Santa’s Pulling The Reins On The Gains

There’s only one chart we need to look at as a barometer of where things are, and that’s Bitcoin’s weekly chart. 📈

The Technically Speaking articles have been hitting hard at the gaps between the bodies of the candlesticks and the Tenkan-Sen. When there are large gaps, like there are now, from an Ichimoku perspective, it means the market is out of balance. 

A return to equilibrium must occur, and it happens in one of two ways: time or, the most common, price. A return to equilibrium via price action is just how it sounds: prices fall back to the Tenkan-Sen. But a return to equilibrium via time is also possible. 

In the time ‘retracement’ scenario, price consolidates, and the Tenkan-Sen plays catch-up and moves closer. 🪗

Now, I don’t want to be all doom and gloom here, but here are some of the technicals indicating at least a pause in further movement higher. 

1. Massive gaps between the candlestick bodies and Tenkan-Sen.
2. Eight consecutive weeks higher.
3. The current weekly candlestick pattern is developing into a very powerful bearish reversal pattern, the hammer. 
4. The Composite Index has flatlined at historical highs and is turning south. 
5. The Detrended Price Oscillator has hit historical highs and is turning south. 

So, where is the next support level if the rally sputters out and things retrace? 

The nearest support is the Tenkan-Sen at $39,505. After that, it’s a hugely strong support level at $34,850 where the Kijun-Sen and 50% Fibonacci extension sit. 

As we transition into the final week before Christmas, volume tends to die down, and more price action shenanigans are likely to occur. So keep those eyes open. 👀

Bloomberg’s ETF guru James Seyffart paints a picture where the SEC, led by Chair Gary Gensler, is cornered by recent legal developments. During TheBlock’s The Scoop podcast, Seyffart predicts an inevitable approval, especially after Grayscale Investments’ victory in converting its Bitcoin Trust into a spot ETF. ✌️

SEC Chair Gary Gensler hinted at a shift in the SEC’s stone-cold stance on spot ETFs. In a moment of revelation on CNBC, Gensler acknowledged that the commission is reassessing its position due to recent court rulings. 

Adding to this narrative, Bloomberg’s Eric Balchunas is optimistic, betting on a 75% chance of approval by year-end. Seyffart, not to be outdone, forecasts a green light by January 10, 2024. This anticipation has sparked a rally in the crypto market, with $BTC and friends like $ADA, $SOL, and $ETH partying hard, reminiscent of their 2022 glory days.

The crypto community is on the edge of its seats, eagerly awaiting the final act in this ETF approval drama. With the SEC seemingly softening its approach and the market responding with glee, it’s not just a question of if but when. 🪑

Ledger, the biggest name in crypto cold storage wallets, was in the crosshairs of some cunning hackers. These digital bandits weren’t messing around; they targeted the LedgerConnect kit. 🔏

Yesterday, Blockaid, blew the whistle on this caper:

🚨 We've detected a potential supply chain attack on ledgerconnect kit 🚨
The attacker injected a wallet draining payload into the popular NPM package.
This currently affects a couple of popular dapps including but not limited to https://t.co/2QJmKIGv9T

— Blockaid (@blockaid_) December 14, 2023

They revealed that these crafty hackers managed to implant a “wallet-draining payload” into Ledger’s NPM package. Hackers targeted anyone using LedgerConnect to manage or move their digital treasures. It was a supply chain attack – think of it as a heist that hits every bank in the city, not just one. They created a ripple effect by messing with Ledger’s NPM, potentially impacting all protocols across various blockchains.

As for Ledger, they were a bit behind the curve. The malware waltzed in at 9:44 am UTC and partied until around 1:35 pm UTC, when Ledger finally replaced it with a squeaky-clean version. But by then, the damage was done. Estimated losses are around $480,000 – but it could have been worse.

In a more reactive than proactive move, Ledger reminded its users to keep their eyes peeled before signing off on transactions. To add some muscle to the response, Paolo Ardoino, the head honcho at Tether, stepped in to block the Ledger Exploiter’s address. 🛑

The SEC *gasp* has firmly denied $COIN‘s request for new crypto rules. 🙄

Gensler, not one to mince words, gave a three-part sermon on why the SEC is turning a cold shoulder to Coinbase’s crypto rulemaking petition. He argues that the existing laws and regulations fit the crypto world perfectly. Secondly, the SEC is already busy crafting rules in the crypto realm. 

The SEC Chair also maintains that most crypto assets are, in essence, investment contracts and should be treated under federal securities laws. This stance holds, despite a U.S. court recently ruling XRP as not a security and the SEC continuing to list multiple tokens as unregistered securities in its legal crusades.

SEC Commissioners Mark Uyeda and Hester ‘Crypto Mom’ Peirce dissented. Peirce and Uyeda called for public roundtables, concept releases, and requests for comment to understand diverse perspectives in the market.

They highlighted the need to address issues arising from new technologies and innovations, viewing it as essential for responsible regulation. They suggested using the insights from public engagement to issue guidance or undertake necessary rulemaking. They expressed disappointment at the SEC’s reluctance to lead important conversations in the crypto space. 🤢