Binance CEO Richard Teng has given some advice for investors interested in getting into cryptocurrency. He provided three key tips for starting a crypto journey. “Explore and constantly reassess your strategy” was one of the three pieces of advice the Binance executive gave. Binance’s CEO Shares Tips for New Crypto Investors Binance CEO Richard Teng […]
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Is Bitcoin Getting Ready For An Explosive Breakout? These Analysts Believe So
The fluctuations in Bitcoin’s price have marked the tempo of the crypto market and the community’s sentiment. While some feel pessimistic about the rally slowdown, some analysts believe the flagship cryptocurrency is just getting ready to reach higher notes.
Next Stop: Bitcoin’s “Parabolic Upside”
Crypto analyst and trader Rekt Capital considers Bitcoin (BTC) is currently awaiting a period of consolidation. In an X post, the trader highlighted that, during the previous “Halvings,” BTC saw “Re-Accumulation Ranges.”
The analyst shared his chart for Bitcoin phases during the “Halving,” which he has previously used to explain BTC was at the “Last Pre-Halving Retrace” before April 19.
At the time, the analyst pointed out that the re-accumulation phase was next. Bitcoin went through one during the previous “Halving,” as seen in the chart.
The re-accumulation consisted of two consolidation periods followed by the “Post-Halving Parabolic Upside,” which saw BTC reach last cycle’s all-time high (ATH) of ,000.
Rekt Capital highlighted that, during this cycle, the flagship cryptocurrency has already experienced five re-accumulation ranges. Similarly to the last cycle, the latest re-accumulation phase seems to have started during the “Pre-Halving Rally” phase. Per the analyst, this will be followed by the “Parabolic Upside” if history repeats itself.
Analyst Mikybull seems to share a similar view to Rekt Capital’s, as he highlights that Bitcoin’s “parabolic rally is loading.” The re-accumulation breakout is set to be “explosive,” and “not many are prepared for this,” he added.
The analyst explained that “the RSI on a macro scale is at the same level as it was in 2017, which was followed by a huge rally to cycle top.” Based on this, he believes the current consolidation comes from institutions preparing “for a huge rally to cycle top.”
Analyst Sets Crucial Level For Bitcoin’s Breakout
A day before Bitcoin’s “Halving,” the cryptocurrency faced a correction that shredded 7% of its price in a few hours. BTC went from hovering between the ,000-,000 price range to trading below the ,000 support zone.
Since then, the largest cryptocurrency by market capitalization appears to have steadily recovered from the drop. Over the weekend, Bitcoin regained the ,000 support level before testing the ,000 one, which it reclaimed on Monday.
Over the last few days, BTC has hovered between ,000 and ,000. However, it has not been able to successfully test the resistance level set at the ,000 price range.
According to the crypto analyst Bluntz, Bitcoin’s most recent performance suggests that the price will continue to move sideways between the ,000 and the ,000 range.
However, he also considers that BTC is “gagging for a breakout soon,” as the chart displays a bullish pennant pattern forming. Per the analyst, “once we clear 67k,” the whole market will fly above the latest ATH.
As of this writing, Bitcoin is trading at ,665, a 7.5% increase from a week ago and a 66.22% in the last three months.
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Sovryn’s and BOB are offering early users a piece of the new Bitcoin economy. With the Bitcoin Halving less than a month from now, Bitcoin will get two significant technological additions: Rollups, which will allow an increase in user adoption, lower fees, and smart contract capabilities, and native Bitcoin tokens called Runes. These two additions […]
Bitcoin News
Goldman Sachs Says ‘Many of Our Largest Clients’ Getting Active in Crypto
Many of Goldman Sachs’ largest clients are ramping up their activity in the crypto space following spot bitcoin exchange-traded fund (ETF) approvals and BTC price recovery. “The recent ETF approval has triggered a resurgence of interest and activities from our clients,” said Goldman Sachs’ Asia Pacific head of digital assets. Goldman Sachs’ Clients Getting Active […]
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Getting Cheaper, Getting Higher? Ethereum Dencun Upgrade And The Potential For ETH To Rise Back Above $4,000
The highly anticipated Dencun upgrade for the Ethereum (ETH) ecosystem is on the horizon, promising to bring significant cost reductions and notable changes to Layer 2 (L2) networks. The update, scheduled for March 13, will introduce a new data storage system known as blobs, reducing congestion on the Ethereum network and driving key new features in various areas.
Ethereum Dencun Upgrade
As highlighted in a recent Bloomberg report, Dencun aims to reduce the cost of Layer 2 networks such as Arbitrum (ABR), Polygon (MATIC), and Coinbase’s Base by enabling previously costly transactions to become significantly cheaper.
In particular, transactions that used to cost can now cost as little as one cent, the report notes, while others that used to cost cents can be reduced to a fraction of a cent. This cost reduction is expected to improve the end-user experience greatly and is a significant improvement over previous upgrades such as the September 2022 “Merge.”
One of the most crucial aspects of the Dencun upgrade is the introduction of blobs, a new type of data repository for Layer 2 networks. Currently, Layer 2 blockchains store their data on the Ethereum network, leading to substantial storage costs passed on to applications and users.
However, with blobs, Layer 2s will store their data for a significantly shorter period, about 18 days, resulting in lower costs. While this shift sacrifices storing a complete record of all transactions forever, it frees up more space on the Ethereum network for other transactions, reducing congestion.
AI-Driven Trading Strategies
According to the report, introducing blobs through the Dencun upgrade also paves the way for using artificial intelligence (AI) in various applications. For example, games can incorporate AI-driven non-player characters, enabling advanced gameplay capabilities and a deeper experience.
In decentralized finance (DeFi), automated market makers can incorporate “complex trading strategies” driven by AI models. This newfound flexibility and complexity are expected to foster innovation and drive the development of advanced applications in the Ethereum ecosystem.
In addition, the Dencun upgrade is expected to reduce the operating costs of Layer 2 chains significantly. Previously, launching and operating a Layer 2 project required considerable venture capital backing. However, Bloomberg reports that with the cost reductions brought about by Dencun, small teams may be able to launch and maintain Layer 2 chains.
While the adoption of blobs and the associated cost advantages are expected to drive immediate benefits, it is worth noting that the cost of blobs may increase over time as demand grows.
How Could Dencun Boost ETH Price?
While the price of ETH has corrected by over 3% in the past 24 hours, resulting in a current trading price of ,916, the Dencun upgrade holds the potential to have a positive impact on its price.
The upgrade aims to significantly reduce costs for Layer 2 networks and enhance the overall user experience, making Ethereum a more appealing platform for decentralized applications (dApps) and other use cases. By lowering transaction fees and improving scalability, Dencun could attract more users and developers to the Ethereum ecosystem, potentially driving up demand for ETH tokens.
Despite the ongoing correction, it is worth noting that the current price of ETH is not far from its two-year high of ,084. However, it’s important to consider that the price has formed a double top pattern on the daily time frame for two consecutive days, which may present a near-term hurdle for ETH’s price. The market’s reaction and the ability of ETH to surpass its nearest resistance level remain to be seen.
Featured image from Shutterstock, chart from TradingView.com
Fetch.AI (FET) Surges 21%: Why This Rally Is Just Getting Started
Today, Fetch.AI (FET) is once again emerging as a stand-out performer. The price of FET has surged by an impressive 21% in the past 24 hours, rising to .63. Currently, this substantial uptick is positioning Fetch.AI as the top performer among the top 100 cryptocurrencies by market capitalization.
Fetch.AI is benefiting from the AI hype in the tech sphere. As AI continues to make headlines, projects that are seen as contributing to this future, like Fetch.AI, naturally attract attention and investment, riding the wave of AI hype to gain visibility and financial support in the crypto sphere.
The project aims to leverage AI to enable smarter, more efficient blockchain networks and applications, appealing to both investors and developers interested in cutting-edge technology. Furthermore, the broader market trends show a growing appetite for investments in technologies that promise to shape the future.
Fetch.AI Price Analysis: FET/USD
When examining the weekly FET/USD chart, it is evident that the momentum for the AI coin is strong. Earlier this week, FET broke its previous all-time high of .19. Notably, this puts Fetch.AI in an elite group of very few cryptocurrencies that have already surpassed their previous all-time high.
The chart shows a well-formed ‘Bull Flag’ pattern, a bullish continuation pattern, which has developed over the past weeks. This pattern is characterized by an initial strong upward movement in price, followed by a downward sloping consolidation phase, and then typically results in a breakout to the upside.
The flag pole formed from mid-October till mid-December 2023. During the consolidation phase, the FET price fell towards the 20-week EMA (red line), but was always able to hold it on a weekly basis. The breakout from the flag occurred on February 12.
Based on the bull flag poll, the projected target is a 290% increase from the flag’s bottom, which would place FET at around .00. Notably, this closely aligns with the 1.618 Fibonacci extension level at approximately .90.
Another bullish argument are the volume bars, denoting trading volume. This has shown a substantial increase coinciding with the price surge, suggesting strong buyer interest.
Moreover, the Relative Strength Index (RSI), a momentum oscillator that measures the speed and change of price movements, is currently at 72.5. While this puts the FET price slightly in the overbought territory (typically considered to be above 70), it is typical for the crypto market to overheat during a raging bull market.
This suggests that there might still be room for upward movement before the market considers FET overbought.
FET/BTC On The Weekly Chart
In the competitive arena of cryptocurrency pairings, Fetch.AI’s token has shown a remarkable performance against Bitcoin (BTC) on the weekly chart. The FET/BTC pair exhibits a notable increase of 47% in the current week.
Notably, the price action has reached a pivotal point, prompting the question: Is a phase of consolidation on the horizon or is Fetch.AI on the cusp of a massive breakout? FET/BTC is currently at 0.00002705 and thus slightly above the major resistance at 0.00002697. However, a weekly close above this threshold needs to confirm the trend.
A weekly close above this threshold could open the door for a 400% rally against BTC. In a bearish scenario, FET could be consolidating in the range between 0.00002650 and 0.00002014 before making the next major move.
Ethereum Price Climbs Toward $3,200 And Bulls Are Just Getting Started
Ethereum price is outperforming Bitcoin with a move above ,000. ETH is showing bullish signs and might soon climb above the ,200 resistance.
- Ethereum started a fresh increase above the ,000 resistance zone.
- The price is trading above ,050 and the 100-hourly Simple Moving Average.
- There is a key bullish trend line forming with support at ,080 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend its increase toward ,200 or even ,250 in the near term.
Ethereum Price Outperforms Bitcoin
Ethereum price remained stable above the ,880 support zone. ETH formed a base and started a fresh increase above the ,000 resistance. It gained nearly 5% and outperformed Bitcoin.
A new multi-week high is formed near ,121 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward wave from the ,907 swing low to the ,121 high. There is also a key bullish trend line forming with support at ,080 on the hourly chart of ETH/USD.
Ethereum is now trading above ,085 and the 100-hourly Simple Moving Average. Immediate resistance on the upside is near the ,120 level. The first major resistance is near the ,150 level.
Source: ETHUSD on TradingView.com
The next major resistance is near ,200, above which the price might gain bullish momentum. If there is a move above the ,200 resistance, Ether could even rally toward the ,280 resistance. Any more gains might call for a test of ,320.
Are Dips Supported In ETH?
If Ethereum fails to clear the ,120 resistance, it could start a downside correction. Initial support on the downside is near the ,080 level and the trend line.
The first major support is near the ,000 zone. It is close to the 50% Fib retracement level of the upward wave from the ,907 swing low to the ,121 high, below which Ether might test the 100-hourly Simple Moving Average. The next key support could be the ,960 zone. A clear move below the ,960 support might send the price toward ,920. Any more losses might send the price toward the ,860 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 – ,000
Major Resistance Level – ,120
Filecoin (FIL) Surges Another 9.3%, Are The Bulls Getting Ready For More?
Filecoin (FIL) has been among the top gainers during the current market rally. Throughout February, FIL has shown a formidable performance fueled by the bullish momentum and its partnership with a major blockchain.
This performance has analysts and important crypto actors predicting a potential bullish run around the corner for the decentralized storage network’s native token.
Should Filecoin Investors Get Ready For A Bull Run?
Pseudonym analyst and trader Crypto Breakout highlighted that FIL broke through a crucial resistance in the 3-day timeframe, signaling that the “bulls return with force.” The chart shared by the analyst illustrates a downtrend pattern in FIL’s price since 2022.
Two years ago, as the chart below shows, the token traded at before facing a pullback that shredded about 70% of the token’s value in the following months. By February 2023, the token recovered and broke through the resistance level before repeating a similar downtrend.
Since 2023, the price has remained well below this level, only breaking through the support zone once at the very beginning of 2024. Throughout January, FIL’s price had a turbulent performance, falling around 40%.
The price has picked up the crypto market uptrend, and, as the analyst highlights, it has been gaining positive momentum. The 3-day time frame shows that FIL has been following an upward trend that led to the token breaking through the crucial support zone this Friday.
As the post suggests, this break out of the downtrend could signal FIL’s “beginning of an epic bullish rally” and that investors should “get ready for exciting moves ahead.”
Renowned crypto analyst Ali Martinez made a similar prediction. Earlier this week, Martinez highlighted Filecoin moving within a parallel channel on the 3-day chart. He suggested a successful breakthrough from the .50 barrier could catapult the token’s price to .5.
Artur Hayes Predicts 0 As FIL Continues To Rise
After the token’s recent surge, BitMEX co-founder Arthur Hayes shared his FIL prediction. On an X (former Twitter) post, Hayes forecasted that FIL’s price would rally to 0, also calling the arrival of the bull market.
Welcome to the bull market. May all things AI related levitate. $FIL = 0
Yachtzee
pic.twitter.com/oggCeY8IGc
— Arthur Hayes (@CryptoHayes) February 23, 2024
Filecoin, a decentralized storage network, recently integrated with Ethereum’s rival Solana to make its blockchain history more accessible and usable. According to the announcement, the integration is a significant move away from centralized storage solutions, which seek to improve reliability and scalability in the Solana blockchain.
This move has considerably fueled the ongoing upward momentum for FIL. The token has shown a considerable performance in recent weeks, with FIL increasing 53.9% in the last two weeks and 67.7% in 30 days.
The token trades at .19 at writing time, representing a 9.6% surge in 24 hours and 39.0% in the last seven days. FIL is currently the 25th largest cryptocurrency by market capitalization, at .2 billion, a 12.38% increase from yesterday. Its trading activity also saw a recent rise, with its daily trading volume at 5.2 million, 44% more than the day before.
Bitcoin Whales Increase Holdings By 4.5%, Getting Ready For Rally?
Despite the recent market conditions that saw Bitcoin’s value dip below the critical ,000 mark, large-scale BTC holders, often called ‘whales,’ have demonstrated their confidence in the flagship crypto.
Crypto analyst Ali has shed light on this development via a post on X, indicating that these major investors have capitalized on the recent price correction to augment their Bitcoin portfolios.
Ali’s analysis revealed that about 67 new entities have joined the elite group of Bitcoin holders who own more than 1,000 BTC, marking a 4.50% increase in such holdings within just two weeks.
While some shivered with fear during the recent price correction, #Bitcoin whales were accumulating more $BTC!
Around 67 new entities now hold 1,000 #BTC or more, marking a 4.50% increase in two weeks. pic.twitter.com/tje3fhznRR
— Ali (@ali_charts) January 30, 2024
This move by the whales goes against the prevailing market sentiment. Despite the price volatility and uncertainties that have gripped the broader crypto space, it suggests a bullish outlook from these major players.
Bitcoin Resilience And Recovery: Factors At Play
In stark contrast to its recent price slump, Bitcoin has shown resilience, charting a course of recovery. The cryptocurrency has witnessed a surge of over 10% in value over the past week, with a notable increase of 3.2% in the last 24 hours alone, bringing its trading price to approximately ,412.
This upward trajectory is mirrored in the cryptocurrency’s trading volume, which has escalated from below billion to over billion in a single day, indicating renewed investor interest and market confidence.
The resurgence in Bitcoin’s price can be attributed to multiple factors, with the diminishing impact of Grayscale’s sell-off being a primary contributor.
Bloomberg analyst James Seyffart recently highlighted a milestone event where BlackRock’s Spot Bitcoin ETF, IBIT, nearly matched Grayscale’s GBTC regarding trading volume. This was a significant moment, as it marked the closest any spot Bitcoin ETF has come to challenging GBTC, which has long held the “liquidity crown” in the crypto spot ETF space.
The positive implications of this development for Bitcoin’s price are clear. With IBIT’s volume mainly consisting of inflows, it can potentially offset the outflow-dominated volume from GBTC.
Reduced Selling Pressure And Market Optimism
Notably, Grayscale’s conversion of GBTC to a spot Bitcoin ETF had been a key factor in Bitcoin’s drop below ,000 in the past week, leading to a wave of sell-offs from GBTC investors.
However, recent trends indicate a cooling off among GBTC investors in their rush to take profits. BitMEX Research, in a post on X, pointed out that GBTC had registered its lowest daily outflow since its launch day, amounting to 2 million yesterday.
Bitcoin ETF Flow – Day 12
GBTC flow data out
2m outflow
— BitMEX Research (@BitMEXResearch) January 29, 2024
This declining trend in outflows signals a reduction in selling pressure in the Bitcoin market, contributing to the cryptocurrency’s price recovery.
Adding to the positive sentiment, Glassnode co-founders Jan Happel and Yann Allemann, known as Negentropic on X, have recently noted that Bitcoin’s recent rise above ,200 has created substantial liquidity for long positions.
This situation suggests that Bitcoin is filling the liquidity void above the ,000 mark, which could lead to volatility and market shifts. Negentropic points out that approximately 9 million in liquidations have already occurred.
If Bitcoin maintains its upward trajectory, it could trigger further liquidations amounting to billion in short positions, potentially leading to a ‘short squeeze.’ This scenario, where short sellers are forced to exit their positions due to a rapid price increase, could catalyze further growth in Bitcoin’s value.
Featured image from Unsplash, Chart from TradingView
JP Morgan Reveals Likelihood Of Spot Ethereum ETFs Getting Approved
Now that Spot Bitcoin ETFs have been approved by the United States Securities and Exchange Commission (SEC), the crypto space anticipates more ETFs to enter the market, particularly Spot Ethereum ETFs.
Despite this, analysts at JP Morgan, an American multinational financial service firm, have revealed a less than optimistic outlook for the potential approval of Ethereum Spot ETFs.
Ethereum Spot ETF Approval Prospects
In a note to clients issued on Thursday, January 18, JP Morgan analysts led by Nikolaos Panigirtzoglou, the Managing Director at the financial service firm, expressed their reservations regarding the anticipated approval of Spot Ethereum ETFs by the SEC.
The analysts cited regulatory and judicial reasons as the basis for their prediction, asserting that the likelihood of Ethereum Spot ETF approval is no higher than 50%.
“While we are sympathetic to the above arguments, we are skeptical that the SEC will classify ether as a commodity as soon as May,” analysts at JP Morgan stated.
Just last week, the SEC delayed the approval of Fidelity’s Ethereum Spot ETF. The regulator postponed its decision date to March 5, 2024, stating it needed more time to evaluate Fidelity’s application. Additionally, the deadline for the SEC’s final decision on the Spot Ethereum ETF applications extends from late January to August 2024.
The most decisive date that would give the crypto space a better outlook on the potential launch of these ETFs is January 25, the deadline for Grayscale’s Ethereum Spot ETF application.
Earlier in June 2022, Grayscale took legal action against the SEC for its rejection of its Spot Bitcoin ETF. In August 2023, the asset management company emerged victorious in its lawsuit, after the US Columbia Court of Appeal ruled that the SEC was wrong to reject Grayscale’s Bitcoin ETF application.
With the SEC’s recent approval of Spot Bitcoin ETF after months of legal and regulatory challenges, many crypto enthusiasts anticipate a lengthy regulatory process before the potential approval of Spot Ethereum ETFs. If Ethereum Spot ETFs are accepted by the SEC, then it would offer investors an unprecedented opportunity to gain exposure to the cryptocurrency without the need to own it.
Why ETH Spot ETF Approval Hovers At 50%
Presently, the regulatory framework surrounding cryptocurrencies in the United States is still shrouded in uncertainty. This includes XRP, which suffered a lawsuit from the SEC after the regulator labeled it a security in 2020. Additionally, there have been many other cryptocurrencies the SEC has identified as a security.
The potential approval of Ethereum Spot ETFs generally hinges on the SEC’s classification of the digital asset, whether it is a commodity or a security. In January 2024, the regulatory agency approved Ethereum futures ETFs, ‘implicitly’ accepting Ethereum as a commodity.
If the SEC identifies Ethereum as a commodity, then the potential approval of an ETF application may be in sight. However, as JP Morgan analysts have stated, it may take a considerable amount of time before the SEC makes that decision.
The regulatory agency has continually taken an aggressive approach in its regulation of cryptocurrencies in the US. Following the approval of Spot Bitcoin ETFs, SEC Chairman Gary Gensler publicly declared that the agency still does not approve or endorse Bitcoin, labeling all cryptocurrencies as investment contracts subject to federal securities laws.