BTC/USD & ETH/USD Key Updates
- Bitcoin experienced a sharp liquidation selloff on Monday but has since made a notable recovery, approaching previously set all-time highs.
- Microsoft shareholders voted against a proposal to add bitcoin as a reserve asset in the company's treasury.
- Ether faced a significant drop from the $4,000 resistance level but, similar to Bitcoin, managed to regain lost ground and is once again near that critical price point.
Cryptoasset Market Developments
- Microstrategy revealed the acquisition of an additional 21,550 BTC at a cost of $2.1 billion, increasing their total holdings to 423,650 BTC at an average price of $60,324 per token.
- Marathon Digital, trading under $MARA, secured funding through zero-interest conversions and purchased 11,774 BTC, valued at approximately $1.1 billion.
- On Monday, the crypto market witnessed the liquidation of $1.38 billion in long positions, marking the largest liquidation event since 2021.
- Tether has received recognition as an “accepted virtual asset” by the Financial Services Regulatory Authority of the Abu Dhabi Global Market.
- The New York Department of Financial Services approved Ripple's stablecoin, RLUSD, for launch.
- Binance entered into a partnership with USDC to help promote the global adoption of the stablecoin.
- Eric Trump gave a keynote address at the Bitcoin conference in Abu Dhabi, reiterating the commitment to positioning the US as the “crypto capital of the world.”
- Texas State Rep Giovanni Capriglione has introduced a bill aimed at establishing a strategic Bitcoin reserve for the state, with a commitment to hold its BTC for a minimum of five years.
- The US Consumer Price Index (CPI) matched expectations at 2.7% year-over-year, while the Producer Price Index (PPI) came in above expectations at 3.0% year-over-year.
- Last week, the European Central Bank, Swiss National Bank, and Bank of Canada all announced interest rate cuts.
Market Sentiment and Trends
The “Crypto Fear and Greed Index,” a key sentiment indicator, rose to 76 last week, reflecting a healthy and balanced uptrend. If the index approaches 90 in the coming weeks, it could signal an increased risk of a market pullback; however, the current reading does not suggest an imminent reversal:
Source: Alternative.me
Another metric for assessing market sentiment is the inflow of capital into exchange-based crypto investment vehicles, which remained robust over the last week. Prior to Friday's data release, Bitcoin ETFs recorded inflows exceeding $1.7 billion within just four days. Such inflows from traditional finance investors contribute incremental demand for Bitcoin, supporting its price trajectory as seen in recent weeks.
Source: Farside Investors
Bitcoin Technical Overview: BTC/USD Daily Chart
As of now, Bitcoin is trading around the $100K mark. The cryptocurrency remains on the verge of breaking through the key resistance level at the 161.8% Fibonacci extension near $102K. The recent price fluctuations suggest a potential “correction through time,” possibly paving the way for another upward movement as we approach the holiday season.
The prevailing uptrend is still intact, as strong market inflows have led to relatively brief pullbacks, indicating that the primary trajectory continues to lean toward the upside.
Ethereum Technical Overview: ETH/USD Daily Chart
Ethereum experienced a tumultuous week, initially plummeting 12% from the $4,000 threshold but making a recovery to retest this crucial level. As noted previously, the $4K area corresponds to the 78.6% Fibonacci retracement of its decline from 2021 to 2022, rendering it a focal point for traders.
Following the early volatility, ETH/USD is no longer considered overbought based on the 14-day RSI indicator. A breach above the $4K resistance could lead to minimal technical barriers until the previous high near $4,800. Meanwhile, the previous resistance level at $3,400 has transitioned to support and remains critical for maintaining the upward trend.
-- Analysis by Financial Market Expert
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