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Weekly Crypto Market Brief

by Paul Choufani,

Bitcoin continued its downward trend, forming lower highs and lower lows on the daily chart, while operating in the $46-51k price range. The Fear & Greed Index has remained very low, reflecting extreme fear levels, as uncertainty continues to grip the cryptocurrency market. Altcoins have been bleeding, with red candles dominating charts across Layer 1 & 2 coins. The selloff comes with the conflicting perspectives in terms of the direction of the market on a macro level, as the current correction has experts conflicted between a bullish reversal possibility and an impending bear market scenario. (SFUND), the famed launchpad token, had formed a bullish trajectory in stepwise fashion, consisting of successive pumps followed by periods of consolidation since July 2021. It reached a high of $17.90 on December 1, 2021, from a low of $0.32 per token on July 20, 2021, reflecting a massive 56x price increase. Although its correction since the beginning of the current month has been significant (37.5%), the recovery has been relatively quick, as it is currently trading and consolidating in the $12-15 range.

Metahero (HERO) experienced a heavy correction from its recent top, namely its all-time high of $0.267, registered on December 1, 2021. Its price collapse came after the complacency rally two days after the high, which sandwiched a bearish engulfing candle on the daily chart. Since then, the price has not held above the $0.22 level, and fell to a low of $0.136 on December 14, 2021. The correction represents a 49% drop from the high, and the token is trading at a support zone which was previously representative of the highs reached in early November 2021.

DigitalBits (XDB) also experienced a massive fall, dropping from its all-time high of $0.85 per token, reached on November 21, 2021, to its recent low of $0.273, on December 13, 2021. With a green candle being printed the following day, the potential for a bullish reversal is present at the Fibonacci golden pocket (61.8-65%) zone upon retracement from its all-time high, following its meteoric 38x price increase from the $0.022 level it held in early July 2021.

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