In the intricate world of cryptocurrency, not all algorithms are forged equal. The proof-of-work (PoW) consensus algorithms like Kheavyhash, Scrypt, Blake3, SHA-256, and Ethash are the linchpins that not only secure but also empower the blockchain with the integrity and trust that underpin several of today’s leading digital currencies. Understanding Proof-of-Work and Its Variants Proof-of-work […]
Bitcoin News
Bitcoin Price Faces Potential Dive: Key Support Levels to Monitor
Bitcoin price failed to recover above the ,500 resistance zone. BTC is showing bearish signs and might decline again below the ,000 support.
- Bitcoin struggled to recover above the ,200 and ,500 levels.
- The price is trading below ,000 and the 100 hourly Simple moving average.
- There is a major bearish trend line forming with resistance at ,850 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair might start another decline unless there is a close above the ,000 resistance zone.
Bitcoin Price Remains At Risk
Bitcoin price started a recovery wave above the ,200 zone. BTC even attempted a move above the ,000 resistance zone. However, the bears were active near the ,500 zone.
A high was formed at ,454 and the price is now moving lower. There was a move below the ,500 level. The price declined below the 23.6% Fib retracement level of the upward move from the ,448 swing low to the ,454 high.
Bitcoin price is trading below ,000 and the 100 hourly Simple moving average. There is also a major bearish trend line forming with resistance at ,850 on the hourly chart of the BTC/USD pair.
The price is now stable above the 50% Fib retracement level of the upward move from the ,448 swing low to the ,454 high. If there is another increase, the price could face resistance near the ,500 level. The first key resistance is near the ,850 level and the trend line.
The next key resistance could be ,000. A clear move above the ,000 resistance might start a steady increase and send the price higher. In the stated case, the price could rise and test the ,500 resistance. Any more gains might send BTC toward the ,500 resistance in the near term.
More Losses In BTC?
If Bitcoin fails to climb above the ,000 resistance zone, it could start another decline. Immediate support on the downside is near the ,450 level.
The first major support is ,000. The next support is now forming near ,500. Any more losses might send the price toward the ,500 support zone in the near 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 below the 50 level.
Major Support Levels – ,500, followed by ,000.
Major Resistance Levels – ,000, and ,500.
Red Alert For Bitcoin: Network Hashrate Takes A 20% Dive
The post-halving world of Bitcoin continues to throw curveballs. After a hashrate surge to celebrate the block reward reduction in April, Bitcoin’s computational power has taken a nosedive, dropping 20% in recent weeks.
This unexpected decline has ignited a debate among analysts, with some sniffing out a fire sale and others urging caution.
Bitcoin: Hashrate Hiccup Or Miner Exodus?
Hashrate, a measure of the combined processing power dedicated to securing the Bitcoin network, typically climbs after a halving event as miners invest in more powerful rigs to compete for the reduced rewards.
However, this time around, the trend defied expectations. Experts like Maartunn, a pseudonymous analyst at CryptoQuant, believe this signals a potential “miner capitulation.”
Less efficient miners are now likely throwing in the towel. The halving, which cut block rewards in half, squeezed profit margins for miners using older equipment. As these miners shut down their operations, the hashrate dips.
Hash Ribbons Flash Warning Sign
Supporting Maartunn’s theory is a technical indicator called Hash Ribbons. This metric tracks the difference between short-term and long-term hashrate averages. When the gap widens, it suggests a decline in mining activity, potentially due to less efficient miners dropping off.
The recent hashrate plunge has triggered a spike in Hash Ribbons, historically a sign of miner capitulation that has often coincided with price lows for Bitcoin.
Bitcoin Miners Selling Off?
Further fueling the capitulation theory is a decrease in Bitcoin’s Miner Reserve. This metric tracks the amount of Bitcoin held in wallets associated with miners. A decline in the reserve suggests miners might be offloading their mined coins, potentially to cover operational costs or to exit the market altogether.
Undervaluation Signal Or Cyclical Dip?
Maartunn interprets these signs as a bullish indicator. Hash Ribbons often point to opportune moments to buy, he argues. Backing his claim is the Market Value to Realized Value (MVRV) ratio, which suggests Bitcoin might be undervalued.
This metric compares the current market price to the average price at which all Bitcoins were acquired. A negative MVRV, like the one Bitcoin currently has, suggests the asset is trading below its historical cost basis, potentially indicating a buying opportunity.
Related Reading: Buckle Up, XRP Fans: Analyst Eyes Price Explosion To .65 In Next 5 Days
Not Everyone On The Capitulation Train
However, not all analysts are convinced. Some argue that the hashrate decline could be temporary, perhaps due to factors like extreme weather events disrupting mining operations in certain regions.
Additionally, the post-halving period is typically one of adjustment for miners, and a short-term hashrate fluctuation might not necessarily signal a mass exodus.
The post-halving Bitcoin landscape is still unfolding. While the hashrate decline and other signs suggest a potential buying opportunity, particularly for long-term investors, the situation remains fluid.
Featured image from Shutterstock, chart from TradingView
Whales Dive In, But Dogecoin Price Sinks 20%: What’s Going On?
Dogecoin (DOGE), the Shiba Inu-faced darling of the 2021 memecoin frenzy, has found itself shivering in the current crypto winter. Once a symbol of retail investor exuberance, DOGE has plummeted over 70% from its sky-high peak, leaving its future shrouded in uncertainty.
DOGE Feels The Crypto Frost
While Bitcoin, the heavyweight champion of the crypto world, grabs headlines with its recent wobble, the impact on memecoins like DOGE has been brutal. Unlike Bitcoin’s divided analyst opinions, the sentiment surrounding DOGE is decidedly bearish.
At the time of writing, the memecoin was trading at .132, down 5.4% up the last 24 hours but sustained a 20% loss in the last seven days, data from Coingecko shows.
Is DOGE A Canary In The Crypto Coal Mine?
Some analysts believe DOGE’s struggles are a canary in the coal mine for the entire crypto market. They said if even a historically high-flying memecoin like Dogecoin can’t hold onto gains, it raises serious concerns about risk appetite in the crypto space in general.
Whales Accumulating DOGE: A Glimmer Of Hope?
However, a glimmer of hope flickers for the dethroned meme king. On-chain data suggests an increase in large wallet purchases of DOGE, hinting at potential accumulation by wealthy investors. This “contrarian” behavior could be a sign that some whales are using Coinglass or similar platforms to track Dogecoin derivatives and believe the coin is undervalued and ripe for a comeback.
Coinglass, a popular cryptocurrency data provider, offers insights into factors that might be influencing the whales’ decisions. By analyzing metrics like open interest, funding rates, and liquidations on Coinglass, these investors might see an opportunity to buy DOGE at a discount.
Related Reading: Solana Crawls: Network Update Fails To Fix Traffic Jam, Price Feels The Pinch
In a similar development, Whale Alert, a well-known blockchain tracker, has reported that a DOGE whale arranged two large transactions in a single day. Some 150,000,000 Dogecoins were transferred in the first transaction, and an additional 76,316,694 DOGE were transferred in the second, for a total of almost 226 million DOGE. At the time, the meme cryptocurrency was worth around million in fiat money.
150,000,000 #DOGE (21,281,922 USD) transferred from #Robinhood to unknown wallethttps://t.co/7U1CEfr2ZT
— Whale Alert (@whale_alert) April 29, 2024
Can Dogecoin Thaw The Crypto Winter?
The coming weeks will be critical for DOGE. The return of positive social media sentiment, coupled with continued accumulation by whales who might be strategically using Coinglass for market analysis, could be the spark that reignites the DOGE rally. However, if the broader market weakness persists, DOGE’s summer might be spent shivering in the doghouse.
Featured image from Pixabay, chart from TradingView
Ethereum Fees Dive: Will This Spark A Surge In Network Activity?
Ethereum, the world’s second-largest cryptocurrency by market capitalization, has seen a dramatic drop in transaction fees, according to a recent analysis by Santiment, a prominent crypto analytics platform.
The report indicates that the average Ethereum transaction fee has plunged to a mere .12, marking the lowest daily average cost since October 18th, 2023.
Ethereum Transaction Fees: A Window Into Market Sentiment
This significant decrease in transaction fees has sparked discussions among crypto enthusiasts and analysts alike. Santiment’s analysis suggests a strong correlation between transaction fees and the overall sentiment within the cryptocurrency market.
The analysis highlights that periods of exuberance, often characterized by the “to the moon” narrative and a belief in exponential price gains, tend to coincide with higher transaction fees. Conversely, during market downturns dominated by pessimism, transaction fees typically fall.
#Ethereum‘s average fee level has dipped to just .12 per network transaction, the lowest average cost in a day since October 18th.
Traders historically move between sentimental cycles of feeling that #crypto is going “To the Moon” or feeling that “It Is Dead”, which can… pic.twitter.com/8b8rLMLyIf
— Santiment (@santimentfeed) April 28, 2024
Transaction fees serve as a fascinating window into the collective mood of the crypto market, analysts say. By tracking these fees, they can glean valuable insights into investor confidence and underlying demand dynamics.
Lower Fees: Cause For Concern Or Optimism?
The current low transaction fees present something of a conundrum for investors. On the one hand, they could indicate a decline in network activity, potentially reflecting a bearish market sentiment.
However, Santiment’s analysis offers a more optimistic perspective. The report proposes that the lower fees, coupled with the recent easing of network difficulty, could pave the way for a smoother recovery for Ethereum and other altcoins (alternative cryptocurrencies).
While the low fees might signal lower demand, they could also signify a welcome reduction in network congestion, analysts say. This, in turn, could potentially act as a catalyst for Ethereum’s price recovery, although it’s important to note that this might signal a faster turnaround than many anticipate.
Investor Takeaway: Data Is King In The Cryptoverse
The ever-changing landscape of the cryptocurrency market can be daunting for even seasoned investors. Santiment’s data-driven approach, with its emphasis on transaction fees as a sentiment indicator, offers valuable insights for navigating this volatile space.
The Road Ahead For Ethereum
While the analysis offers a compelling interpretation of the current situation, it’s crucial to remember that the cryptocurrency market is complex and influenced by a multitude of factors. The long-term impact of these low transaction fees remains to be seen.
Featured image from Pexels, chart from TradingView
Whale Alert: MATIC Poised For Epic Surge – Time To Dive In?
In the ever-volatile landscape of the cryptocurrency market, recent days have seen a surge in turbulence, with Bitcoin and leading altcoins struggling to maintain stability. Among them, MATIC, the native token of Polygon, hasn’t been immune to the downward pressure, experiencing a drop of nearly 2% in the past 24 hours alone.
As of the latest data, MATIC is trading at .69, marking a 21% decrease compared to the previous week.
MATIC: Whales Seize The Opportunity
Despite the market downturn, some seasoned investors are viewing this as an opportunity to stockpile MATIC at lower prices. Large holders, colloquially known as whales, have been particularly active during this period of volatility.
Notably, there has been significant accumulation of MATIC by whales, with one notable investor scooping up nearly 2 million tokens. This trend of accumulation is further evidenced by an uptick in the number of wallets holding substantial amounts of the altcoin, ranging from 1,000 to 10 million coins.
Which #altcoins did whales buy after the market dropped?
We noticed a fresh wallet withdrew .43M #altcoins from #Binance in the past 3 hours, including:
48,922 $AVAX(.86M)
621,003 $FET(.45M)
5.14M $GRT(.44M)
1.9M $MATIC(.41M)
532,444 $OP(.29M)
135,751 $RNDR(.26M)… pic.twitter.com/peeRi3E3nR— Lookonchain (@lookonchain) April 15, 2024
Additionally, large transactions worth more than 0,000 have increased significantly, indicating a concerted effort by whales to buy the dip.
Bullish Sentiment Prevails Among Whales
Whales remain steadfast in their bullish outlook for MATIC. Data shows that more than half of all whale positions for the crypto on Binance are long. This suggests that large investors are confident in the token’s potential for a short-term rebound. Their optimism is rooted in their belief in the underlying fundamentals of MATIC and its role within the Polygon ecosystem.
However, amidst the backdrop of price volatility, there has been a surge in negative commentary surrounding the coin. The Weighted Sentiment indicator reflects an increase in bearish sentiment, potentially influencing retail investors’ participation.
Negative discourse, particularly on social media platforms, can have a significant impact on market sentiment and investor behavior. Retail investors, often swayed by discussions and sentiment online, may be cautious in their approach to MATIC amidst the prevailing negativity.
Furthermore, Santiment’s data analysis corroborates the uptick in whale activity and accumulation of MATIC during the market downturn. Santiment’s insights provide additional context to the trends observed in whale behavior, offering valuable information for market participants.
While the cryptocurrency market grapples with uncertainty and price fluctuations, MATIC stands out as a focal point of activity. Whales are leveraging the market downturn to accumulate MATIC, expressing confidence in its future prospects.
Despite challenges posed by negative commentary, the bullish sentiment among whales underscores the resilience of MATIC within the broader crypto landscape.
Featured image from Pexels, chart from TradingView
Ethereum’s Dive To 3-Year Low Against Bitcoin, Is This A Bear Trap? Trading Guru Weighs In
Trading Guru Peter Brandt has recently commented on the Ethereum vs. Bitcoin chart, offering intriguing insights into market developments.
Brandt’s remark comes after his prior critiques of Ethereum, denigrating it as a “junk coin” and its proponents as “Etheridiots.” However, amidst Ethereum’s recent descent to its lowest position against Bitcoin in nearly three years, Brandt’s stance seems to have transformed.
Ethereum Plunges Against Bitcoin: A Bear Trap?
Upon analyzing the Ethereum-to-BTC chart, Brandt suggested the presence of a “bear trap,” indicating that the ongoing decline in Ethereum’s value compared to Bitcoin might entice sellers into additional short positions.
However, this could lead to an unexpected reversal, turning the apparent breakdown in support into a false signal.
Bear trap? That is always a possibility when price hits a new 35-month low. pic.twitter.com/aKQg9k7TcD
— Peter Brandt (@PeterLBrandt) April 8, 2024
Brandt’s observation of a potential bear trap highlights the complexities within the cryptocurrency market and the importance of considering multiple factors when analyzing price movements.
While Ethereum may be experiencing a period of relative weakness against Bitcoin, Brandt’s cautious optimism suggests that there may be opportunities for a reversal shortly.
Bullish Signals Amid ETH/BTC Downturn
Despite Ethereum’s recent challenges, bullish signals have emerged, hinting at a potential turnaround. The options market, in particular, has shown optimism, with a significant portion of Ethereum options open interest expiring by the end of April being bullish bets on price.
Deribit data reveals that about .3 billion worth of notional ether options are scheduled to expire, with approximately two-thirds of this sum allocated to calls. Moreover, the Ethereum put-call ratio for the April expiration stands at 0.45, signaling a slightly more bullish stance than Bitcoin options.
Notably, a put-call options ratio below one suggests bullish sentiment, with traders favoring call options over put options. Moreover, the emergence of two new Ethereum whales, according to the crypto tracking platform Spot On Chain, identified as 0x666 and 0x435, adds to Ethereum’s bullish sentiment.
These entities collectively withdrew a substantial amount of ETH from a major exchange, suggesting growing confidence in Ethereum’s prospects despite its recent downtrend.
While Ethereum faces downward pressure against Bitcoin, Bitcoin’s resilience in the market is evident. Crypto analyst Ali has highlighted that Bitcoin appears to be breaking out, with a potential upside target of ,000 if it can hold above ,800.
#Bitcoin appears to be breaking out! If $BTC can hold above ,800, the next target becomes ,000! pic.twitter.com/JPLf18KZvt
— Ali (@ali_charts) April 8, 2024
When writing, Bitcoin trades above this critical level with a current market price of ,621, indicating a possible climb towards ,000 shortly.
Featured image from Unsplash, Chart from TradingView
‘Dutch & Razzlekhan’ — A Cinematic Dive Into the Bitfinex Hack
The intricate saga of the Bitfinex heist, involving the disappearance of billion in bitcoin, is being adapted for film. “Dutch & Razzlekhan” aims to vividly depict the bold cryptocurrency theft that impacted the cryptocurrency sector in 2016. From Heist to Hollywood: The Bitfinex Billion Scandal Hits the Big Screen Directed by Jon S. […]
Bitcoin News
Can DOGE Avoid A Dive? Sell Pressure Puts Memecoin To The Test
Dogecoin (DOGE) has solidified its position as the eighth-largest cryptocurrency by market capitalization, leaving industry observers amused and sparking humor from Cardano’s founder, Charles Hoskinson. The memecoin experienced a substantial upswing, propelling its market cap to approximately billion, surpassing Cardano’s billion valuation.
Related Reading: Bitcoin On The Brink, Price Soars Above ,000 – Will BTC Break Its 2021 Record?
DOGE Market Dynamics And Technical Indicators
At the time of writing, Dogecoin was trading at .16, reflecting a remarkable 103% surge in the past seven days. This increase catapulted DOGE ahead of major cryptocurrencies like AVAX, DOT and TRON. Despite this positive momentum, technical indicators suggest a nuanced situation.
The Relative Strength Index (RSI) for Dogecoin stands at slightly above 67, signaling an overbought condition. While the price is on an upward trajectory, there is a possibility of susceptibility to a corrective phase. Meanwhile, the Chaikin Money Flow (CMF) at nearly 0.20 presents a mixed picture. A positive CMF indicates strong buying pressure, but an upward trend may also signify potential profit-taking, hinting at a possible sell-off.
Sentiment And Social Activity
Social dynamics appear to play a pivotal role in Dogecoin’s recent surge. The social volume, often linked with price movements, witnessed an uptick, indicating a positive correlation between growing interest and discussions around Dogecoin and its upward momentum.
Weighted sentiment, a crucial metric reflecting community sentiment, has shown an increase, with positive comments outweighing negative ones. This surge in positive sentiment adds fuel to DOGE’s positive momentum in the market.
Holder Metrics, Cautionary Signs
Despite the positive indicators, cautionary signs emerge as the rise in the percentage of short positions against DOGE reveals a cautious sentiment among traders. The increase in short positions suggests a bearish outlook, prompting investors to be mindful of potential impacts on the coin’s prices,
Industry Observations
The overtaking of Cardano by Dogecoin in market capitalization has drawn attention from industry observers, including Hoskinson. In a light-hearted manner, he declared the beginning of what many are calling “alt-season.” This observation adds a layer of industry perspective to the ongoing developments in the cryptocurrency market.
That moment Doge flips Cardano. It’s officially alt-season kids pic.twitter.com/cjNGNGKoi3
— Charles Hoskinson (@IOHK_Charles) March 5, 2024
Dogecoin’s recent surge to become the eighth-largest cryptocurrency brings a mix of excitement and caution. While positive sentiment, social activity, and industry observations contribute to its momentum, technical indicators and cautionary signs suggest a need for prudence.
Related Reading: FLOKI Grows Over 300% As Memecoin Breaches 0 Million TVL – Details
Featured image from Freepik, chart from TradingView
Celsius Dump Triggers Ethereum Dive: $35 Million Sell-Off Sends ETH Price Crashing
Celsius Networks, currently undergoing bankruptcy proceedings, has engaged in significant Ethereum transactions that are causing ripples within the digital currency landscape.
In the past 10 hours, on-chain analysts at LookonChain detected noteworthy transfers, including a 13,000 ETH deposit ( million) on Coinbase and an additional 2,200 ETH ( million) on FalconX. These transactions suggest a proactive stance by Celsius in addressing its ongoing financial challenges.
Celsius Sells 5M ETH, Maintains .3B Reserve
According to Arkham Intelligence, Celsius sold more than 5 million worth of Ethereum (ETH) coins between January 8 and January 12. The primary goal of this auction is to pay off creditors.
Dune Analytics also revealed a more widespread pattern of redemptions, with over .6 billion of staked Ethereum being redeemed during the same period. Since the Shanghai update last year, the amount of redemptions recorded is the highest.
The #Celsius wallet deposited 13K $ETH(.34M) to #Coinbase and 2,200 $ETH(.13M) to #FalconX again in the past 10 hours.
Currently, 2 staking wallets of #Celsius still hold 557,081 $ETH(.3B).
Address:https://t.co/3gGOucC9gYhttps://t.co/zodN4gzVHKhttps://t.co/Jjt9fCN2Ej pic.twitter.com/E9DIZ9KDAH
— Lookonchain (@lookonchain) January 23, 2024
Despite facing financial constraints imposed by the court, Celsius still holds a substantial Ethereum reserve. This reserve amounts to over 557,000 coins in two staking wallets, with a total valuation of approximately .3 billion. The size of this reserve adds a layer of complexity to Celsius’ current financial situation and underscores the evolving narrative within the crypto space.
As part of its obligations to creditors, Celsius has been actively liquidating its Ethereum holdings. These auctions, aimed at paying off outstanding debts, are integral to Celsius’ bankruptcy proceedings.
The market has responded to these Ethereum transactions, resulting in a 4% decline in the price of ETH. The cryptocurrency slipped below the ,350 mark, raising concerns among analysts, especially as ETH now wavers below its crucial demand zone ranging from ,380 to ,461.
Analysts predict that a failure to maintain this level could lead to a potential retreat towards the ,000 mark.
Wealthy Investors Trigger Ethereum Profit-Taking
Santiment’s historical data reveals that significant transactions by wealthy investors, commonly known as whales, often trigger profit-taking activities among regular ETH holders. This phenomenon intensifies selling pressure and contributes to price declines.
Meanwhile, decreasing funding rates suggest an underlying optimism in the market, hinting at a possible cooldown in previously overheated perpetual markets. This situation leaves room for ETH to rebound once the selling pressure subsides.
As the bankruptcy drama of Celsius unfolds, the scrutiny on its Ethereum transactions and the resulting market dynamics will persist. Investors and observers are closely monitoring the situation, eagerly awaiting further developments and anticipating the broader implications for both Celsius and the crypto ecosystem.
Featured image from Shutterstock