Crypto Market Pulse - January 13, 2025

LAST WEEK RECAP:

• U.S. non-farm payrolls increased by 256K in December, higher than 155K expected.
• The unemployment fell to 4.1%, lower than 4.2% expected. Microstrategy bought another 1,070 BTC with an average of $94,004. So far MicroStrategy holds a total of 447,470 Bitcoins, with an average cost of $62,503.
• U.S. DOJ cleared to sell $6.5B in Bitcoin seized from Silk Road.
• Canada’s PM Justin Trudeau resigns, pro-crypto conservative leader Pierre Poilievre expected to succeed.

LEGACY MARKETS – DXY

DXY keeps rallying after retesting the previous resistance level. This rally indicates ongoing strength in the dollar, potentially due to persistent economic conditions or a shift in market sentiment. Despite RSI showing signs of overbought conditions, the price momentum remains bullish, and there’s no immediate indication of a reversal.

LEGACY MARKETS – VIX

The Volatility Index (VIX) has remained within a defined range over the past few weeks, indicating that the market is in a period of relatively low volatility. However, there has been a gradual increase in daily fluctuations, signaling that market participants may be bracing for larger moves. This shift could imply growing uncertainty or risk aversion beneath the surface, despite the broader stability in equity markets.

BTC WEEKLY VIEW

BTC is showing signs that a potential top is forming. Despite a brief rebound in the previous weeks, the price movement has lacked the necessary volume support, and the rally was quickly absorbed by selling pressure, suggesting a lack of conviction among bulls at these levels. As a result, there are growing concerns about a possible short-term top forming around the current price levels with the 92k support zone being key to determining its next direction. A failure to hold above this level could signal a correction, while a stronghold and subsequent volume surge could open the door to further upside.

ETH WEEKLY VIEW

The recent rebound has not shown strong conviction, and ETH is currently struggling to gain momentum. As a result, it is finding it difficult to break through key resistance levels, while bearish sentiment seems to persist. The next significant support level to monitor is 2850, and if this level is broken, it could signal further downside for Ethereum.

ETH/BTC

ETH continues to display weaker price action relative to BTC and minimal volume increase.

TOTAL3 USD MARKET STRENGTH

TOTAL3 has recently tested the previous support level many times now and managed to hold again, but the overall performance remains weak. Despite the temporary rebound off the support, the rally was short-lived and quickly erased by subsequent selling pressure. This highlights a lack of sustained momentum or conviction from buyers.

TOTAL3 BTC MARKET STRENGTH

TOTAL3/BTC is consolidating as expected. While we are optimistic about the potential for a breakout to new highs, confirmation through price action and volume is critical. A decisive breakout would signal a shift in favor of altcoins, while failure to do so may lead to prolonged consolidation or even a retracement.

SUMMARY

• Last week, the crypto market faced pressure from rising U.S. Treasury yields and a stronger Dollar Index (DXY), as strong economic data reduced expectations for 2025 rate cuts.
• Bitcoin showed resilience by holding the critical $92K support level despite macro headwinds and the U.S. Department of Justice’s announcement of potential Bitcoin sales.
• Ethereum remained weak, with no significant increase in trading volume and its next major support level at $2850.
• Altcoins underperformed, with sharper declines across the board
• Looking ahead, rising yields and dollar strength are expected to weigh on the market, with sideways movement likely unless Bitcoin breaks support or policy clarity boosts sentiment.
  

DISCLAIMER:

The information in this report is for information purposes only and is not to be construed as investment or financial advice. All information contained herein is not a solicitation or recommendation to buy or sell digital assets or other financial products.

This post was prepared by Kairon Labs Trader Patrick Li and Travis Su.

Edited by: Marianne Dasal