Market update 12/18/2020: Bitcoin consolidates, alts pullback after rally

Here are some brief thoughts about the current market conditions and what I’m seeing in the market.

-Joseph Young

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Generally, Bitcoin is currently consolidating/pulling back, not showing much volatility after last night’s big price movement.

$22.3k is a short-term support level on lower time frames, but not too strong for now.

Below $22.3k and Bitcoin starts to become cautious in the very short term.

Exchange heatmaps (Binance and Bitfinex) show $23,500 as the major short-term resistance.

Surpassing $23,500 should give BTC some more room for a rally.

Bitfinex whales appear to be bidding sells at around $23,800, which is where Bitcoin rejected yesterday.

Source: Tensor Charts

Bitcoin is in a difficult range to trade in my opinion because of the U.S. Treasury uncertainty.

Reports claim Steven Mnuchin, the United States Secretary of the Treasury, could introduce a rule regarding non-custodial or self-custodied wallets.

I personally have three swing positions open; one large-cap altcoin, a DeFi token in SushiSwap (SUSHI), and Bitcoin.

XRP saw a capitulation-esqe drop against Bitcoin. So when Bitcoin started recovering, the room for downside was small, and it made sense.

As for Bitcoin, I think it is at a weird place because of the $23,500~$23,800 resistance range.

Dips are compelling but trading here is a bit risky in my opinion. If I had no position open, I’d most likely wait for a bigger dip or a breakout above $23.5k. The $22.3k level is a short-term support level though.

I also have a SUSHI long. The XRP long was purely technical. I think SushiSwap has great fundamentals.

Chads at Coinbase have been aggressively listing DeFi tokens as of late. SushiSwap is a decentralized exchange and an Automated Market Maker (AMM), like Uniswap. The trading volume on SushiSwap surpassed $100 million today. It is far from Uniswap, but it is comfortably sitting in second place.

No one knows, but I feel like the logical DeFi listing on Coinbase would likely be SUSHI. Hence I’m holding the long longer than I like to. I might just leave stop at BE and let it run. It’s only a small position.

And of course, the SuhiSwap x Yearn.finance collaboration is a big positive factor for SushiSwap. Being in the Yearn.finance ecosystem is a big plus for the long-term sustainability of SushiSwap.

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