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Bitcoin Threatens To Retreat To $60,000 As Bulls Seek Solid Ground
After a spectacular ascent to record highs, Bitcoin (BTC) is facing a reality check. The past week has seen a dramatic price correction, leaving investors wondering if this is a temporary setback or a sign of a more bearish future.
The world’s most popular cryptocurrency reached an intraday low of ,620 on March 17th, a significant drop from its recent peak above ,000. This pullback has triggered a wave of pessimism, with analysts pointing to declining profitability and a drop in daily active addresses on the network.
A Bearish Shadow Looms
According to analysts, investor sentiment has been hurt by a series of descending peaks and failed upturns, while selling pressure remains rampant as we approach the “weekly candle close.” This sentiment is echoed by data from IntoTheBlock, which shows a sharp decline in the number of addresses “In the Money,” signifying a decrease in overall profitability within the Bitcoin network.
Finding Support: A Beacon of Hope?
However, not everyone is hitting the panic button. Technical analysis suggests a potential support zone for buyers between ,000 and ,000. Popular trader Skew highlights this area as a possible turning point, while also acknowledging significant spot selling from major exchanges like Coinbase and Binance.
$BTC Spot Market Data Thread, in partnership @_WOO_X $BTC Binance Spot
Weekend spot buyer hereSpot Supply (K – K)
Spot Demand (K)Interestingly last bounce which was sold into also resulted in a stack of limit bids being quoted lower.
~ Keep an eye on those bids… pic.twitter.com/3PKHyddNlv— Skew Δ (@52kskew) March 17, 2024
Bulls On The Horizon: Are The Giants Awakening?
While the immediate future appears uncertain, some analysts remain bullish on Bitcoin’s long-term prospects. They view the current correction as a natural and healthy part of any bull run, pointing to historical data where similar pullbacks paved the way for further growth.
Related Reading: Bitcoin Crashes: Dip To ,000 Triggers Over 0 Million Liquidation Avalanche
Adding fuel to the fire of optimism is the potential return of institutional capital. The recent resumption of buying from US Bitcoin ETFs and the prospect of a significant influx of funds from hedge funds and investment advisors in the coming months are seen as potential catalysts for a rebound.
Thomas Fahrer, CEO of Apollo, a decentralized online cryptocurrency platform renowned for its comprehensive crypto reviews and analysis of ETF inflows, echoes sentiments regarding X.
Fahrer characterizes the current state as a “Bear Trap” and pinpoints the resumption of buying from US Bitcoin ETFs on March 18 as a potential catalyst for an upward surge in X’s value.
Related Reading: Forget Dogecoin, Shiba Inu Set To Become The Top Dog: Expert Predicts 0 Billion Market Cap
Emphasizing the significance of increased institutional acceptance, Fahrer anticipates a surge in liquidity within Bitcoin ETFs, suggesting that substantial capital inflows from institutional investors have yet to materialize.
The Verdict: Brace For A Volatile Week
This week will be crucial for Bitcoin. The coming days will be a test of the cryptocurrency’s resilience and its ability to overcome the current selling pressure. If bulls can regain control and positive sentiment prevails, a return to record highs remains a possibility. However, if the downtrend continues, Bitcoin could face a more extended period of correction.
Featured image from Pexels, chart from TradingView
Bitcoin Price Holds Ground But Risk of Pullback Keeps Rising
Bitcoin price failed again to clear the ,000 resistance. BTC is now back below ,000 and there are chances of a downside break below the ,500 support.
- Bitcoin price is struggling to clear the ,000 resistance zone.
- The price is trading below ,000 and the 100 hourly Simple moving average.
- There is a connecting bearish trend line forming with resistance at ,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could gain bearish momentum if there is a move below the ,500 support.
Bitcoin Price Dips Again
Bitcoin price failed to start a fresh increase above the ,200 resistance zone. BTC settled below ,000 and slowly moved lower. There was a drop below the ,500 level.
The price even revisited the ,500 support zone. A low was formed at ,636 and the price is now attempting a recovery wave. There was a move above the ,000 level. The price spiked toward the 50% Fib retracement level of the downward move from the ,991 swing high to the ,636 low.
Bitcoin is now trading below ,000 and the 100 hourly Simple moving average. There is also a connecting bearish trend line forming with resistance at ,550 on the hourly chart of the BTC/USD pair.
Immediate resistance is near the ,550 level. The next key resistance could be ,800, above which the price could rise toward the ,500 resistance zone. It is near the 76.4% Fib retracement level of the downward move from the ,991 swing high to the ,636 low.
Source: BTCUSD on TradingView.com
The main resistance is now near the ,000 level. A clear move above the ,000 resistance could send the price toward the ,500 resistance. The next resistance could be near the ,200 level.
More Losses In BTC?
If Bitcoin fails to rise above the ,000 resistance zone, it could start another decline in the near term. Immediate support on the downside is near the ,100 level.
The first major support is ,500. If there is a close below ,500, the price could gain bearish momentum. In the stated case, the price could decline toward the ,200 support zone, below which the price might turn bearish in the short term.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – ,100, followed by ,500.
Major Resistance Levels – ,550, ,800, and ,500.
Grayscale’s Bitcoin Trust Sees Reduction Slowdown as New ETFs Gain Ground With Over 160,000 BTC Acquired
In the most recent update, Grayscale’s Bitcoin Trust (GBTC) experienced a decrease of 4,461.36 bitcoin, valued at approximately 0.53 million, over the past day. Since Jan. 12, 2024, GBTC has observed a cumulative reduction of about 124,967.54 bitcoin, equivalent to an estimated .33 billion. Meanwhile, the nine recently launched spot bitcoin exchange-traded funds have collectively garnered an impressive total of 160,661.38 bitcoin.
GBTC Sheds Almost 125,000 Bitcoin While 9 Fresh ETFs Gather Over 160,000
Recent trends indicate a slowdown in the outflows from Grayscale’s Bitcoin Trust (GBTC), with each trading day experiencing a smaller decline over the last two sessions. As of Jan. 30, 2024, data revealed that GBTC’s holdings dipped below the 500,000 BTC mark, registering at 496,573.81 BTC. However, in the past 24 hours, the holdings have further decreased by 4,461.36 BTC, bringing the total down to 492,112.45 BTC, currently valued at approximately .43 billion.
The recent reductions in GBTC have been notable, yet they pale in comparison to the substantial drop of 20,803 bitcoin observed on Jan. 26. From Jan. 12 to Jan. 31, 2024, GBTC’s reserves have shrunk from 617,079.99 BTC to 492,112.45 BTC, marking a significant loss of 124,967.54 BTC, according to current metrics. In contrast, Blackrock’s IBIT has seen growth over the past day, increasing from 56,629 BTC to 63,488.22 BTC, an uptick of 6,859.22 BTC.
As highlighted in their Jan. 31, 2024, daily holdings report, Fidelity’s FBTC has witnessed a rise, moving from 47,238 BTC to 53,802.34 BTC. Meanwhile, Ark Invest’s ETF, ARKB, has expanded its holdings to 15,175 BTC, an increase of 385 BTC in the last 24 hours. Bitwise’s BITB has seen a notable jump, going from 13,576.10 to 14,039.54 BTC. According to the latest assets under management (AUM) data, the Invesco Galaxy ETF BTCO is currently holding 6,898 BTC.
In other developments, Vaneck’s HODL ETF now contains 2,941.99 BTC, and Valkyrie’s BRRR ETF has a total of 2,635.29 BTC. Franklin Templeton’s holdings have climbed from 1,363 BTC to a present total of 1,421 BTC. As of Jan. 31, Wisdomtree’s BTCW ETF is holding 260 BTC. Collectively, these nine newly introduced spot bitcoin ETFs have amassed a significant 160,661.38 BTC, valued at .88 billion at the current market rate. Although the combined accumulation of these nine new ETFs is impressive, GBTC’s fund remains notably larger, being 3.11 times more valuable than the aggregate of all nine.
What do you think about the nine new ETFs collecting more than 160,000 bitcoin? Share your thoughts and opinions about this subject in the comments section below.
Ethereum Price Holds Ground As Indicators Suggest Rally To $2,800
Ethereum price climbed higher above the ,600 resistance. ETH outpaced Bitcoin and is holding gains above the ,580 support zone.
- Ethereum extended its increase above the ,650 resistance zone.
- The price is trading above ,550 and the 100-hourly Simple Moving Average.
- There is a key bullish trend line forming with support at ,590 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could start a downside correction if there is a move below the ,580 support.
Ethereum Price Eyes More Upsides
Ethereum price remained in a positive zone above the ,500 resistance. ETH even outpaced BTC and climbed above the ,650 resistance zone. A new multi-week high was formed near ,683 before the price corrected gains.
There was a move below the ,620 and ,600 levels. The price tested the 23.6% Fib retracement level of the upward move from the ,245 swing low to the ,683 high. There is also a key bullish trend line forming with support at ,590 on the hourly chart of ETH/USD.
Ethereum is now trading above ,550 and the 100-hourly Simple Moving Average. If there is a fresh increase, the price might face resistance near the ,640 level. The next major resistance is now near ,680. A clear move above the ,680 level might send ETH toward ,720. A close above the ,720 resistance could push the price further into a bullish zone.
Source: ETHUSD on TradingView.com
The next key resistance is near ,780. If the bulls push Ethereum above ,780, there could be a rally toward ,880. Any more gains might send the price toward the ,000 zone.
Downside Correction in ETH?
If Ethereum fails to clear the ,680 resistance, it could start a downside correction. Initial support on the downside is near the ,590 level and the trend line.
The first key support could be the ,465 zone or the 50% Fib retracement level of the upward move from the ,245 swing low to the ,683 high. A downside break below the ,465 support might send the price further lower. In the stated case, Ether could test the ,350 support. Any more losses might send the price toward the ,220 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – ,465
Major Resistance Level – ,680
Ethereum Price Recovers Ground But Upsides Might Be Limited Above $2,300
Ethereum price tumbled and spiked below ,000 on Kraken. ETH is now recovering above the ,200 level, but the bears might be active near ,300.
- Ethereum started a major decline and dived below the ,200 support.
- The price is trading below ,300 and the 100-hourly Simple Moving Average.
- There is a connecting bearish trend line forming with resistance near ,300 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise if there is a clear move above ,290 and ,300.
Ethereum Price Nosedives
Ethereum price struggled to settle above the ,400 resistance zone. ETH also started a major decline like Bitcoin and broke the ,200 support zone.
There was a sharp decline and the price even spiked below the ,000 support zone. A new yearly low was formed near ,860 and the price is now recovering losses. There was a decent increase above the ,000 and ,080 resistance levels.
The price climbed above the 50% Fib retracement level of the downward move from the ,430 swing high to the ,860 low. However, Ethereum is still below ,300 and the 100-hourly Simple Moving Average.
On the upside, the price is facing resistance near the ,290 level. The first major resistance is now near ,300. There is also a connecting bearish trend line forming with resistance near ,300 on the hourly chart of ETH/USD. The trend line is close to the 76.4% Fib retracement level of the downward move from the ,430 swing high to the ,860 low.
Source: ETHUSD on TradingView.com
A close above the ,300 resistance could send the price toward ,400. The next key resistance is near ,440. If there is a clear move above ,400, there could be a drift toward ,500. The next resistance sits at ,500, above which Ethereum might rally and test the ,620 zone.
Fresh Decline in ETH?
If Ethereum fails to clear the ,300 resistance, it could start a fresh decline. Initial support on the downside is near the ,200 level.
The first key support could be the ,080 zone. A downside break and a close below ,080 might start another steady decline. In the stated case, Ether could test the ,000 support. Any more losses might send the price toward the ,860 level.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is regaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 level.
Major Support Level – ,180
Major Resistance Level – ,300
Crypto Futures Razed To Ground As $659 Million Rekt With Bitcoin Crash
Data shows the cryptocurrency futures sector has gone through a mass liquidation event in the past 24 hours as Bitcoin has witnessed a sharp crash.
Crypto Futures Liquidations Have Added Up To 9 Million In Past Day
The cryptocurrency market has seen sharp price action during the past 24 hours. As is usually the case during such volatility, chaos has occurred on the futures side of the sector.
According to data from CoinGlass, almost 0 million in futures contracts have found liquidation on the last day.
“Liquidation” here naturally refers to the process that any contract undergoes when it racks up losses equivalent to a specific percentage of the position (which may differ between platforms). The exchange has to close it forcibly.
The above table shows that the longs took the brunt of this liquidation flush, as they saw contracts worth about 8 million decimated. This equals about 86% of the total liquidations in the past day.
The forceful closures have been so lopsided due to the sector observing a sharp drawdown following Bitcoin’s crash that took its price to as low as ,500.
It’s also visible in the table that about 3 million of the total liquidations came during the last twelve hours alone, which again lines up with price action as that’s when the market was most volatile.
Regarding the individual contributions from each of the different symbols, it’s no surprise that Bitcoin-related contracts occupied the largest share of the liquidations at about 8 million.
Generally, though, BTC makes up for a huge part of the total market liquidations, but this time, the asset’s percentage share isn’t too extraordinary. Ethereum (ETH) and Solana (SOL) are the next biggest contributors to the squeeze, with about 1 million and million in liquidations, respectively.
Historically, mass liquidation events like the one seen today haven’t exactly been a rare sight in the cryptocurrency sector due to the high volatility that most coins display on the regular and extreme amounts of leverage being easily accessible in many exchanges.
Recently, the interest in the derivatives side of the sector has become especially pronounced, as CryptoQuant Netherlands community manager Maartunn has talked about in a recent post on X.
As displayed in the graph, the Bitcoin futures volume has generally been higher than the spot volume during the last few years, but the gap between the two especially widened during the second half of 2023.
The indicator’s value saw some decline in the last couple of months of the year, but the recent values of the metric have still been quite high compared to the norm in the past.
Bitcoin Price
Bitcoin has seen some recovery since its initial crash, as the asset is now trading around the ,700 mark.