Crypto Weekly: 1 – 7 November 2021
Social media titans, Facebook, have officially rebranded to Meta to better encompass what the conglomerate covers as it broadens its reach beyond social media into areas like VR, AR, AI, gaming, and Metaverse technology. This includes their hiring of 10,000 employees in the European Union to develop their metaverse platform as well as their plans to support NFT in a virtual marketplace with virtual goods that users can buy, sell, and exchange in conjunction with the company’s Novi Crypto wallet.
Following the announcement, NFT gaming tokens rallied sharply. These include prominent metaverse platform tokens like Sandbox and Decentraland, which rose by more than 100%, as well as numerous other NFT game tokens that benefited from the news.
NFT and blockchain technology will be crucial contributors to the growth of the Metaverse. They will be the gateway for payments and transactions on the virtual universe and function as a bridge between different platforms to help create a more interconnected Metaverse that can function together seamlessly.
However, the Metaverse is still in its infancy stage, and this latest surge in NFT and gaming tokens could be premature speculation rather than signifying any meaningful shift in token or platform fundamentals.
MicroStrategy continues to double down on Bitcoin in the third quarter of 2021, adding 8,957 BTC to their holdings, with the Michael Saylor-headed tech firm stating that they’re considering raising additional funds to continue acquiring more Bitcoin. MicroStrategy is the world’s largest publicly traded corporate owner of Bitcoin, with over 114,000 BTC on their books, worth a total of $7 billion and purchased at an estimated average price of $27,713. Given BTC’s current trading price, MicroStrategy would make nearly $3.75 billion in profit if sold today.
Similarly, Nayib Bukele, president of El Salvador, has announced that the country has added 420 BTC, purchased at an average price of $58,900, to their treasury. El Salvador has spent around $25 million for this purchase, bringing their total amount of BTC held to 1,120.
Meanwhile, Binance has revealed that the Binance Smart Chain surpassed 1.5 billion lifetime transactions within 14 months of its launch on August 31, 2020. According to BscScan, the daily number of transactions has exceeded the 10 million mark, just short of BSC’s all-time high of 13 million transactions earlier this year on July 29.
Finally, the Stellar Development Foundation has announced that global payments technology company Flutterwave will be using USD Coin (USDC) on the Stellar network to facilitate a new, efficient remittance channel between Europe and Africa.
Weekly Technical Analysis: 1 – 7 November 2021
BTC continues to stay above $60,000 despite failing to create new highs over the past week. While BTC is showing no signs of returning to an uptrend, traders could follow a short-term trading strategy and focus on buying and selling between support and resistance while BTC is trending sideways. Keep a close eye on the support level at $53,000; if the support cannot remain intact, we could see BTC reverse into a downtrend.
After setting a new all-time high, ETH has returned to a similar sideways trend, with support set at the $3,360 level. If this support can remain intact, ETH will look to create new highs and test resistance at $4,400.
The Sandbox (SAND)
SAND had a strong rally that pushed it to record highs before facing a correction. Keep an eye on the support level at 48 Baht. SAND will look to challenge resistance at 80 Baht and possibly even beyond if this support can remain intact. Despite SAND’s strong performance, traders are advised to exercise caution due to the associated volatility.
Smooth Love Potion (SLP)
SLP’s downtrend seems to be coming to an end as the support level at 2 Baht looks to be holding firm. If SLP can reverse into an uptrend, it will look to test resistance at the 2.86 Baht resistance level; however, traders should be ready to cut losses if the support level fails this week.
Trading and Investment Considerations For The Week
Despite not creating new highs, Bitcoin is able to remain above the $60,000 level, enabling the rest of the Crypto market to enter a boom period once again. Ethereum set an all-time high and is leading the charge for Smart contract platform tokens, allowing other altcoins like SOL and LUNA to follow suit and rally accordingly.
Another Smart contract platform to keep an eye on is Polygon. MATIC is sending signals of an upwards reversal but has yet to set new highs, unlike other altcoins. If MATIC’s trend remains positive, it may have a greater upside for profit than other tokens already in the middle of strong rallies.
NFT Game tokens faced heavy sell-offs by traders looking to lock in profits following the Metaverse-speculation fueled rally that drove prices upwards exponentially. These tokens remain in an uptrend, however, and many could continue to perform strongly this week. That being said, traders are advised to exercise caution when trading these tokens as they remain highly volatile and have yet to develop into a fully realized Metaverse.
Similarly, meme tokens like SHIB and DOGE underwent heavy sell-offs last week as investors shifted their funds and attention to NFT Game tokens instead. Despite SHIB’s trend remaining bullish and DOGE managing an upward reversal, the outlook on these tokens remains uncertain, and it remains to be seen if they can sustain their momentum this week.
The outlook of the overall digital asset market remains very positive this week. If BTC can stay above the $60,000 level in its current sideways-up trend, altcoins should continue to post strong performances. That being said, there is always a risk of a substantial correction that could wipe out profits suddenly. Traders are advised to manage their risk accordingly.
*Materials on Bitazza Weekly Newsletter are intended to be used and must be used for informational purposes only. The views, information, or opinions expressed are solely those of the individuals involved and do not necessarily represent those of Bitazza and its employees. The information contained herein is not intended to be a source of advice or financial analysis with respect to the material presented, and the information and/or documents contained in this website do not constitute investment advice.
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