$HYPE
is a token traded in the crypto market, with utility focused on blockchain adoption within specific ecosystems like DeF, or community-driven use cases. Hyperliquid has recently achieved significant milestones in trading volumes, particularly in decentralized perpetual swaps. As of December 13, 2024, the platform’s cumulative perpetuals trading volume surpassed $500 billion, marking a 15-fold increase within the year.
In terms of daily activity, Hyperliquid recorded an average daily trading volume exceeding $5 billion, accounting for over 45% of the total on-chain perpetuals market. Notably, Ether (ETH) perpetuals led this activity, with a trading volume of $7 billion over a recent week, surpassing Bitcoin’s (BTC) $5.94 billion in the same period.
Based on H4 chart:
1. Liquidity Zones
• Sell Side Liquidity is observed around $25.401 and $20.832, indicating stop-loss zones or short positions that could be targeted by bearish price moves.
• Buy Side Liquidity exists near $35.845 and at 1.618 $42.093, suggesting potential areas for price surges if bullish momentum builds.
2. Price Structure & Tren
• The price is currently consolidating with potential for a breakout above resistance levels.
• The SMA 13 (yellow line) and SMA 21 (blue line) are attempting a golden cross, which typically signals the start of bullish momentum. However, further confirmation is needed to verify this trend.
3. Relative Strength Index (RSI)
• RSI is in the neutral zone near 50, indicating no significant bullish or bearish momentum yet. However, the upward trend in RSI suggests increasing buying pressure.
4. Price Movement Projections
• Bullish Scenario: If the price breaks above resistance at $35.654 and captures liquidity above the Buy Side Liquidity zone, the next target would be $42.016 (Fibonacci extension level 1.618)
• Bearish Scenario: If the price fails to hold above $25.401, it could retest the Sell Side Liquidity zone at $23.533 or even $20.832 as a strong support level.
Bitcoin (BTC) Fall Below $97,000 Could Open Doors for New Buyers
Despite numerous forecasts that Bitcoin’s (BTC) price could surge to $120,000 before year-end, the coin has encountered a setback, now trading below $97,000. However, historical data indicates that such pullbacks often present an opportunity for new Bitcoin buyers to accumulate.
If this pattern holds true, Bitcoin’s price could close the year on a higher note. This on-chain analysis reveals how this scenario might play out.
Bitcoin Presents a Rare Chance Again
Bitcoin’s price has dropped by 12% over the past seven days, likely due to increased selling pressure as the holiday season ramps up.
This pressure is reflected in the sharp decline of the Coinbase Premium Index, which gauges buying and selling activity in the US. A rising index signals strong buying pressure, while a decline indicates heightened selling.
Currently, the index points to significant selling pressure. However, in previous cycles, intensified selling often attracted new buyers eager to purchase Bitcoin at a discount. If this pattern repeats, BTC could experience renewed accumulation and potentially climb higher.
Bitcoin Coinbase Premium Index. Source: CryptoQuant
Interestingly, crypto analyst MAC_D also agrees with the sentiment, noting that the cryptocurrency might soon experience a bounce.
Furthermore, the rate of profit-taking among Bitcoin holders also supports this outlook. On December 16, the on-chain transaction volume in profit was over 250,000 BTC.
As of this writing, the value has decreased to 58,1000, indicating that the decline in Bitcoin’s price has forced investors to keep HODLing instead of liquidating their assets. Should this value continue to decrease, then a BTC rebound could likely occur.
Bitcoin Daily On-Chain Transaction Volume in Profit. Source: Santiment
BTC Price Prediction: Back Above $100,000 Soon
Based on the 4-hour chart, Bitcoin has found support at $92,888. As a result, the price has found another stronger support at $95,871. However, the Awesome Oscillator (AO) has remained negative, which suggests bearish momentum.
However, with green histogram bars appearing, BTC could evade another notable decline and trade higher. If that is the case, Bitcoin’s price could reach $104,299 in the short term. In a highly bullish market condition, the value could rise to $108,386.
Bitcoin 4-Hour Analysis. Source: TradingView
On the other hand, a decline below the support level mentioned above could invalidate this prediction. If that were to happen, Bitcoin’s price might decline to $92,144.
Bitcoin 4-Hour Analysis. Source: TradingView
On the other hand, a decline below the support level mentioned above could invalidate this prediction. If that were to happen, Bitcoin’s price might decline to $92,144.
Comparing $FUEL returns with other assets in my portfolio.
To compare the returns of $FUEL with other assets in your portfolio, consider the following insights based on recent trends and performance data in the cryptocurrency market:
1. Performance Trends
The overall cryptocurrency market has seen a resurgence, particularly with Bitcoin, which surged approximately 150% entering 2024. This bullish trend is expected to continue, driven by factors such as ETF approvals and upcoming halving events. In contrast, $FUEL's performance should be evaluated against these broader market movements to assess its relative strength.
2. Recent Gains
Other cryptocurrencies like Rexas Finance and Sui Network have shown significant returns recently, with Sui increasing by about 65% in the last month. If $FUEL has not matched or exceeded these gains, it may indicate underperformance relative to these assets.
3. Market Positioning
Bitcoin remains a reliable long-term investment, often compared to gold due to its scarcity and institutional interest. If $FUEL is positioned as a high-risk, high-reward asset, it's essential to measure its volatility and potential returns against more stable investments like Bitcoin or Ethereum.
4. Technical Analysis
Utilizing technical indicators for $FUEL can provide insights into its price movements compared to other assets. For instance, if $FUEL shows bullish patterns while others are stagnant or declining, it may present a better short-term trading opportunity.
5. Risk Assessment
Evaluate the risk-reward profile of $FUEL against other cryptocurrencies in your portfolio. If $FUEL exhibits higher volatility without corresponding returns, it may be worth reconsidering its allocation within your investment strategy.
6. Diversification Benefits
Including $FUEL in a diversified portfolio can mitigate risks associated with individual asset performance. Compare its correlation with other assets to determine if it provides a hedge or enhances overall portfolio volatility.
By analyzing these factors, you can make informed decisions regarding $FUEL's role in your portfolio relative to other assets and adjust your trading strategies accordingly.
Adjusting my strategy based on $FUEL market trends.
Adjusting your trading strategy for $FUEL based on recent market trends involves considering various factors highlighted in the current cryptocurrency landscape. Here are some insights and recommendations:
1. Bull Market Dynamics
The cryptocurrency market has recently entered a bull phase, primarily driven by the approval of Bitcoin ETFs and significant institutional investments. This trend is likely to continue into 2025, creating a favorable environment for altcoins like $FUEL. Traders should consider aligning their strategies to capitalize on this bullish sentiment by increasing positions in $FUEL during dips.
2. Impact of Bitcoin's Performance
Bitcoin's substantial gains (over 146% following its halving event) have historically influenced the entire crypto market. As Bitcoin approaches new price milestones, it often leads to increased interest and investment in altcoins. Monitoring Bitcoin’s performance can provide insights into potential movements in $FUEL, allowing traders to make informed decisions based on broader market trends.
3. Tokenization and Real-World Assets
The rise of tokenized real-world assets (RWAs) is reshaping investment landscapes and could benefit projects like $FUEL that focus on innovative applications of blockchain technology. Traders should keep an eye on developments in tokenization as they may present new opportunities for $FUEL, especially if partnerships or integrations emerge that leverage these trends.
4. Regulatory Environment
The evolving regulatory landscape under the current U.S. administration has led to increased market confidence. Initiatives aimed at integrating cryptocurrencies into traditional finance can enhance the appeal of $FUEL. Staying informed about regulatory changes and their implications for cryptocurrency will be crucial for adjusting trading strategies effectively.
5. Market Sentiment and Trading Volume
Increased trading volume often accompanies significant price movements, indicating heightened interest among investors. Monitoring trading volume for $FUEL can help identify potential breakout points or reversals, allowing traders to adjust their entry and exit strategies accordingly.
6. Long-Term Predictions
Analysts predict that the total cryptocurrency market capitalization could surpass $3.4 trillion, with altcoins benefiting from this growth. If $FUEL is positioned well within this expanding market, it may experience substantial appreciation. Traders should consider long-term holding strategies alongside short-term trades to maximize potential returns.
In summary, adjusting your strategy based on current trends involves capitalizing on the bullish market sentiment, monitoring Bitcoin's performance, leveraging developments in tokenization, staying aware of regulatory changes, and observing trading volume patterns. By integrating these insights into your trading approach, you can enhance your chances of success with $FUEL in the evolving cryptocurrency landscape.