Markets

Bitcoin bears win tug-of-war battle at $62K, analysts warn further declines are likely

Published

9 months ago

8 May, 2024

Bitcoin bears win tug-of-war battle at $62K, analysts warn further declines are likely

(Kitco News) – Wednesday saw another day of volatile consolidation for the crypto market like Bitcoin (Bitcoin) fell under pressure in early trading and saw intense fighting between bulls and bears near support at $62,000 in the afternoon.

Stocks also trended lower at market open and struggled to get back into the green, with the day ending mixed for the main indices. The difficulties come at a time when investors remain uncertain about the future of interest rates as they assess the latest earnings reports to see whether other sectors can perform as well as technology.

At the close, the Dow ended up 0.44%, the S&P was stable and the Nasdaq lost 0.18%. The DXY was flat on the day, and the 10-year US Treasury yield rose 81 basis points to 4.494%.

Data provided by TradingView shows that Bitcoin spent the day hovering in a range between $61,530 and $63,020, with a stalemate in the battle for control of support at $62,000.

BTC/USD Chart by TradingView

At the time of writing, Bitcoin is trading at $61,500, down 2.36% on the 24-hour chart.

Potential drop to $60,000

“Bitcoin has been pulling back from its 50-day moving average since the start of the week,” said analysts at Secure Digital Markets. “The price is targeting a potential drop to the $60,000 level, especially if Bitcoin ETFs continue to see substantial outflows. If this outflow persists, it could lead to a break below $60,000, possibly revisiting the recent lows of $56,500.”

Data provided by Farside shows that on Tuesday there was a net outflow of $15.7 million, attributable to Grayscale’s GBTC, which saw $28.6 million in outflows after two days of positive inflows. BlackRock recorded zero entries.

“However, market sentiment currently maintains cautious optimism to stay above the $60,000 threshold and target a recovery,” the analysts noted. “Observers are closely monitoring the broader stock market performance during this earnings season, which could offer insights into the liquidity situation.”

Aaron Evans, head of fundamental operations at the Moonbeam Foundation, also sees growing optimism in the market amid news of increased adoption by institutions and reports from Fidelity that pension funds are exploring allocations to Bitcoin ETFs.

“Although Bitcoin did not reach a new high as everyone expected after the halving, there is still some bullish sentiment in the crypto market,” Evans said in a note to Kitco Crypto. “AI tokens continue to perform well, especially as enthusiasm for the NVIDIA company’s earnings report builds.”

Evans suggested that this “shows that investors are placing more trust in crypto again as they look for other tokens to invest in.” Traders are always looking for new ways to make money and when they see increasing institutional interest and other assets doing well, they are likely to diversify their portfolio. It’s similar to how memecoins operate in the market.”

“As Bitcoin continues to perform well or recover, traders will look to similar assets that will bring them more profits,” he concluded. “And we should expect more diversity in digital assets as investors rebuild their trust in the industry.”

But according to For market analyst Orson Fawley, Bitcoin “continues to move within a long-standing descending price channel” and “is expected to experience further declines and adjustments if the price channel is not violated by the bullish side”.

“BTCUSD recently broke out of the strong support zone at $63,000,” he noted. “In the short term, this continues to favor bears as EMA signals and resistance levels support further waves of selling with profit taking around the $61,000 area as the bearish side begins to control the trend.”

On Tuesday, market analyst Maximillian FX observed that the formation of “a triple top pattern” suggested that more downside is to come, which signaled a good opportunity for a sell.

“BTCUSD is currently undergoing a corrective recovery, finding support at $62,180,” he said. “However, overcoming the $63,000 resistance level remains a challenge and a goal. According to statistics, the strongest volatility occurs after a breakout. A breakout and consolidation below $63,000 could trigger a sharp decline with strong liquidity zones on the chart. There is more evidence that once resistance is reached, BTCUSD will reverse as indicated by the EMA of 34.89, which is showing signs of turning in favor of the bears, maintaining its position.”

“Technically, a correction could occur from Fibonacci 0.618 onwards”, he warned. “A break of $62,180 would allow for additional profit targeting, potentially reaching the $60,856 mark (coinciding with a test of the 1.618 Fibonacci number.”

Downtrend in the altcoin market

Altcoins were largely trading in the red, with just 20 tokens in the top 200 recording gains on Wednesday.

Daily cryptocurrency market performance. Source: Coin360

UMA (UMA) surprised traders with a 50.9% increase to trade at $4.03, while FTX Token (FTT) rose 18.3% and Tellor (TRB) gained 17.6%. Meme coin dogwifhat (WIF) led the losers, falling 13.8%, followed by a 13% loss for Worldcoin (WLD) and a 12% decline for Livepeer (LPT).

The total cryptocurrency market value is now $2.28 trillion and Bitcoin’s dominance rate is 53.5%.

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. This is not a request to carry out any exchange of goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for loss and/or damage arising from the use of this publication.

Source

Up Next

Falls to $62K on Regulatory Jitters, Fee Fears By Investing.com

Don't Miss

Crypto Markets Give Up Previous Week’s Gains

FinCrypt Staff

We are the editorial team of FinCrypt, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on FinCrypt, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

Click to comment

Markets

Crypto Markets Rebound as Spot Bitcoin ETFs Attract Massive Inflows

Published

6 months ago

17 July, 2024

FinCrypt Staff

Crypto Markets Rebound Ahead of Early Ethereum ETF Approval

This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.

Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).

The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.

Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.

Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.

Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.

Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.

Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.

U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.

Source

Markets

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Published

6 months ago

17 July, 2024

FinCrypt Staff

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.

Worldcoin (WLD) Price Analysis

O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.

The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.

Arweave (AR) Price Analysis

Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.

AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.

Price Analysis of Injective (INJ)

Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.

INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.

Source

Markets

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Published

6 months ago

17 July, 2024

FinCrypt Staff

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.

ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.

ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment

Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.

According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.

On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.

The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.

Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.

One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.

Source

Markets

Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt

Published

6 months ago

17 July, 2024

FinCrypt Staff

Bits + Bips: How to Play the ‘Trump Trade’ in Crypto After the Assassination Attempt

Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?

Posted on July 17, 2024 at 12:00 PM EST.

Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.

In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.

They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?

They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).

Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?

Program Highlights:

Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
What are the new updates about Ethereum ETFs and their expected launch?
Why Solana Hasn’t Performed Significantly Better Since Trump News
What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week