Welcome back Crypto Enthusiasts!

Glad to have you join us for another edition of the UseTheBitcoin.com newsletter.

Many interesting developments to keep an eye on this month as Bitcoin has some important dates coming up.

Without anymore waiting below are today’s top headlines!

📰 News Highlights:

🚀 Bitcoin Surges Above $45K: Anticipation Peaks for ETF Approval! 📈 (Link)(Link)

In an exhilarating start to 2024, Bitcoin soared above $45,000, marking its highest price in nearly two years. This surge comes on the heels of anticipation surrounding the potential approval of the first spot Bitcoin exchange-traded fund (ETF) in the United States.

Bitcoin's remarkable journey, climbing over 6% in the last 24 hours and 170% over the past year, symbolizes a significant milestone for the cryptocurrency. The market eagerly awaits the Securities and Exchange Commission's decision on the pending applications for a spot Bitcoin ETF, with the potential to reshape the crypto landscape.

The last time Bitcoin touched the $45,000 mark was almost 20 months ago, highlighting the resilience of the cryptocurrency after a prolonged bear market.

While analysts remain divided on the immediate impact of an ETF approval, the vibrant discussions on platforms like X indicate the community's diverse perspectives on Bitcoin's short-term and long-term trajectories.

🌐 Orbit Bridge Heist Shakes Crypto World on New Year's Eve! 💸 (Link)(Link)(Link)(Link)(Link)

As the world bid farewell to 2023, the crypto community faced a rude awakening with the Orbit Bridge exploit, propelling December's crypto losses to a staggering $100 million.

This breach marked the fifth-highest month for hacks in 2023, shedding light on the vulnerabilities within the crypto space. The cross-chain bridge exploit on Orbit Bridge, part of South Korean-based Orbit Chain, has ignited discussions about the security of cross-chain protocols. Orbit Chain's prompt response included requesting major global cryptocurrency exchanges to freeze the stolen assets, reflecting the urgency and collaborative efforts required in the aftermath of such incidents.

The Loot:

According to blockchain analytics platform Arkham Intelligence, the hackers made off with a staggering $81.68 million bounty:

• $30 million in Tether (USDT)

• $10 million in USD Coin (USDC)

• 9,500 Ether (ETH)

• 231 Wrapped Bitcoin (WBTC)

• $10 million in DAI

These ill-gotten gains now reside in several newly created wallets. Despite the unsettling breach, the broader crypto landscape saw a decline in losses compared to 2022. Blockchain security firms estimate the total crypto losses in 2023 range between $1.51 billion and $2 billion.

Notable months of September and November we witnessed over $700 million in losses, emphasizing the need for robust security measures in the evolving crypto ecosystem.

💼 VanEck Adviser Foresees Trillions in Bitcoin ETF Impact! 📉📈 (Link)(Link)

As the crypto community awaits the approval of spot Bitcoin ETFs, VanEck adviser Gabor Gurbacs provides a nuanced perspective on their potential impact. While Gurbacs acknowledges that the initial days may see modest inflows of around $100 million, he draws parallels with the launch of gold ETFs, emphasizing their transformative effect over the long term.

Gurbacs envisions the spot Bitcoin ETFs attracting trillions of dollars to the cryptocurrency sector, catalyzing a shift in institutional and governmental perceptions of Bitcoin. This insightful forecast adds depth to the ongoing discussions about the broader implications of ETF approval on Bitcoin's market dynamics.

The contrasting opinions within the crypto community, with some foreseeing a significant immediate price uptick and others adopting a more cautious "sell the news" stance, contribute to the vibrant dialogue surrounding this pivotal moment in Bitcoin's journey.

🤔 JPMorgan CEO Faces Criticism Over Bitcoin ETF Role! 🏦 (Link)(Link)(Link)(Link)(Link)

In a twist of irony, JPMorgan CEO Jamie Dimon finds himself under scrutiny after being named an authorized participant (AP) by BlackRock for its spot Bitcoin ETF.

Dimon's public anti-crypto stance clashes with JPMorgan's involvement as an AP, raising questions about the bank's alignment with the cryptocurrency sector.

Crypto enthusiasts on platforms like X express skepticism, highlighting the apparent contradiction between JPMorgan's participation in the ETF and Dimon's negative comments on Bitcoin's utility.

This development underscores the complexities of institutional involvement in the crypto space and adds fuel to the ongoing debate about the industry's integration with traditional finance.

🔍 Industry Insights:

🛠️ Ethereum's 2024 Roadmap Unveiled by Vitalik Buterin! 🚀 (Link)(Link)(Link)(Link)

Ethereum co-founder Vitalik Buterin unveils the roadmap for Ethereum in 2024, emphasizing continuity and minor adjustments compared to the previous year.

The roadmap encompasses six main components, including "The Merge," highlighting Ethereum's commitment to a resilient proof-of-stake consensus. Buterin's detailed chart provides insights into Ethereum's focus areas, such as single-slot finality, scalability, and privacy solutions.

The roadmap reflects Ethereum's strategic direction, acknowledging the need for ongoing improvements and innovations in the ever-evolving blockchain landscape.

As Buterin navigates through Ethereum's technical path forward, the community gains valuable perspectives on the platform's priorities, ensuring transparency and alignment with the broader goals of decentralization and blockchain innovation.

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📈 Technical Analysis:

The year 2024 began with a bang on the crypto markets, as soon as the first trading session of the year began, a flood of investors and traders flooded in, pumping the whole crypto market! In anticipation of an ETF clearance anytime between now and January 10, 2023. Except for a few bearish coins like ICP and LEO, the entire crypto market is green today.

Bitcoin Price Analysis

BTC began the day with a 1,500$ pump, pushing it beyond the prior resistance of 44,500$ and presently sits at 45,785$. The crucial pivot for this breakout is now at the previous barrier of 44,500$; if Bitcoin can turn that resistance into a support, we may see more upside reaching 47,000$-48,000$.

The drawback is that if it fails to hold that level and begins to deviate, the BTC price would most certainly go below 40,000 dollars, liquidating many top longs and ETF speculators.

The RSI is also beginning to overbought but I believe that if we chill off for a bit and just rebound on 44,500$, we will see it soar further higher, as we have seen with prior BTC pushes.

Both scenarios are depicted in the graphs above.

Bitcoin CME Futures Price Analysis

BTC1, or Bitcoin CME Futures, is the traditional finance equivalent of Bitcoin Futures; it offers a diverse range of contracts and trading leverage; it is primarily utilized in trading BTC options. The first trading day of 2024 began with a +9% move or +4240$, resulting in a large gap, as illustrated in the graphic below.

So, what effect does this chasm have? The gap, on the other hand, indicates that it will be filled, as we have seen in prior price action CME gaps tend to be filled over time. Nobody knows when such gaps will be filled, but the likelihood of such gaps being filled is high.

Ethereum Price Analysis

In comparison to Bitcoin, Ethereum is quite weak. It is currently up +2.79% or +65$, which is not much when compared to BTC, which is up more than 3% on the day. This just demonstrates that the primary subject at the moment is BTC ETF rather than ETH ETF, despite the fact that the Founder Vitalik Butern has been promoting its sluggish pace of 2023 and created an essay to boost the market or make it appear positive, it still has very little effect when compared to BTC.

I've highlighted the most important support and resistance levels on the chart above; if we ever bounce off of them, we might see an increase of up to $2700. But if we don't bounce back, 2100$ is the next support level to look for; Ethereum is presently trading at 2414$ at the time of writing.

ETH/BTC Price Analysis

ETHBTC, a comparison pair between BTC and ETH, is in a poor way because it has been showing a continuous bearish candle on the daily for 5 consecutive days.

It is currently sitting at a support level; we may see a bounce here as BTC cools down and ETH catches up to it; in general, if ETHBTC is down, most alts are also down or consolidating and showing weakness against BTC, though there are many exceptions with tokens with strong narratives outperforming the market.

Crypto Watchlist for the week ahead:

$ARB: started to show some strength. Stylus Upgrade + Ethereum's Dencun Upgrade + ARB Staking are its major catalysts

Arbitrum has been the talk of the town for the past week, ever since Andrew Kang published his thesis on the project. Arbitrum was once likened to its competitor Optimism, but today it is heralded that Arbitrum is where the builders are and Optimism is where the liquidity is. From a technical standpoint, Arbitrum is at an ATH barrier; if it breaks this, we may see the price move into more than $2, as long as BTC.D cools off a bit!

$METIS: On January 3, Metis's decentralized sequencer's community testing will go live.

METIS launched at a low price, with many CEX listings and early investors dumping into it, but the team continued to expand and perform better than its opponent. Their efforts are finally bearing fruit, as the price of their key sequencer upgrade rises. Although, on January 3, 2024, we may perceive this update as a sell the news event.

From a technical standpoint, we can identify a distinct support and resistance range. For a possible bearish situation, I've indicated numerous crucial levels for a bounce or acceptance below.

BTC Beta coins: if a spot ETF is approved, BTC-related coins like STX, BSV, or BCH should be the main beneficiaries.

The three tokens are mostly riding the BTC beta excitement, but the price action is extremely difficult to trade because they behave like shitcoins with no apparent technical rationale for a pump or dump.

Because of the extremely low liquidity and overall limited open interest, they all may be manipulated quite easily. On the photos below, I've emphasized the key crucial price area general structure. 

ETH Beta Coins: OP, ARB, LDO, ETHW.
Because Ethereum is underperforming the market, retail investors and whales are flocking to its beta coins. The current beta currency market is up more than 50% when compared to BTC, with ARB and OP leading the way!

This demonstrates the significance of these beta currencies in comparison to ETH.

Technically, these beta coins are about to break important levels potentially setting themselves up for runs up to new all time highs, with OP, ARB, and LDO reaching critical decision points.

In the images above, I've highlighted the main locations of these; it's vital to notice that these pivotal areas are located where they can be viewed as support, but failure to hold may also result in downside.

Disclaimer: The information on this article is not intended to be, and should not be interpreted as, legal, tax, investment, financial, or other advice. Nothing on this article constitutes a solicitation, recommendation, endorsement, or offer to purchase or sell any crypto assets or other financial instruments by UseTheBitcoin or any third-party service provider. We recommend that you only spend what you can afford to lose, and that you always seek independent financial advice if you are unsure. You should not buy any crypto assets unless you fully understand the nature of the transaction and the risks associated. 

😂 Crypto Meme of the Day: 

And that’s it for this today.

With all of the recent hacks taking place, remember to protect your crypto assets with today’s sponsor Trezor hardware wallets.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com