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Bitcoin Regains All Post-FTX Losses

Well, the market looked absolutely awesome earlier this morning – but that happy outlook quickly turned around as we got later into the trading day. 

If you’re looking for a couple of fundamental reasons why price got slapped around today, we’re going to look at one of those reasons in today’s Litepaper: Gemini is reportedly filing for bankruptcy. 

We’ve also got some lovely Technical Analysis looking at Bitcoin’s post-FTX recovery and what bullish and bearish analysts see coming up for crypto. 

Regarding today’s price action – you’ll notice that the Total Market Cap is at $922 billion. We’ll probably see some ping-ponging with price action before bulls can return to the much sought-after $1 Trillion level.

Here’s how the market looked at the end of the trading day:

Shiba Inu (SHIB)
$0.00001111
5.33%
XRP (XRP) $0.385 -2.46%
Bitcoin (BTC) $20,730 -2.87%
Bitcoin Cash (BCH)
$119.77
-3.10%
Dogecoin (DOGE)
$0.081
-3.23%
Ethereum (ETH) $1,525 -3.43%
Monero (XMR) $164.74 -3.78%
BNB (BNB) $289.67 -3.85%
Litecoin (LTC) $6.12 -4.54%
Uniswap (UNI)
$0.333
-4.88%
Altcoin Market Cap
$522 Billion
-2.52%
Total Market Cap $922 Billion -2.22%

Bitcoin Recovers And Whipsaws Featured Image

It’s hard to believe that just a little over two months ago, $BTC.X and the broader crypto market experienced the single largest WTF moment in crypto history: FTX’s collapse. 😲

When CZ Tweeted on November 6, 2022, that Binance would be offloading its entire $FTT.X stake, it triggered a swift collapse of the entire crypto market. 

Over a fifteen-day period, Bitcoin dropped from $21,300 to where it bottomed at $15,473 – a -27.36% drop. 

Fast forward to today, and Bitcoin has recovered all of the post-FTX losses and hit a new 4-month high. 

Click to enlarge.

Will Bitcoin continue to push higher, or will selling pressure return? There are arguments for both sides, but we’ll tackle the long and short-term outlook analysts see for the broader cryptocurrency market in Friday’s Litepaper. 👀


Genesis Global Capital Going Bankrupt? Featured Image

The Genesis vs. Gemini spat entered a new chapter today. 📓

The Block reported early this afternoon that Genesis creditors are negotiating terms for a possible Chapter 11 bankruptcy filing. 

One of Genesis’s biggest and most well-known creditors is the Winklevoss twins’ cryptocurrency exchange, Gemini. 

You can read more about the Gemini vs. Genesis spat in last Friday’s Litepaper.

Gemini reportedly formed a committee of other creditors to discuss terms, which reportedly include a forbearance period of one to two years, cash, and equity in Digital Capital Group (parent of Genesis, Grayscale, and CoinDesk).

We’ll keep you updated as this story evolves. 📰


Technically Speaking – January 18, 2023 Featured Image

There have been many ups and downs today, with many cryptocurrency traders skittish that a top may be in, and the nice run higher is about to reverse. ↕️

Polkadot

$DOT.X, like the rest of the crypto market, has been all over the place today. It was trading up +4.19% higher before giving up all of those gains and turning them into losses. 

Click to enlarge.

Polkadot’s chart shares many conditions similar to many of the top 25 cryptocurrencies (by market capitalization). 

  1. Broke out and closed above the Cloud on the daily chart. 
  2. Had large gaps between the bodies of the candlesticks and the Tenkan-Sen.

Analysts are watching several levels on Polkadot’s chart very closely. The first is the Chikou Span – which reacts to the same support and resistance levels as the current price action. 

Ever since the Chikou Span returned to the Cloud on January 14, it’s been testing the bottom of the Cloud (Senkou Span A) as support. 

The second level on analysts’ radar is the top of the Ichimoku Cloud – Senkou Span B ($5.90). Senkou Span B is the strongest level of resistance/support within the Ichimoku system. 

If there’s one condition neither bulls nor bears want, it’s for price to stay inside the Cloud. The Cloud represents indecision, volatility, and everything bad in the universe. It’s where trading accounts go to die.

Bulls want to see a daily at or above $5.91, which would put DOT above the Cloud. 🐂

Solana

Oof. The daily chart for $SOL.X is ugly if you’re a bull. 

Click to enlarge.

From an Ichimoku perspective, it’s no wonder that Solana has had difficulty moving higher since January 14. Just take a look at the top of the Cloud (Senkou Span B at $24.91). 

Not only is Senkou Span B the strongest support/resistance level within the Ichimoku Kinko Hyo system, but that strength is exacerbated when it stays flat for a long time. 

The current length of Senkou Span B’s flat condition is 33 days – the third longest in Solana’s history. 

In addition to Senkou Span B, bulls had to contend with the psychologically important $25 price level and the same gap problems discussed in Polkadot’s chart above. 

Now that price has returned to equilibrium by returning to the Tenkan-Sen, does that mean Solana will continue its drive higher? Some analysts don’t think so. 

The RSI returned to bull market conditions (overbought 80 and 90, oversold 50 and 40) and is currently falling out of the overbought levels and back into neutral territory. 

However, some conservative bullish analysts want to see Solana fall even lower to $16.62 for two reasons. 

First, a return to $16.62 would test the Kijun-Sen as support. 

Second, the RSI would likely fall near the 40 or 50 levels to test as support. If they hold, then conservative bulls see a strong probability of Solana making another swing higher. 🐻


Bullets

Bullets From The Day:

♟️ Playing chess can earn you Bitcoin? Announced yesterday, two new play-to-earn games were launched via a partnership between Zebedee (mobile payments) and Viker (mobile gaming). Bitcoin Scratch and Bitcoin Chess are the new P2E games. The games are available on iOS and Android. The two companies already have Solitaire and Soduku P2E games available. But don’t expect to be earning massive sats though – more like a few cents per session. Decrypt has more.

🤦‍♂️ The SEC accidentally doxxed the personal information of a crypto miner (Green) and its members. An e-mail forwarded by the SEC failed to bbc the e-mail addresses and names of 650 people. While it may not seem like a big deal that the names and e-mails of individuals were leaked, those in the crypto and mining space fear just the knowledge of a real name and e-mail is often enough to attack and/or hack a mining node. Thankfully, as of January 17, no hacks have been reported. More from Bitcoinist.

🪙 $COIN reached out to its customers in Japan and said they have until February 16, 2023, to withdraw any crypto and fiat on their platform. The exchange is terminating any future fiat deposits on January 20. Any cryptocurrency after February 16 will automatically be converted into Yen, and customers will need to reach out to the Legal Affairs Bureau. Coinbase’s closing of its Japanese branch is part of a broader round of cuts the world’s second-largest crypto exchange has planned since June 2022. Forkast has more.

😡 Digital Currency Group (DCG) just announced they’re suspending its dividend payouts. A letter to shareholders read, “In response to the current market environment, DCG has been focused on strengthening our balance sheet by reducing operating expenses and preserving liquidity. As such, we have made the decision to suspend DCG’s quarterly dividend distribution until further notice.” DCG is the parent of some of the crypto industry’s biggest entities: Grayscale, Genesis, and CoinDesk. More from Protos.


Credits & Feedback

Today’s Litepaper was written by Jon Morgan. Let him know how he did: