In recent times, the cryptocurrency landscape has experienced a widespread decline, yet the digital asset bitcoinsv, known for its associations with Craig Wright, has seen the most significant weekly downturn within the crypto sphere, dropping 18.9% versus the U.S. dollar in seven days. This decline in bitcoinsv’s value closely follows the verdict by U.K. Judge […]
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Ethereum Price Faces Many Hurdles, Downside Thrust Before Fresh Increase?
Ethereum price is struggling above the ,000 zone. ETH is slowly moving lower and there is a risk of a downside thrust toward the ,850 support.
- Ethereum traded to a new multi-month high above ,080 before correcting lower.
- The price is trading below ,000 and the 100-hourly Simple Moving Average.
- There is a connecting bullish trend line forming with support at ,965 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could resume its increase if it clears the ,025 resistance zone.
Ethereum Price Holds Support
Ethereum price extended its increase above the ,050 level, like Bitcoin. ETH traded to a new multi-month high above ,080 before there was a downside correction.
The price declined below the ,000 level. It seems like Ether bulls are struggling to keep the price above ,000. There was a move below the 23.6% Fib retracement level of the upward move from the ,830 swing low to the ,083 high.
Ethereum price is now trading below ,980 and the 100-hourly Simple Moving Average. However, the bulls are active near the ,950 zone. There is also a connecting bullish trend line forming with support at ,965 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the upward move from the ,830 swing low to the ,083 high.
If the pair stays above the ,950 level, it could attempt another increase. Immediate resistance on the upside is near the ,025 level. The first major resistance is near the ,050 level. The next major resistance is near ,085, above which the price might gain bullish momentum.
Source: ETHUSD on TradingView.com
In the stated case, Ether could rally toward the ,150 level. If there is a move above the ,150 resistance, Ethereum could even rise toward the ,250 resistance. Any more gains might call for a test of ,320.
Downside Break In ETH?
If Ethereum fails to clear the ,025 resistance, it could start a downside correction. Initial support on the downside is near the ,950 level.
The first major support is near the ,880 zone. The next key support could be the ,830 zone. A clear move below the ,830 support might send the price toward ,750. Any more losses might send the price toward the ,650 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 below the 50 level.
Major Support Level – ,950
Major Resistance Level – ,025
Market Alert: Ethereum Faces Potential Downfall As Dencun Upgrade Looms – Here’s Why
Ethereum (ETH) is poised for a notable improvement with the impending Dencun upgrade to enhance the network’s scalability. However, amidst this anticipation, QCP Capital, a seasoned crypto asset trading firm, has shed light on an emerging trend that might influence Ethereum’s price trajectory.
The firm’s analysis reveals a shift in “risk reversals” for Ethereum, turning negative for upcoming expiries. This shift indicates growing concerns among investors about a potential decrease in ETH’s price, as a negative risk reversal often suggests a market leaning towards protective measures against a downturn.
Market Leverage And Correction Concerns
Notably, this trend towards negative risk reversals has been attributed to an increased interest in put options, which serve as a hedge against potential losses for those speculating on price increases.
Moreover, the broader altcoin market participants are similarly hedging their investments in Ethereum, aiming to mitigate risks associated with their altcoin holdings.
QCP Capital’s insights into the market dynamics also highlight an underlying nervousness about Ethereum’s price stability, especially in light of the considerable leverage within the market.
The firm cautions about the potential for a market correction, albeit with an expectation of strong buying interest in the event of any price dips. QCP noted in the report:
Altcoin speculators might also be buying ETH puts as a proxy to hedge altcoin downside. This makes us wary of a possible correction given the amount of leverage in the market. However, we think that the market will buy any dip aggressively.
Additionally, Ethereum’s spot-forward spreads have decreased slightly, contrasting with Bitcoin’s sustained high spreads. Commenting on the implication for investors, QCP Capital stated:
A sharp drop in spot price is likely to drag the forward spreads lower as leverage longs get taken out.
Ethereum Performance And Outlook
Despite the cautionary signals, Ethereum continues to perform “robustly” in the crypto market, closely trailing Bitcoin regarding price movements. Currently trading above ,000, Ethereum has witnessed a modest increase of 0.6% over the past 24 hours.
Moreover, data from IntoTheBlock (ITB) reveals an encouraging statistic: over 94% of ETH addresses are presently profitable, suggesting a strong holding pattern among investors and a reduced likelihood of selling pressure. This scenario could potentially set the stage for a price uptick.
However, it’s important to note that Ethereum’s growth trajectory, while positive, has not mirrored the notable surge Bitcoin experienced following the approval of its spot Exchange-Traded Fund, indicating a more measured pace of appreciation for ETH.
Featured image from Unsplash, Chart from TradingView
Bitcoin Price Faces Big Move – Can Bulls Send BTC To $75K?
Bitcoin price is holding gains above the ,000 resistance. BTC is now showing positive signs and might aim for a move above the ,000 level.
- Bitcoin price extended its increase and tested the ,000 zone.
- The price is trading above ,500 and the 100 hourly Simple moving average.
- There is a connecting bullish trend line forming with support at ,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could continue to move up if it clears the ,850 and ,000 resistance levels.
Bitcoin Price Sets New ATH
Bitcoin price remained stable above the ,000 level. BTC gained pace and was able to extend its increase above the ,500 level. It even spiked above the ,850 resistance but the upsides were limited.
The price traded to a new all-time high at ,000 before there was a downside correction. The price declined below the ,000 and ,500 levels. A low was formed near ,660 and the price is again rising. There was a move above the ,000 level.
The price cleared the 50% Fib retracement level of the downward move from the ,000 swing high to the ,660 low. There is also a connecting bullish trend line forming with support at ,300 on the hourly chart of the BTC/USD pair.
Bitcoin is now trading above ,500 and the 100 hourly Simple moving average. Immediate resistance is near the ,000 level and the 76.4% Fib retracement level of the downward move from the ,000 swing high to the ,660 low.
Source: BTCUSD on TradingView.com
The next key resistance could be ,850, above which the price could rise toward the ,000 resistance zone. If there is a clear move above the ,000 resistance zone, the price could even attempt a move above the ,000 resistance zone. Any more gains might send the price toward the ,000 level.
Another Downside Correction In BTC?
If Bitcoin fails to rise above the ,000 resistance zone, it could start a downside correction. Immediate support on the downside is near the ,300 level and the trend line.
The first major support is ,000 or 100 hourly SMA. If there is a close below ,000, the price could start a decent pullback toward the ,650 level. Any more losses might send the price toward the ,500 support zone.
Technical indicators:
Hourly MACD – The MACD is now gaining pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.
Major Support Levels – ,300, followed by ,000.
Major Resistance Levels – ,000, ,850, and ,000.
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While bitcoin reached a 2024 high on Monday, rising above the ,000 per unit range, Coinbase suffered an issue again where customers were seeing zero balances. The news follows the issues Coinbase suffered on Feb. 28, 2024, when customers saw zero balances that day as well. Coinbase Users Encounter Zero Balance Bug Again Coinbase’s trading […]
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Terraform Labs Founder Do Kwon Faces Extradition Delay in Montenegro Amid SEC Fraud Allegations
Do Kwon, the embattled former CEO of Terraform Labs, is currently stranded in Montenegro due to extradition delays, following accusations by the U.S. Securities and Exchange Commission (SEC) of conducting a massive fraudulent crypto scheme. Last year, the SEC charged that from April 2018 to May 2022, Terraform and Kwon’s operations resulted in at least […]
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Avalanche Blockchain Faces Outage Amid Inscription Wave: AVA Labs Investigates
The Avalanche blockchain has encountered a disruption due to a “stall in block finalization.” AVA Labs’ co-founder, Kevin Sekniqi, suggested that the problem might stem from a recent surge in inscriptions. Avalanche Hits Snag as Block Finalization Stall Disrupts Service Avalanche (AVAX) is grappling with a service interruption, echoing challenges previously seen on the Solana […]
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Cardano (ADA) Faces Critical Sell Signal: Crypto Analyst Raises Alarm
In a recent technical analysis by crypto analyst Ali Martinez, known on social media as @ali_charts, a potential sell signal has been identified on the three-day chart for Cardano (ADA) against the US dollar. This analysis, shared on X on February 23, suggests caution among ADA traders due to the appearance of a bearish signal from the TD Sequential indicator.
Martinez’s chart showcases the TD Sequential indicator presenting a ‘9’ signal, a classic sell indication that suggests the current trend may be exhausted and a reversal could be imminent. This signal is highlighted on the candlestick that has been forming over the last three days, marked by a red rectangle surrounding a green candlestick.
The ‘9’ setup, traditionally seen as a sign to take profits or to prepare for a trend change, implies that ADA’s recent upward momentum may face a setback. The analysis further notes that this is not the first instance of such a signal appearing on Cardano’s chart.
Previous occurrences of the TD Sequential ‘9’ sell signal were followed by price corrections for ADA. Traders may be particularly vigilant now, as the chart indicates that the last two signals of this nature were succeeded by downward price action. Martinez remarked:
The TD Sequential indicator shows a sell signal on the #Cardano 3-day chart. It’s important to note that the last two times this indicator signaled bearish, ADA experienced a price correction!
How Low Could Cardano (ADA) Price Retrace?
As of February 23, 13:06 UTC, the ADA/USD pair shows a complex interplay between bullish and bearish signals on the daily time frame. The chart presents a constricted pattern following a descent from a local high.
The ADA price is currently trading at .5790. Importantly, the price is above the 20-day Exponential Moving Average (EMA) at .5733, the 50-day EMA at .5462, the 100-day EMA at .5065 and notably, the 200-day EMA at .4487. The positioning above these EMAs can be a sign of an underlying bullish sentiment in the market.
The Fibonacci retracement levels, drawn from the peak to the trough of the recent move, highlight significant levels of potential support and resistance. The 0.236 level at .5866 is immediately overhead, acting as a minor resistance level. The 0.382 level at .5203 and the 0.5 level at .4667 are key support zones to watch if a bearish reversal occurs.
A break below these levels could signal a deeper retracement towards the 0.618 level at .4131 or even the 0.786 level at .3368. However, the most crucial support at the moment is the 20-day EMA which could forebode a changing trend.
Notably, the volume has been relatively consistent, with a slight decrease in trading volume accompanying the recent price consolidation. This could indicate a lack of conviction among traders. Confirming this, the Relative Strength Index (RSI) is at 54, indicating neither overbought nor oversold conditions. The RSI trend is neutral, providing no clear directional bias at the moment.
In conclusion, while there are hints of bearishness, there are still good arguments to be bullish on Cardano and not wait for a larger correction. However, if the price does not hold above several key EMAs on the daily chart, the trend change could be confirmed.
Arbitrum (ARB) Faces Potential Selling Pressure As 1 Billion Tokens Become Unlocked In March
Arbitrum, the cryptocurrency network designed as a scalability solution for the Ethereum blockchain, has recently experienced a notable price correction, resulting in a drop in its native token, ARB. Over the past 24 hours, the token’s value dipped to .84, marking a retracement of 5%.
As February draws to a close, attention is now turning to the potential downside price action expected in March as a substantial number of ARB tokens are set to be unlocked.
Major Unlock Event Looms For Arbitrum
According to a recent announcement on X (formerly Twitter), more than 1.11 billion ARB tokens, estimated at .24 billion, are scheduled to be released on March 16, 2024.
This unlocking event signifies the beginning of a four-year phased unlocking process, which will gradually release a certain number of tokens every four weeks until 2027.
The total number of tokens in circulation for Arbitrum currently stands at 1.275 billion, meaning the unlock will release an equivalent of 87% of the circulating supply, nearly quadrupling it to 2.375 billion tokens.
Token unlocks, especially when they exceed the average daily trading volume, can act as bearish catalysts for token prices as they introduce additional liquidity into the market. This influx of tokens can create inflationary pressures, leading to increased volatility and speculative trading.
However, to fully understand the potential impact on ARB, it is crucial to examine historical data that sheds light on the token’s price performance following previous unlocks.
According to Token Unlocks data, there has been only one cliff unlock event for ARB tokens in the past. Analyzing the price impact that followed this unlock provides valuable insights.
On the first day after the unlock, the price of ARB experienced a 3% increase, indicating positive market sentiment and initial demand. Subsequently, the token’s price gradually declined, reaching a low of -21% approximately 21 days after the unlock event.
However, at around the 25-day mark, the price began to recover significantly, skyrocketing by 19% above the unlock-day level.
These historical patterns suggest that while ARB may face initial downward pressure following the upcoming unlock, there is a potential for recovery and positive price movement in the following weeks. Nevertheless, it is important to note that market conditions and investor sentiment can vary, and past performance may not necessarily indicate future outcomes.
ARB Price Analysis
In the event of a potential 20% price decline from the current level of .84, ARB may face selling pressure and a lack of demand. To safeguard its current all-time high (ATH) of .4, bulls must defend major support walls.
Forecasting a potential dip to around .44, the next crucial support level for bulls to monitor is .42. This support level would be the last line of defense before a potential further decline to the subsequent support line at .25. If both levels fail to hold, the mark would be at risk, with the last support for bulls at the .102 level.
It is important to note that the token unlock event’s outcome and ARB’s subsequent price action remain uncertain.
Additionally, the crypto market is bracing itself for the Bitcoin (BTC) halving event, which could introduce additional volatility to the overall market as the event draws nearer.
Featured image from Shutterstock, chart from TradingView.com
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