According to the latest data, 5.43 million was liquidated across crypto derivatives exchanges when bitcoin dipped below ,000. One analyst predicts that with the Mt Gox and German government sell-offs, “supply will likely outstrip demand.” Conversely, QCP Capital notes that despite the current crypto sell-off, the options market remains hopeful. Crypto Liquidation Tops 5M as […]
Bitcoin News
Bitcoin Price Dips Yet Stays Positive: Market Sentiment Remains Upbeat
Bitcoin price extended its increase above the ,500 resistance. BTC tested the ,000 resistance and is currently correcting gains.
- Bitcoin started a downside correction after it climbed toward the ,000 resistance zone.
- The price is trading below ,000 and the 100 hourly Simple moving average.
- There was a break below a connecting bullish trend line with support at ,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).
- The pair could start another increase unless the bears push it below ,900.
Bitcoin Price Starts Downside Correction
Bitcoin price remained stable above the ,500 level. BTC extended its increase above the ,200 and ,500 resistance levels. It traded to a new weekly high at ,984 and recently started a downside correction.
There was a move below the ,000 support zone. Besides, there was a break below a connecting bullish trend line with support at ,900 on the hourly chart of the BTC/USD pair. The pair even dipped below the ,500 support zone.
Bitcoin price is now trading below ,000 and the 100 hourly Simple moving average. A low was formed at ,922 and the price is now attempting a fresh increase.
There was a move above the ,200 level. The price climbed above the 23.6% Fib retracement level of the downside correction from the ,984 swing high to the ,922 low. The price is now facing resistance near the ,500 level and the 100 hourly Simple moving average.
The first major resistance could be ,950. It is near the 50% Fib retracement level of the downside correction from the ,984 swing high to the ,922 low. The next key resistance could be ,500. A clear move above the ,500 resistance might send the price higher. In the stated case, the price could rise and test the ,000 resistance.
If the bulls remain in action, the price could rise toward the ,800 resistance zone. Any more gains might send BTC toward the ,000 barrier.
Another Decline In BTC?
If Bitcoin fails to climb above the ,500 resistance zone, it could continue to move down. Immediate support on the downside is near the ,000 level and the trend line.
The first major support is ,500. The main support is now forming near ,500. Any more losses might send the price toward the ,150 support zone in the near term.
Technical indicators:
Hourly MACD – The MACD is now losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now below the 50 level.
Major Support Levels – ,900, followed by ,500.
Major Resistance Levels – ,500, ,000, and ,500.
Grayscale Battling Outflows And Lower-Cost ETFs, Q1 Revenue Stays Flat At $156M
Grayscale Investments, the issuer of one of the recently approved spot Bitcoin exchange-traded funds (ETFs) in the US, saw flat revenues in the first quarter of the year due to its decision to maintain fees on its flagship Grayscale Bitcoin Trust ETF (GBTC).
Grayscale Exceeds Expectations Despite Outflows
According to a shareholder letter from its parent company, Digital Currency Group (DCG), the operator of the Grayscale Bitcoin Trust recorded 6 million in revenue, showing little change from the previous quarter.
Since the GBTC trust’s conversion to an ETF in January, Grayscale has seen outflows of about .4 billion as investors appear to have shifted their assets to new, lower-cost funds offered by BlackRock and Fidelity, the leaders in the US ETF race in terms of inflows recorded since January.
While GBTC charges a 1.5% management fee, many of its competitors charge less than 0.3%, leading to outflows. In response, Grayscale announced plans in March to seek approval from the Securities and Exchange Commission (SEC) to spin off some of Grayscale’s assets into a new, lower-fee “Bitcoin Mini Trust.”
Despite the outflows, the Q1 revenue attributable to GBTC exceeded Grayscale’s expectations. The firm had previously anticipated outflows due to increased competition under the ETF wrapper. Grayscale previously charged a 2% sponsorship fee before the trust was converted.
The flat revenue was also attributed to higher average Bitcoin and Ethereum prices and a decrease in assets under management (AUM).
In contrast to Grayscale’s performance, all US spot Bitcoin ETFs have witnessed a total net inflow of over billion thus far. However, demand for these ETFs has recently declined amidst tightening financial conditions in the US, where the Federal Reserve (Fed) faces the challenge of addressing persistent inflation.
DCG Reports 11% Q1 Revenue Increase
Digital Currency Group, founded by Barry Silbert and the parent company of Grayscale, reported an 11% quarter-over-quarter increase in Q1 revenue to 9 million, primarily due to higher asset prices.
However, revenue growth lagged behind Bitcoin’s price appreciation, which rose more than 60% during the same period. In its letter, DCG attributed this disparity to lower GBTC sponsor fees, redemptions, and steady mining revenues at its Foundry subsidiary.
Foundry, DCG’s mining subsidiary, experienced a sequential revenue increase of 35%, propelled by staking and equipment sales revenue. Meanwhile, Luno, the company’s crypto exchange subsidiary, witnessed a 46% quarter-over-quarter sales boost, driven by a significant surge in trading volume.
At press time, Bitcoin is trading at ,100 and has recently encountered significant price volatility. These price swings have failed to establish a stable position above crucial price thresholds.
Featured image from Shutterstock, chart from TradingView.com
Bitcoin Tumbles on Hot CPI Data, But This Analyst Stays Ultra Bullish: Here’s Why
The better-than-expected United States Consumer Price Index (CPI) released on April 10 is already sending shock waves through the financial market. Bitcoin and most crypto assets are trading lower, extending losses recorded on April 9, weighing negatively against optimists.
United States CPI Data Came In Hot
According to Trading Economics data on April 10, CPI, a key economic metric for gauging inflation, rose 0.4% in March, pushing the annual inflation rate to 3.5%. Notably, this surpassed economist predictions and, most importantly, dashed hopes for the United States Federal Reserve (Fed) to slash rates aggressively this year.
However, amidst the market jitters, Matt Hougan, the CIO of Bitwise Asset Management, offered a contrarian perspective as fear permeated the Bitcoin and crypto market. In a post on X, Hougan downplayed the influence of the CPI data on Bitcoin’s long-term trajectory.
The executive argues that investors and traders should track other market factors like spot Bitcoin exchange-traded fund (ETF) inflows and rising government deficits. In Hougan’s assessment, these can strongly influence price, even lifting Bitcoin higher since they are currently aligned.
Time To Buy The Bitcoin Dip?
As such, even with the fall in BTC, the drop could offer potential buying opportunities for long-term holders. Some supporters believe the “hot” CPI data only exposes the vulnerabilities of fiat currencies. This would potentially drive investors to use Bitcoin as a hedge.
Moreover, this upbeat sentiment is backed by solid demand for gold, a store of value asset preferred by traditional finance investors. Analysts anticipate Bitcoin will follow a similar path as investors seek to protect value amid rising inflation.
Further bolstering the bullish sentiment is the possibility of a spot Bitcoin ETF launch in Hong Kong before the end of April.
The Hong Kong Securities and Futures Commission (SFC) has been assessing various applications. Leading Chinese asset managers have submitted some. If the product is approved, it could further channel more capital to BTC, boosting inflows from the United States.
When writing, BTC is steady but under pressure. April 9’s losses have been confirmed. The coin might track lower if bulls fail to push prices above all-time highs of around ,000.
Bitcoin remains in a broader bullish formation, technically moving inside a rising wedge. This bullish outlook will only be invalidated if prices tank below ,500 in the sessions ahead.
Bitcoin Stays Sub $70,000 As Hong Kong Readies April-End ETF Launch
The Bitcoin price has seen a notable fluctuation, briefly surpassing ,500 on Monday before dipping below the ,000 threshold on Tuesday. This movement can be attributed to a risk-off sentiment among investors, largely in anticipation of the latest US Consumer Price Index (CPI) figures today. Following a low of ,200 on Tuesday, Bitcoin managed a slight recovery, stabilizing above ,400 at the time of reporting.
Concurrently, the Hong Kong Securities and Futures Commission (SFC) has updated its registry of virtual asset management funds early on April 10. Notably, the SFC is poised to announce the inaugural list of four Bitcoin spot Exchange Traded Funds (ETFs) on April 15, as reported by Tencent News. This announcement marks a significant milestone, setting the stage for the ETFs’ launch on the Hong Kong Stock Exchange by the end of April. Despite the magnitude of this news, the immediate market reaction has been muted.
Hong Kong To Launch Spot Bitcoin ETFs By End Of April
According to a Tencent News report, Harvest International Asset Management and Huaxia Funds (Hong Kong) Limited have been officially approved to manage virtual assets, signaling their entry into the cryptocurrency sector in Hong Kong. This development is significant as it introduces mainland China’s leading public fund companies into Hong Kong’s virtual assets industry. Currently, there are 18 funds in Hong Kong authorized to manage cryptocurrency assets, with Harvest International and Huaxia Fund being among the first public funds to venture into this space.
Harvest International emerged as the pioneer in submitting a proposal for a spot Bitcoin ETF in Hong Kong as of January 26. Following this initial submission, both companies have now secured the necessary qualifications to issue cryptocurrency-related fund products, including Bitcoin spot ETFs. This move enables retail investors to access these products through the Hong Kong Stock Exchange.
The urgency to update the virtual asset management funds list stems from the SFC’s plan to unveil the first batch of Bitcoin spot ETFs by April 15. The initial batch was anticipated to include Huaxia Fund, Bosera Fund, and Value Partners Financial, alongside Harvest International. However, Bosera and Value Partners were notably absent from the updated list due to their lack of an independent responsible officer (RO) qualified in cryptocurrency asset management. These funds are reportedly collaborating with Hashkey Capital and VSFG, both qualified crypto asset management organizations.
In preparation for the ETF launch, some applicants, including Huaxia Fund, have been rapidly assembling dedicated teams and submitting their applications by early March. Huaxia’s swift approval by the SFC, achieved in just two weeks, underscores the rapid pace of development in this area. The application process for a Bitcoin spot ETF in Hong Kong involves extensive collaboration with over 20 institutions, including custodian banks and market makers.
Following the SFC’s approval, the Hong Kong Stock Exchange is expected to spend approximately two weeks preparing for the ETF launch. Notably, this move opens up the crypto sector to Chinese retail investors, coming three months after the US SEC’s approval of the first batch of Bitcoin spot ETFs on January 11.
At press time, BTC traded at ,484.
Ethereum Price Stays Bullish As Indicators Point To Fresh Upside
Ethereum price is signaling positive moves above the ,550 zone. ETH could gain bullish momentum if it clears the ,650 resistance zone in the near term.
- Ethereum started another increase from the ,500 support 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 ,550 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bullish momentum if it settles above the ,650 resistance zone.
Ethereum Price Could Accelerate Higher
Ethereum price remained strong above the ,500 zone. ETH formed a base and recently started a fresh increase above the ,600 resistance zone, like Bitcoin.
However, the bears are still active near the ,650 and ,680 resistance levels. A high was formed near ,654 and the price is now consolidating gains. It moved a few points lower and traded below the 23.6% Fib retracement level of the upward move from the ,491 swing low to the ,654 high.
Ethereum is still trading above ,550 and the 100-hourly Simple Moving Average. There is also a key bullish trend line forming with support at ,550 on the hourly chart of ETH/USD. The trend line is close to the 61.8% Fib retracement level of the upward move from the ,491 swing low to the ,654 high.
Source: ETHUSD on TradingView.com
On the upside, immediate resistance is near the ,630 level. The first major resistance is near the ,650 level. The next key resistance sits at ,680, above which the price might gain bullish momentum. In the stated case, Ether could rally toward the ,800 level. If there is a move above the ,800 resistance, Ethereum could even climb toward the ,880 resistance. Any more gains might call for a test of ,000.
Are Dips Limited In ETH?
If Ethereum fails to clear the ,650 resistance, it could start another decline. Initial support on the downside is near the ,600 level.
The first major support is near the ,575 zone. The next key support could be the ,550 zone and the trend line. A clear move below the ,550 support might send the price toward ,440. Any more losses might send the price toward the ,320 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 – ,550
Major Resistance Level – ,650
Despite Crypto Uptick, Paypal’s PYUSD Stays Quiet in the Top Ten Stablecoin Race
In the last day, the global trading volume has hit 3 billion, with stablecoins accounting for an impressive 3 billion of that total. Among the array of stablecoin assets tied to the U.S. dollar, Paypal’s PYUSD has emerged as a top ten player. Yet, despite the ongoing cryptocurrency market upswing, PYUSD has shown minimal activity […]
Bitcoin News
BONK Stays Alive In Top 100 List With 25% Single-Day Rally – Details
In a surprising turn of events, BONK, the self-proclaimed third biggest Doge-inspired meme coin, has roared back to life, notching an impressive 25% surge in the past 24 hours.
This dramatic price jump catapulted BONK back into the coveted top 100 cryptocurrency rankings, reigniting hope among its investors and sparking curiosity within the wider crypto community.
But what fueled this sudden rally, and can BONK sustain its newfound momentum? Let’s dissect the factors behind this comeback and explore the challenges that lie ahead.
BONK: From Near Extinction To Top 100 Revival
Just days ago, BONK’s future seemed bleak. The meme coin had been on a downward spiral, losing over 20% of its value in the last month and teetering on the edge of falling out of the top 100 list.
However, the winds of fortune shifted dramatically in the last few days, with BONK experiencing a meteoric rise that propelled it back into the cryptocurrency limelight.
Similar to its previous rally, BONK’s resurgence can be partially attributed to a broader market upswing. Bitcoin and Ethereum, the leading cryptocurrencies, saw significant gains, with Bitcoin rising by 4.6% and Ethereum by 3%. This positive sentiment undoubtedly played a role in boosting investor confidence in BONK.
However, internal developments within the BONK ecosystem also contributed to the rally. Recent updates to the BONK protocol, including increased utility for token holders and the launch of new community initiatives, seem to have revitalized interest in the project.
Additionally, BONK’s close association with the Solana blockchain, which itself experienced a 7.4% price increase, might have provided further support.
Technicals Flash Green, But Caution Prevails
From a technical standpoint, BONK’s current position appears promising. The token’s Relative Strength Index (RSI) sits comfortably at around 58, indicating healthy buying pressure. Moreover, trading above its 30-day moving average suggests potential for continued near-term growth.
Nevertheless, seasoned investors know that the world of memecoins is riddled with volatility. BONK’s all-time high of .00003416, reached in December 2023, stands a stark reminder of the potential for sharp declines.
Also, the token’s market cap of 1 million pales in comparison to its meme-coin rivals like Dogecoin and Shiba Inu, highlighting the need for wider adoption and sustained community engagement.
The Verdict: A Cautiously Optimistic Outlook
BONK’s recent 25% surge serves as a testament to the meme coin’s resilience and the power of community support. While riding the market wave and internal developments have provided a much-needed boost, the road ahead remains challenging.
Overcoming volatility, establishing itself within the meme-coin landscape, and attracting wider adoption are crucial hurdles that BONK needs to overcome to secure its place in the top 100 – and beyond.
Featured image from Adobe Stock, chart from TradingView
Bitcoin “Outlook Remains Bullish,” As Long As This Stays True: Analyst
An analyst has explained that the outlook for Bitcoin should remain bullish as long as the cryptocurrency’s price remains above this level.
Bitcoin Has Strong On-Chain Support Above ,800
In a new post on X, analyst Ali talked about the various BTC support and resistance levels from an on-chain perspective. In on-chain analysis, the strength of any support or resistance level depends on the amount of Bitcoin that the investors bought at said level.
The chart below shows what the distribution of the different BTC price ranges currently looks like based on the concentration of holder cost basis that they carry.
As displayed in the above graph, the ,800 to ,100 range hosts the acquisition price of most Bitcoin out of all the price ranges listed. To be more specific, about 2.4 million addresses acquired 1 million BTC within this range.
The cost basis is naturally of immense significance for any investor, as the spot price retesting can flip their profit-loss situation. As such, holders become more likely to show some move when a retest like this happens.
A holder in profit before the retest might tend to buy more when the retest happens, as they might believe this same level that proved profitable earlier would do so again.
On the other hand, loss holders might want to sell at their break-even level since they may fear the cryptocurrency going down again, putting them underwater again.
These buying and selling moves aren’t enough to move the market when just a few investors are making them, but if a large number of investors have their cost basis inside a narrow range, the reaction could become significant.
Since those above ,800 to ,100 range is dense with investors, it should be an essential on-chain range. The spot price is floating above the range so that these prices could act as a support barrier for the asset. Based on this, Ali explains, “as long as Bitcoin maintains its position above ,800, the outlook remains bullish.”
The chart shows that the Bitcoin ranges above the price aren’t carrying the cost basis of that many investors. This could imply that there isn’t much resistance ahead for the coin.
The analyst notes that this lack of major resistance also strengthens the potential for the cryptocurrency to stay at the current levels or push towards the higher ones.
BTC Price
Bitcoin has been gradually making its way back up after the recent crash, with its price climbing towards the ,800 mark. The below chart shows how the asset has performed during the last few days.
Bitcoin Whales Do $2.2 Billion Selloff, But BTC Stays Strong
On-chain data shows Bitcoin whales have sold .2 billion worth of BTC in the past week, but price has continued to hold strong so far.
Bitcoin Whales Have Distributed Around 50,000 BTC In Past Week
As pointed out by an analyst in a post on X, the BTC whales have been participating in some selling over the past week. The relevant indicator here is the “Supply Distribution” metric from the on-chain analytics firm Santiment, which tells us about the total amount of Bitcoin that the different investor groups are carrying in their combined wallets currently.
In the context of the current discussion, “whale” entities are of interest. These humongous investors are typically defined to be the addresses who carry between 1,000 to 10,000 BTC.
At the current exchange rate of the asset, this range converts to about .8 million at the lower end and 8 million at the upper limit. Due to the sheer scale of their holdings, the whales can carry some influence, and therefore, they can be entities worth tracking on the blockchain.
Now, here is a chart that shows the trend in the Bitcoin Supply Distribution specifically for these large holders over the past month:
As displayed in the above graph, the supply held by the Bitcoin whales has been showing a decline in the past week, after remaining stagnant for the preceding few weeks.
Most of the selling had come while BTC was still trading at the recent lows, suggesting that these were whales who had been panicking after BTC had failed its recovery run towards ,000.
In total, these humongous investors have shed about 50,000 BTC from their combined wallets during this latest selloff, which is worth almost .2 billion right now.
Despite this selling, Bitcoin has gone on to hit another local bottom and make a recovery push again, this time actually making a retest of the ,000 level (although the asset has slumped again since then, as it’s now trading below the mark once more).
Another analyst has also given a whale selling alert in a CryptoQuant Quicktake post, citing the data for the “exchange inflow mean,” which is an indicator that measures the mean amount of Bitcoin that’s being transferred to centralized exchanges.
Exchange inflows can be a sign of selling as investors generally use these platforms for this purpose. The mean value of these deposit transactions shooting up naturally implies that large entities like the whales are involved and potentially participating in a selloff.
From the chart, it’s apparent that this metric has seen a couple of spikes in the last two days, suggesting that the whales are still continuing to make moves towards selling.
BTC Price
At the time of writing, Bitcoin is trading around ,500, up 3% in the past week.