes the altcoin market, siphons investor capital into speculative plays, and undermines long-term confidence in the sector.

Altcoin Dilution: The Flood vs. the Foundation

While Bitcoin operates on a strict fixed supply of 21 million, the altcoin market is inundated with tokens, many of which are inflationary or poorly structured. This has two major effects:

Capital Dilution – With every new token, available liquidity fragments further, reducing the ability of altcoins to sustain long-term value.
Market Confidence Erosion – As most altcoins fail, capital rotates into Bitcoin, reinforcing its position as a safe haven.

Decoupling of Bitcoin and Altcoin Market Caps

Historically, Bitcoin and the broader altcoin market have moved in tandem. During bull markets, altcoins often outperformed Bitcoin, acting as leverage on BTC’s price action. Conversely, during bear markets, altcoins experienced sharper declines, with their lack of liquidity amplifying losses

However, the chart above points to a clear decoupling trend.

Bitcoin is increasingly diverging from the broader crypto market. Historically, speculative "alt seasons" drove temporary outperformance by altcoins, but this dynamic appears to be fading. As the latest market trends indicate, Bitcoin is beginning to leave the rest of the crypto market behind.

Key Observations:

Bitcoin’s Rising Market Cap

Since 2022, Bitcoin’s market cap has consistently trended upwards, reflecting growing demand from institutional investors, sovereign wealth funds, and individuals seeking a secure, scarce digital asset.
Altcoin Market Cap Stagnation

In contrast, altcoins have struggled with choppy price action, as continuous dilution from speculative token launches undermines growth and fragments liquidity.
The End of "Alt Seasons"

The previous trend of altcoins outperforming Bitcoin during speculative phases is fading, reinforcing Bitcoin’s dominance and decoupling from the broader market.

What This Means

This decoupling reflects a broader shift in investor sentiment. Bitcoin’s scarcity, unrivalled security, and growing institutional adoption make it increasingly differentiated. Meanwhile, the altcoin market struggles with rampant speculation, daily dilution, and high failure rates.

The Takeaway: Buy and Hold Bitcoin

Despite millions of new tokens flooding the market, Bitcoin’s dominance is rising—a testament to its resilience and appeal. In a world awash with disposable tokens, Bitcoin’s stability and scarcity make it the clear standout

Written by Alexandar Artis

Memes of the month

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No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Stormrake is not a financial adviser and does not provide financial product advice. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances. Stormrake is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by this newsletter.

Disclaimer

All statements made in this newsletter are made in good faith and we believe they are accurate and reliable. Stormrake does not give any warranty as to the accuracy, reliability or completeness of information that is contained here, except insofar as any liability under statute cannot be excluded. Stormrake, its directors, employees and their representatives do not accept any liability for any error or omission in this newsletter or for any resulting loss or damage suffered by the recipient or any other person. Unless otherwise specified, copyright of information provided in this newsletter is owned by Stormrake. You may not alter or modify this information in any way, including the removal of this copyright notice.

Copyright © 2022 Stormrake Pty Ltd, All rights reserved

The Rake Review: December

Fri, 20 Dec 2024 17:55:40 +1100

A Year in Review

Our Christmas gift to you, an early Rake Review as well as a Christmas promotion. Read more to find out...

An Incredibly Volatile Month

December has been an exceptionally volatile month, featuring two major liquidation events, four new all-time highs, and an interest rate cut followed by a press conference from Jerome Powell that rattled global markets. But most importantly, Bitcoin hit $100,000 USD.

With less than three weeks of the month gone, the hope is that the Christmas period will stabilise the market and set Bitcoin up for another rally.

The month began with significant turbulence. December 5, the day Bitcoin hit $100k was also the same day Bitcoin experienced one of the largest liquidation events in recent history, plunging from a high of $104,000 to a low of $90,500—a 15% range in a single day. This resulted in $1.1 billion in leveraged positions being liquidated, marking the largest day for liquidations since August. The chaos escalated further on December 9th, with another liquidation event surpassing the first. Bitcoin corrected sharply from $101,200 to $94,100, wiping out $1.7 billion in leveraged positions in a single day. To put this in perspective, this liquidation volume exceeded that of the FTX collapse in late 2022.

Despite these setbacks, Bitcoin rebounded strongly. Finding support at the 25-day exponential moving average, it surged to new all-time highs for three consecutive days. The bullish momentum was a relief for Bitcoin investors, as the asset once again outperformed the broader market. Bitcoin dominance climbed, while many altcoins struggled to keep up. Notable exceptions included Ondo and Sui, which also set new highs. With an interest rate cut on the horizon and the historical "Santa Claus Rally" adding seasonal optimism, conditions appeared favorable for Bitcoin.

However, Jerome Powell’s post-rate-cut press conference shifted the tone. While the Federal Reserve delivered the anticipated interest rate cut, Powell’s remarks struck a hawkish note. Key takeaways included:

Persistent inflation remains a concern.
Projections for five interest rate cuts in 2025 were revised down to two.
The Fed plans to adopt a cautious approach to future cuts.
Uncertainty surrounds Trump’s upcoming policies.
The Federal Reserve reaffirmed its policy prohibiting Bitcoin holdings, with no plans to change this stance.

The market’s reaction was swift and severe:

The US dollar surged to a two-year high.
US stock markets shed $1.5 trillion in value.
Gold and silver dropped 2% and 5%, respectively.
Bitcoin fell over 4%, briefly dipping below $100,000.
Most altcoins suffered declines of over 10%.

All this unfolded within the first three weeks of December, leaving plenty of room for additional surprises in the remaining days. Historically, the Christmas period has been bullish for Bitcoin, and we remain optimistic about a positive close to the year.

As always, our long-term bullish outlook on Bitcoin is unwavering. Corrections should be viewed as opportunities to buy the dip, accumulate Bitcoin, and invest in high-potential altcoins at discounted prices. This strategy has consistently proven to be a formula for success.

What’s Next for Bitcoin in January?

January 2025 is shaping up to be a pivotal month for global markets, with events that could set the tone for the next four years. Most notably, Donald Trump’s inauguration on January 20th is expected to have a significant impact, particularly on Bitcoin.

The anticipated implementation of the Strategic Bitcoin Reserve shortly after the inauguration is likely to drive unprecedented demand from the US Government. This move could trigger a domino effect, as other nations may act preemptively by purchasing Bitcoin for their own reserves. Currently, many countries already hold Bitcoin:

El Salvador has been actively buying.
China and the UK have acquired Bitcoin through seizures.
Countries such as Bhutan, Saudi Arabia, UAE, and Qatar are mining or rumored to be accumulating Bitcoin.

There is increasing speculation that sovereign Bitcoin purchases by Middle Eastern nations could intensify. Once the US government begins its acquisitions, other major countries are likely to follow, potentially igniting a global race to lead in the crypto space.

Before Trump's inauguration, FTX, the collapsed exchange, is set to begin repayments starting January 3rd. The first batch of customers will receive compensation in USDT or USDC. It is highly likely that a significant portion of these funds will stay within the crypto ecosystem, flowing into assets like Bitcoin, Ethereum, and other altcoins. This development serves as another bullish catalyst to kick off the year on a strong note.

From a market cycle perspective, January is still early in the bull run. Bitcoin remains dominant, with Bitcoin dominance flipping bullish as Ethereum and other altcoins struggle to consistently outperform. This aligns with phase one of the bull market cycle, where Bitcoin historically leads the charge.

The trajectory for January will depend heavily on how December concludes. Two scenarios stand out:

Bullish Close to December: If Bitcoin reclaims its short- and medium-term bullish structure and trades back above $100,000, further all-time highs in the $110,000–$120,000 range are likely in January.
Bearish Close to December: A deeper correction could see Bitcoin trading closer to $75,000 as we enter the new year.

Barring any black swan events or unforeseen developments in December, the long-term outlook for Bitcoin remains firmly bullish. Deeper corrections should be embraced as opportunities to strengthen Bitcoin positions and accumulate strong altcoins at discounted prices.

A Timeline of Key Events that Shaped Bitcoin

A clearer view of the chart above can be found here: https://www.tradingview.com/x/ve1vEvwc/

Opening the Year Strong at $42,200
ETF launch Jan 11 ($46.6k)

All time high March 14 ($73.8k)

Bitcoin halving April 20 ($64.4k)

8 month consolidation (Between $50-$70k)

Mt Gox Repayments, German Government and US DOJ mass selling of BTC

Early July ($53.4k low)

Trump’s speech at Bitcoin 2024 29 July ($70k)

Yen carry trade 5 August ($49k low)

Jackson Hole Symposium 26 August ($65k)

Dovish Jerome Powell saw risk on assets rally

First Trump Assassination - Trump Pump

Marked the low at $52.5k and rallied to $67k in three weeks,

October - ‘Uptober’

US Election; Trump wins, ATH arrives November

Further momentum

$100k Dec

Powell hawkish speech sub 100k

2025; Time for the Real Bull Market

2025 is shaping up to be a landmark year for Bitcoin and the broader crypto market. Based on the timing of this bull cycle, we expect the peak to occur later in the year. As highlighted earlier, we are still in the early stages of the bull market, with a blow-off top and full-scale altseason yet to unfold.

One of the most anticipated events is Trump’s inauguration in January, which is expected to initiate the Bitcoin Strategic Reserve shortly thereafter. This policy will see the US Government purchase 200,000 Bitcoin using existing funds, creating an unprecedented surge in demand. Such institutional buying pressure will likely trigger a historic rally. For a detailed analysis of the Bitcoin Strategic Reserve, refer to our previous Rake Review article.

While we are deeply bullish on Bitcoin—it should be the cornerstone of any crypto portfolio—we’ve also identified several altcoins with the potential to lead the market during the altseason. Many of these have already delivered impressive returns, as covered in our daily Morning Notes and Thunder Trading articles. However, with the bull cycle still in its early phase, these coins have significant upside left. Among our favorites are SUI, ONDO, SOL, and FTM, to name a few. For the complete list, reach out to your Stormrake Broker.

A key metric we use to assess market positioning is the MVRV Z-score (Market Value to Realized Value). This indicator compares Bitcoin’s market value (black line) to its realized value (blue line), with the Z-score (orange line) highlighting standard deviations between the two. Historically, the Z-score’s green band signals market bottoms, while the red band signals tops. Currently, the Z-score remains in the lower half of the chart, far from the red band. This strongly suggests that the peak of this bull cycle is still a long way off.

Finally, it’s essential to emphasise that there is never a bad time to buy Bitcoin. Over its lifetime, Bitcoin has proven to be one of the best-performing assets, with every holder who kept their Bitcoin for four years or more always ending up in profit. A common mistake among investors is attempting to time the market and overtrading. The reality is that time in the market always beats timing the market. Instead of waiting for a dip that may never come, it’s better to accumulate Bitcoin consistently.

This advice is especially relevant as Bitcoin nears all-time highs—its price tag can be intimidating, but sitting on the sidelines often leads to missed opportunities. To delve deeper into how overtrading can lead to underperformance, check out our detailed Thunder Trading article here.

Market Update

Here is the fast five of what you need to know about the market in December 2024:

Bitcoin is currently up 0.60% from the open…
XRP reaches 4th in overall market cap after being 3rd for a brief time
Cardano jumps Lido Staked Ether to move into 9th
Solana falls from 4th to 6th largest crypto
ISO tokens continue to be the dominant category, HBAR, XRP, ALGO and XLM leading.

Video of the month

A snippet from Jerome Powell's Hawkish Speech

Bitcoin and Ethereum ETF Performance:

All throughout December the net flow of money in Bitcoin and Ethereum has remained positive for every consecutive day. This exemplifies the positive market sentiment about the new securitisation of digital products on established exchanges.

Stormrake Morning Notes and Thunder Trading Hits

One of the standout achievements of the year has been the revival of our Morning Notes and Thunder Trading articles. These research pieces have provided clients with invaluable insights into the markets, particularly crypto projects we identified as undervalued.

Clients can tailor their engagement by opting to receive just the Rake Review, Morning Notes, Thunder Trading, or a customised combination of these updates, this can be done by clicking HERE.

Morning Note (DAILY PUBLICATIONS)

Our Morning Notes are concise, 3–5-minute reads delivered to subscribers six days a week. Each note includes:

Daily Market Analysis: A snapshot of market movements and relevant events impacting short-term prices.
Stormrake Spotlight: A feature on a specific coin or project we believe to be undervalued. These picks have consistently yielded impressive returns for those who followed.
Short-Term Bitcoin and Ethereum Analysis: A technical overview of key price levels and trends to watch.

Thunder Trading (TOPICAL PUBLICATIONS)

Thunder Trading articles dive deeper, offering in-depth research on specific projects, migrations, or significant events affecting the market. Some of our most notable Thunder Trading pieces this year include:

The Yen Carry Trade and its market impact.
The Mt. Gox repayments and mass Bitcoin sell-offs by the US DOJ and German government.
The introduction of Ethereum ETFs.
Educational insights, such as overtrading and its impact on underperformance.
A project-focused deep dive on Sui, which was a major hit with clients.

The Sui article was particularly well-received. Subscribers who followed our analysis were able to purchase Sui at prices below $2. With its recent all-time high just under $5, the project continues to show potential for further rallies. For a comprehensive look at why we remain bullish on Sui, read the full article.

To explore our published Thunder Trading articles, click here, and to stay ahead of future editions, make sure to opt-in and subscribe.

Majority coins in the Stormrake Spotlight have been quite successful, below is a full list of coins that have featured in the Stormrake Spotlight and their performance since featuring.

**figures at time of writing 19/12/2024*

Since launching the Stormrake Spotlight in September, 13 coins have been featured, each delivering peak returns of at least 15% above their initial mention. Notably, eight of these coins remain comfortably in profit.

Top Performers

Five coins (FTM, SUI, GOAT, DOGE, ONDO) have achieved returns well over 100% since being featured.
Four of these still remain above 100% from their first mention.
WIF and SOL narrowly missed the 100% milestone, peaking at 97% and 92%, respectively.
ETH and TAO peaked at 55% and 73%, respectively, meaning nine of the 13 coins have delivered over 50% returns.

To ensure you don’t miss out on future opportunities and the exceptional returns from Stormrake Spotlight, subscribe to the Morning Notes on Substack here. SUBSCRIBE

STORMRAKE'S CHRISTMAS GIFT TO YOU

Thank You for an Incredible Year!

As the year comes to a close, we want to express our gratitude for being a valued part of our community. Your trust and support have made 2024 an amazing year, and we’re excited to help you achieve even greater milestones in the year ahead.

As a token of our thanks, we’re giving you a special end-of-year bonus:

For every AUD$10,000 worth of Bitcoin you purchase with Stormrake, we’ll gift you AUD$20 worth of Bitcoin.

It’s our way of saying thanks for choosing us as your trusted partner in crypto.

This exclusive offer is available until December 31, 2024, so don’t miss out!

Terms & Conditions

This promotion is valid from December 21, 2024 to December 31, 2024, 11:59 PM (AEST).
Bonus Bitcoin is awarded at a rate of AUD$20 for every AUD$10,000 worth of Bitcoin purchased in a single transaction.
Bonus Bitcoin will be credited to your account as part of the qualifying transaction.
Transactions canceled or refunded will not qualify for the bonus.
Standard trading fees apply.
We reserve the right to amend or withdraw this promotion at any time without prior notice.

Written by Alexandar Artis

Memes of the month

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If you enjoyed this Rake Review, feel free to open an account and gain access to more proprietary research and work with your very own dedicated crypto broker.

No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Disclaimer

Bitcoin Hits New All-Time High as Alts Trade at a Discount

Wed, 18 Dec 2024 14:17:04 +1100

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Bitcoin reached a new all-time high overnight at $108,350, but this came as most altcoins faced notable declines. Despite the record high, Bitcoin closed the day only 0.07% above its opening price. While not inherently concerning, the 2% drop from the daily high to the close isn’t the most bullish signal for short-term price action.

With the interest rate decision looming tomorrow morning, crypto investors are once again pivoting their attention toward Bitcoin. This sentiment is reflected in Bitcoin Dominance, which climbed above 58%—a new higher high and higher low—suggesting a potential reversal to the upside for dominance. While Bitcoin remains steady and even printed a fresh all-time high, most altcoins have dropped more than 5% over the last 24 hours.

The Altseason Index continues its decline, now sitting at 63, down from 65 yesterday. Simultaneously, the market's sentiment has cooled slightly, as the Fear and Greed Index dipped from 87 to 81. Despite this slight pullback, the index remains firmly in the ‘extreme greed’ territory.

The path to success is clear: buy and hold Bitcoin. Don’t overcomplicate things. For more on this topic, check out our recent Thunder Trading article: Overtrading Leads to Underperformance.

For investors feeling underexposed or worried about missing out, this is just the beginning. Strengthening your Bitcoin position or acquiring quality altcoins could yield substantial long-term gains. The crypto market is still in its early growth phase, providing believers with a prime environment to capitalise. Contact your Stormrake Crypto Broker today to seize this moment.

Stormrake Spotlight: Solana (SOL) ($225)

Solana was one of the few standout performers yesterday, closing the day 3% up from its open and currently trading 6.66% higher from yesterday’s low. This positive price action is noteworthy, especially as Ethereum closed 2.4% down. Solana’s relative strength signals bullish momentum and could pave the way for a move back toward new all-time highs.

BTC/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/SvTgDmnf/

Bitcoin has hit the $108k CPR resistance, as anticipated, which triggered a rejection back down. This pullback saw BTC break below the 21EMA but find support at the 55EMA. If the 55EMA fails to hold, it could signal the end of short-term bullish momentum and open the door for a deeper pullback. Expect this resistance level to remain a significant hurdle for BTC on its next breakout attempt.

BTC Total ETF Flows for 17 Dec: $ - 122.3 million

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)

ETH/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/oI8Nvkiw/

Ethereum has surrendered all its gains from the past two days and is now approaching key support at $3,724. A bearish crossover of the key EMAs has emerged, confirming a breakdown in the bullish structure as ETH continues to print lower highs and lower lows. If ETH loses the 200SMA, it could accelerate its decline straight to the $3,724 level.

ETH Total ETF Flows for 17 Dec: $ + 6.0 Million

(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)

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*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

Disclaimer

Back-to-Back Mornings of New Bitcoin All-Time Highs

Tue, 17 Dec 2024 14:05:24 +1100

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Bullish momentum has firmly returned as Bitcoin set another all-time high overnight at $107.8k. However, this surge wasn’t mirrored across the broader crypto market. Ethereum and Ondo were among the few assets that remained in the green over the last 24 hours. Prior to yesterday, most coins enjoyed an impressive rally but have since seen a healthy and measured pullback. Notably, Fantom (FTM) surged as high as 24% before undergoing a modest 6% retracement.

As we edge closer to the interest rate decision and the Christmas season, Bitcoin continues its upward trajectory, fueled by optimism surrounding these anticipated bullish catalysts.

Despite Bitcoin’s rally and its fresh all-time high, altcoins have delivered mixed results. The altseason index has slipped to 65, while Bitcoin dominance has rebounded, showing signs of a potential trend reversal. After bottoming at 54.56% on December 3rd, Bitcoin dominance now trades just shy of 58%. Although not yet a full-fledged reversal, it has established a higher low and appears poised to print a higher high on the daily timeframe.

Ethereum remains in a downtrend against Bitcoin, having set yet another lower high, further cementing its bearish structure. Until Bitcoin dominance breaks down decisively and we see consistent outperformance from altcoins, the long-awaited altseason remains on hold.

The path to success is clear: buy and hold Bitcoin. Don’t overcomplicate things. For more on this topic, check out our recent Thunder Trading article: Overtrading Leads to Underperformance.

Stormrake Spotlight: Solana (SOL) ($216.31)

Since setting a new all-time high in November, Solana (SOL) has experienced four consecutive weeks of bearish price action, declining 20% from its peak. Despite this, Solana’s on-chain usage continues to surge. Total transactions have increased by 20% since its all-time high, highlighting the network’s resilience and continued adoption.

SOL remains a premier cryptocurrency, and this pullback could present a prime entry opportunity. If you believe SOL has the potential to surpass its previous highs, this discount is a no-brainer.

BTC/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/99FLkXhR/

Bitcoin set another all-time high overnight at $107.8k, coming just $200 shy of our short-term target. This surge led to the formation of bearish divergence, resulting in a minor pullback as expected. The retracement found support at the 21EMA, and Bitcoin currently trades above this level, poised for the next bounce and an attempt at $108k. This $108k level is expected to act as a significant resistance.

BTC Total ETF Flows for 16 Dec: $ + 102.6 million

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)

ETH/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/psz0kVCb/

Ethereum reached the key resistance level of $4,064 as anticipated but failed to hold above it. Since hitting this resistance, ETH has retraced to its current price levels, now trading below the 21EMA and eyeing a potential move toward the 55EMA. If ETH fails to find support at either of these levels, further downside to the 200-day moving average at $3,880 becomes likely.

Should this scenario play out, Ethereum would erase all the gains from the previous two days—an outcome that would not signal bullish strength.

ETH Total ETF Flows for 16 Dec: $ + 16.3 Million

(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)

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Written by Alexandar Artis

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Bitcoin Hits Another All-Time High, Kicking Off a Bullish Week

Tue, 17 Dec 2024 13:55:54 +1100

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What a fantastic way to kick off Monday! In the last hour, Bitcoin has broken out to hit a new all-time high of $106,500. This week is shaping up to be incredibly bullish for crypto markets, with the upcoming US interest rate decision on Thursday morning. Expectations are for a 25 bps cut (95% probability), which should fuel optimism and lead seamlessly into the Christmas “Santa Claus” rally.

Last Wednesday, in the Morning Note, when Bitcoin was trading at $96k, I highlighted a historical pattern suggesting Bitcoin could reach $111k within the next month and that the recent correction was likely over. Fast forward to today: Bitcoin is up 10% since then, trading at fresh highs. With this $111k target now less than 5% away, a bullish week could see Bitcoin reaching this level much sooner than anticipated.

This week’s price action serves as yet another reminder for those who believe they can time the market. Just days ago, many were holding out, expecting Bitcoin to dip lower. Instead, they were left on the sidelines as Bitcoin surged to new highs. For a deeper dive into why timing the market often leads to missed opportunities, check out our recent Thunder Trading Article: Overtrading Leads to Underperformance.

Spoiler alert: the best strategy remains a simple one—buy Bitcoin and hold.

As Bitcoin leads the charge, some of your favorite altcoins are seeing exceptional bullish price action, either hitting new highs or setting the stage for significant moves higher.

Ondo: Up nearly 20% from yesterday’s low, it’s now trading at new all-time highs.

Fantom (FTM): Up an impressive 23% in just over 24 hours, now trading at $1.46. While still 60% below its all-time high, the ongoing Sonic migration scheduled for this week creates a bullish environment for further gains.

Stormrake Spotlight: Gala Games (GALA) ($0.0515)

Gala continues to hold above $0.05, forming a bullish base that positions it for higher moves in the coming weeks. Since our first mention in the Morning Note, Gala has climbed over 10%—another successful Stormrake Spotlight pick. Be sure to check back tomorrow for the next standout opportunity!

BTC/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/bNk1LRa2/

Bitcoin has set yet another all-time high, breaking out with strength after a perfect bounce off the 21 EMA. This momentum is expected to carry BTC to our next target of $108k, where some resistance could emerge. A consolidation or pullback at this level may present a prime buying opportunity.

BTC Total ETF Flows for 15 Dec: $ N/A million

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)

ETH/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/0zO4JhaX/

Ethereum has reclaimed the $4,000 level, breaking out of its recent consolidation. With strong bullish momentum, ETH is primed to retest the current high of $4,064. If ETH successfully breaks this level without failing as it did previously, the next target is $4,200, a key level for further upward momentum.

ETH Total ETF Flows for 15 Dec: $ N/A Million

(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)

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*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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Bitcoin Consolidates as Sui Soars to New Highs

Tue, 17 Dec 2024 13:48:00 +1100

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When Bitcoin enters a period of consolidation, it creates a window for altcoins to step up, showcase their strength, and lead the market narrative. Following the mass liquidation event at the beginning of the week, Sui has emerged as the standout performer. Sui has surged nearly 50% since Tuesday, reaching new all-time highs of $4.92, with the momentum to climb further. This rally has propelled Sui past XLM, WBTC, and DOT, making it the 17th-largest cryptocurrency by market capitalization.

Sui has been one of our strongest recommendations in the Morning Note since it was trading at around $1.80. Its remarkable performance continues to validate our bullish outlook. Over the past 24 hours, crypto Twitter has been abuzz with chatter about the Sui ecosystem, pushing $SUI to the top of trending topics in Business and Finance on X. Many key opinion leaders (KOLs) in the crypto space have even dubbed Sui “the Solana of this bull run.”

Source: https://defillama.com/chain/Sui?volume=true&developers=false

Sui’s trajectory strongly mirrors Solana’s meteoric rise in early 2021, particularly in terms of growth, usage, and price action. The ecosystem has seen exponential growth, with Total Value Locked (TVL) increasing by 600% and transaction volume on the Sui blockchain up by 800% since the beginning of August.

One of Sui’s biggest competitive advantages lies in its low transaction fees. Year-to-date, the average transaction fee on Sui is just $0.004—10 times cheaper than Solana and a staggering 1,425 times cheaper than Ethereum. This cost efficiency is a significant factor driving developers and users to build and transact on Sui instead of Ethereum or other blockchains.

When a blockchain gains traction, it’s not just the native token that rallies—key projects and top memecoins within the ecosystem can even outperform the native token. These assets can serve as leveraged bets on the blockchain’s success, offering outsized returns for investors who position themselves early.

Sui is still in its early stages, with substantial room for growth. For a comprehensive analysis of its potential, check out our Thunder Trading Article, ‘Sui, the new Ethereum or Solana?’

Stormrake Spotlight: Gala Games (GALA) ($0.0515)

Gala Games (GALA) continues to hold above $0.05, strengthening its case for a move higher once the broader consolidation phase concludes. The medium-term target for GALA remains the recent high of $0.067—a potential 29% increase from current levels. If Bitcoin benefits from bullish catalysts this month and resumes its uptrend, Gala could retest this key level.

BTC/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/lEUMmUtu/

Bitcoin has successfully held above the critical $100K level during a relatively uneventful 24-hour period. Although BTC remains in a consolidation phase, it continues to exhibit bullish characteristics, trading above all major moving averages. Volatility is expected to pick up in the coming days, with the market bracing for an upcoming interest rate decision.

BTC Total ETF Flows for 13 Dec: $ - 31.1 million

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)

ETH/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/mGTqcWZt/

Ethereum is firmly entrenched in a bullish structure, having set a higher low yesterday. ETH leveraged the confluence of moving averages as a bounce zone and is now trading at the 21 EMA. This area of confluence across moving averages provides strong support, positioning ETH for further gains. The near-term target remains at $4,064, supported by ETH’s sustained bullish trend.

ETH Total ETF Flows for 13 Dec: $ + 7.2 Million

(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)

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*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

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Trump’s Latest Crypto Buys: These Coins Are Soaring!

Fri, 13 Dec 2024 14:03:55 +1100

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Donald Trump rang the opening bell at the New York Stock Exchange this morning after being named Time’s Person of the Year. Trump reaffirmed his vision of the United States as the global leader in cryptocurrency, stating, "We will be doing something great with Crypto."

A few months ago, Trump made headlines by attempting to launch his own cryptocurrency, World Liberty Finance (WLFI), as a fundraising vehicle for his presidential campaign. While the initiative fell short of his own lofty expectations, the raised funds are now being used to purchase established cryptocurrencies. These purchases, tied to Trump’s influence, have caused a rally in the associated tokens, which are currently leading the market.

Source: https://intel.arkm.com/explorer/address/0x5be9a4959308A0D0c7bC0870E319314d8D957dBB

Recent acquisitions by WLFI include Ethereum (ETH), Chainlink (LINK), and Aave (AAVE). Notably, LINK and AAVE are today’s biggest gainers, surging 21% and 25%, respectively, since the purchases were made. This trend highlights Trump’s undeniable influence on the crypto market, positioning him as one of the most significant catalysts in recent history.

Over the past year, Trump’s bullish stance on cryptocurrency has consistently driven market optimism. His remarks and actions have coincided with strong upward momentum, with the broader market often following Bitcoin’s lead. The post-election rally in November further underscored the power of his endorsements. WLFI’s future acquisitions are likely to attract significant attention from the market. For those interested in monitoring WLFI’s crypto activity, the wallet link provided above offers full transparency.

Stormrake Spotlight: Gala Games (GALA) ($0.05071)

Gala Games (GALA) appears to be forming a solid base above $0.05 during its current consolidation phase, following a 13% rebound from its low two days ago. Despite broader market uncertainty, we remain bullish on GALA. This consolidation phase presents a potential opportunity to dollar-cost average (DCA) into the token, positioning for gains as the market stabilises.

BTC/USD Key Levels and Price Action:

Source: https://www.tradingview.com/x/5cijoeXp/

Bitcoin is battling to stay above the critical $100k support level, consolidating after achieving higher highs. BTC’s current bullish momentum is supported by its position above key moving averages. However, a break below these averages and the $100k level could signal a shift toward bearish control.

BTC Total ETF Flows for 12 Dec: $ + 132.8 million

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)

ETH/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/L7XusY46/

Ethereum maintains its bullish structure after setting a higher high. If ETH holds above its recent higher low of $3,800, this trend remains intact. Similar to Bitcoin, ETH is trading near its moving averages; a break below these levels could indicate bearish momentum, potentially driving ETH down to the key $3,724 support level.

ETH Total ETF Flows for 12 Dec: $ + 52.0 Million

(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)

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*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

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Overtrading leads to Underperformance

Fri, 13 Dec 2024 13:56:43 +1100

The recent price action in the crypto markets has underscored the importance of avoiding overtrading. Bitcoin has once again proven its dominance, climbing to new all-time highs while altcoins have delivered mixed results. Since November 7th, Bitcoin has surged from $66.8k to an all-time high of $104k, marking an impressive 50% rally in just a month. This rally initially drove Bitcoin dominance above 60%, only to retreat slightly, allowing altcoins to shine briefly—perhaps hinting at the start of an alt season. However, despite Bitcoin dominance peaking on November 21st, the price has continued its upward trajectory, setting new highs above $100k.

The strategy remains straightforward: buy Bitcoin. Bitcoin is the benchmark of the crypto market, and if your portfolio underperforms Bitcoin, you’re falling behind. Over the last 14 years, Bitcoin has delivered a staggering compound annual growth rate (CAGR) of 155%, compared to Gold’s 7%. Bitcoin should be the cornerstone of your portfolio, complemented by a strong allocation to select altcoins poised to outperform during their brief periods of dominance.

The Cost of Trying to Outsmart Bitcoin

The real danger arises when investors or traders try to outsmart Bitcoin, attempting to sell at the top and buy back at the bottom. Bitcoin has a knack for punishing impatience, and those who sell early often end up buying back at higher prices. Similarly, waiting for lower prices can result in missed opportunities. For instance, in November 2022, when Bitcoin was at $15k, many hesitated to buy, anticipating a drop to $12k—which never came. These individuals eventually bought back in at much higher prices.

A more recent example occurred during the US election period, with Bitcoin trading just below $70k. Fear of a potential pullback under a Kamala Harris-led administration sidelined many investors. They missed out on the subsequent rally, where Bitcoin soared to over $100k.

The current rally, from $66.8k to $104k, further illustrates this phenomenon. Hesitant buyers have repeatedly waited for a larger pullback, only to watch Bitcoin recover and continue climbing. Even during two rapid corrections—from $99.4k to $90.8k and from $104k to $93.8k—many stayed on the sidelines, expecting deeper retracements. These missed opportunities left investors watching from the sidelines as Bitcoin surged to new heights.

Time in the Market Beats Timing the Market

The key takeaway? Time in the market beats timing the market. Bitcoin rewards patience and punishes overcomplication. Trying to trade Bitcoin often leads to underperformance, while simply buying and holding has historically delivered the best results.

When investors miss out on Bitcoin’s gains, they often turn to altcoins in a bid to catch up. While it’s true that some altcoins outperform Bitcoin, this period of outperformance is usually brief and limited to specific phases of the four-year cycle. For example, while outliers like Solana or Sui may outperform for extended periods, the majority of altcoins underperform Bitcoin most of the time.

During Bitcoin’s recent meteoric rally, only a handful of altcoins have matched or surpassed its performance, with most lagging far behind. Investors who shifted into altcoins hoping to make up for missed Bitcoin gains have, in many cases, fallen even further behind the benchmark.

Overtrading: A Losing Strategy

Emotion-driven traders often make poor decisions, buying into strength and selling into weakness. At first glance, this approach may seem logical, but the data tells a different story. Overtrading disadvantages you from the start—fees accumulate with every trade, and the constant attempt to chase moves results in suboptimal performance.

The portfolio simulation above, comparing an overtrader with a patient investor, highlights the stark difference: starting with $100,000, the overtrader consistently underperforms due to transaction costs and mistimed moves, while the patient investor who simply holds Bitcoin achieves significantly greater gains.

Overtrading is a slow but sure way to diminish your portfolio value. Trading fees, regardless of the platform, add up over time, eating into potential profits. The lesson is clear: holding Bitcoin long-term is a far more effective and sustainable strategy than trying to outmaneuver the market.

Final Thoughts

Bitcoin is the foundation of any crypto portfolio for a reason. It offers unparalleled growth potential and serves as the benchmark against which all other assets are measured. Don’t fall into the trap of overtrading or chasing short-term gains. Patience, discipline, and a long-term mindset will always outperform impulsive decisions.

Let Bitcoin do the heavy lifting. Buy, hold, and reap the rewards over time. Keep calm and HODL

Written by Alexandar Artis and Tej Toor

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The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

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Bitcoin is Bullish Once More...

Thu, 12 Dec 2024 14:45:46 +1100

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As mentioned in yesterday's morning note, there was a bullish historical pattern we recognised, which was expected to propel Bitcoin to new highs over the next month or so. The recent price action overnight suggests that we may be on the way to fulfilling this pattern.

Leading into the CPI data release early this morning, Bitcoin and the crypto markets started trading higher, breaching the short-term bearish structure and flipping it back to the bulls just a few hours before the data was released. As anticipated, the CPI data came in as expected with a reading of 0.3% MoM and 2.7% YoY, marking a 0.1% increase from November's reading.

Since the CPI release at 12:30 am, Bitcoin and the markets have been on a one-way trajectory upwards with Bitcoin reclaiming $101k, up 5%, while other altcoins have rallied even more significantly.

The previous few days of price action presented investors with some golden bull market correction buying opportunities. Those who were proactive and bought the 20-25% discounts have reaped the rewards, with most strong altcoins rallying 20+% from those lows and looking poised to continue higher. Those who hesitated or tried to outsmart the market have been left behind and will likely have to buy at higher prices.

We've seen two of these quick bull market corrections over the past two weeks, each time the market responded extremely quickly, rewarding those who bought the dips and leaving the hesitant on the sidelines. If you've missed out on buying both these dips, let the next one be third time lucky and take advantage of the next correction. No one knows when this might occur, but when it does, it will be fast, so ensure you’re staying up-to-date with the Morning Notes and stay in touch with your Stormrake Broker to capitalise when the dip comes.

Stormrake Spotlight: Gala Games (GALA) ($0.0518)

GALA has rallied from the base we mentioned yesterday and has been one of the market leaders over the last 24 hours, up 13% from yesterday. Gala has been one of the leading assets over the past few weeks and shows no signs of slowing down.

BTC/USD Key Levels and Price Action:

Source: https://www.tradingview.com/x/9dUkodeC/

Bitcoin has regained its bullish structure and momentum overnight. BTC has not only created a new higher high and higher low, trading above all moving averages and back above the key level of $100k. Probability suggests we will attempt to create another new all-time high; once this is broken, we have a shot at approaching the medium-term target of $108k. Support is now at the key level of $100k.

BTC Total ETF Flows for 11 Dec: $ + 35.8 million

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)

ETH/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/0Q5cZxV7/

Ethereum has also reclaimed a bullish structure through new higher highs and higher lows after bouncing from the key support of $3,557. However, unlike Bitcoin, ETH has yet to trade above all moving averages; it's currently trading at the 200 SMA, which may act as a hurdle. If ETH breaks this, we can expect it to approach the key resistance of $4,064; if it fails, it might retest the key support of $3,724.

ETH Total ETF Flows for 11 Dec: $ + 14.0 Million

(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)

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*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.

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Bitcoin’s Correction Could Pave the Way to New All-Time Highs

Wed, 11 Dec 2024 14:13:09 +1100

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Some may view Bitcoin's recent correction and the accompanying mass liquidations as a bearish signal. While there’s a case to be made for caution and short term downside, I present a bullish perspective. In 2016, 2020, 2023, and now in 2024, Bitcoin has fallen to the daily 25 EMA in December. Each time, it bounced off this support and rallied in January. Notably, these Decembers were all followed by new Bitcoin all-time highs the following year. If history rhymes, it’s reasonable to expect new Bitcoin all-time highs in 2025.

Source: https://www.tradingview.com/x/zi3edBWS/

The chart series highlights the three prior instances of this pattern alongside the current price action. In 2016, Bitcoin rallied 56% within a month of bouncing off the 25 EMA. In 2020, the rally was a massive 138%, while 2023 saw a more tempered 22% bounce over the same period. If Bitcoin mirrors any of these moves in the next month, we could see prices ranging from $111K (on the lower end) to $200K (the higher end). While $200K Bitcoin in a month is a dream scenario, it’s not one I’d bet on just yet.

Currently, Bitcoin remains in a short-term bearish trend but is holding above the key 25 EMA, which suggests an upside bias into Christmas and early January. Could this be the setup Bitcoin needs to reclaim $100K and march toward new highs?

In the meantime, take advantage of these correction periods to accumulate discounted Bitcoin and strong altcoins. In previous Morning Notes, we’ve highlighted a selection of high-potential altcoins that are well-positioned to outperform and lead the market when bullish momentum returns.

For investors feeling underexposed or worried about missing out, this correction represents a golden opportunity. Strengthening your Bitcoin position or acquiring quality altcoins at a discount could yield substantial long-term gains. The crypto market is still in its early growth phase, providing believers with a prime environment to capitalize. Contact your Stormrake Crypto Broker today to seize this moment.

Stormrake Spotlight: Gala Games (GALA) ($0.0453)

Gala is consolidating post-correction after recently hitting $0.064. If the coin continues to find support in the $0.040–$0.044 range, it could establish a solid base and potential launch zone for the next rally. Keep an eye on this range for signs of strength.

BTC/USD Key Levels and Price Action:

Source: https://www.tradingview.com/x/aCp4Cgbl/

Bitcoin remains bearish in the short term, trading below all key moving averages and consistently creating lower highs. The 21 EMA has been a persistent resistance level. A break above this level would be the first sign of bullish momentum returning to the market. Until that happens, the short-term outlook remains bearish, with further downside likely.

BTC Total ETF Flows for 10 Dec: $ - 56.0 million

(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)

ETH/USD Key Levels and Price Action:

Source:https://www.tradingview.com/x/e6pPLZsn/

Ethereum mirrors Bitcoin’s behavior, trading below all moving averages and forming lower highs and lows. It recently approached the critical support level of $3,557 and managed to bounce. However, the 21 EMA continues to act as resistance, rejecting ETH on multiple occasions. The downside remains the favored direction, with a likely retest of key support in the near term.

ETH Total ETF Flows for 10 Dec: $ + 21.8 Million

(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)

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*All prices are denominated in USD unless stated otherwise*

Written by Alexandar Artis

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No Advice Warning

The information in this newsletter is general only. It should not be taken as constituting professional advice from the author - Stormrake PTY LTD.