The cryptocurrency market faced a brutal shake-up as Bitcoin slipped below the $115,000 mark and Ethereum dropped under $4,500, erasing weeks of bullish momentum. What started as a period of cautious optimism quickly turned into a wave of panic selling, leaving bulls struggling to regain control. The sharp correction has pushed the market into a new, uncertain phase where confidence is being tested, and short-term volatility is dominating sentiment. Related Reading: Coinbase Reserves Hit $112B: Highest Level Since 2021 Market Peak Top analyst Maartunn highlighted one of the key drivers behind the downturn: an overleveraged derivatives market. In the last 24 hours alone, the crypto market witnessed $597 million in BTC and ETH long liquidations, marking one of the heaviest waves of forced selling in recent months. This liquidation wipeout serves as a harsh reminder to tradersof the risks of excessive leverage in a market that can turn abruptly. The selloff also underscores the fragile balance between bullish enthusiasm and macroeconomic uncertainty. With central banks recalibrating policy and liquidity conditions tightening, crypto faces a complex environment. As prices test lower support levels, the coming days will reveal whether this correction is a temporary shakeout or the beginning of a deeper phase of market revaluation. Liquidations Trigger Speculation on Crypto’s Next Phase According to Maartunn, the past 24 hours delivered one of the harshest blows to overleveraged traders this year. Data shows that $189 million in Bitcoin longs were liquidated, alongside an even larger $408 million in Ethereum longs, bringing the total wiped out positions close to $600 million. This wave of liquidations happened within hours, highlighting just how fragile sentiment can be when leverage builds up across major assets. The sudden sell-off sent shockwaves through the market, forcing bulls to retreat as Bitcoin slipped under the $115K level and Ethereum dropped below $4,500. Traders who had built aggressive long positions in anticipation of continued upside quickly found themselves on the losing side, as cascading liquidations amplified the decline. Such events are not uncommon in crypto, but the size and speed of this move have left investors reassessing the short-term landscape. Now, speculation is heating up about what comes next. Some analysts argue this was nothing more than a leverage reset, a necessary purge to clear excessive speculation and allow the market to build a healthier foundation for the next leg upward. Others are less optimistic, viewing the event as a potential trigger for a corrective stage, where broader selling pressure could drag prices lower before any recovery. What’s clear is that the market has entered a new phase of uncertainty. Investors are watching closely for whether fresh demand steps in to stabilize prices, or if further selling pressure forces a deeper pullback. Until clarity emerges, volatility is likely to dominate. Related Reading: Tron Integration Marks Next Phase Of PayPal USD’s Multi-Chain Growth – Details Total Crypto Market Cap Analysis The total cryptocurrency market cap has experienced a sharp pullback, currently sitting around $3.83 trillion after a 3.3% daily decline. The chart highlights the rejection near the $4 trillion mark, a key psychological resistance level that has repeatedly capped upward moves in recent weeks. Despite this setback, the market remains well above its medium-term supports, suggesting the broader uptrend is still intact. Looking at the moving averages, the 50-day SMA (~$3.87T) is being tested, and a decisive close below could open the door to further downside toward the 100-day SMA (~$3.68T). However, as long as the market holds above this zone, the bullish structure remains valid. The 200-day SMA (~$3.31T) continues to provide a strong foundation for the longer-term trend, showing that the bull market context remains strong. Related Reading: FalconX Adds To Solana Stash: $28.39M In SOL Pulled From Binance This recent drop reflects the heavy liquidations across BTC and ETH longs, which have rippled through altcoins, increasing volatility across the board. If the market stabilizes above $3.8T, it could set the stage for another attempt at breaking $4T. Conversely, a deeper breakdown below $3.7T may shift momentum, signaling a potential corrective phase in the short term. Featured image from Dall-E, chart from TradingView
The crypto market is heating up once again as Bitcoin consolidates just below its all-time highs and Ethereum approaches critical resistance near the $4,000 level. Momentum is building across major assets, and volatility is picking up as capital rotates into altcoins. Traders are closely watching for a breakout, with many expecting a decisive move in the coming days. Related Reading: TRON Sees $1B USDT Mint: Liquidity Wave Incoming? Adding to the intensity, blockchain analytics platform Arkham (ARKM) has revealed that Abraxas Capital—a London-based investment management firm known for its aggressive crypto strategies—is currently down over $100 million on its short positions. Arkham specializes in deanonymizing blockchain transactions and linking them to real-world entities, offering deep insight into the strategies and exposures of major players. With prices steadily climbing, the firm’s unrealized losses are mounting, highlighting the risks of betting against a rising market. This revelation has sparked conversation across the industry, as it not only underscores growing institutional involvement but also reveals the shifting dynamics between smart money and market momentum in this stage of the cycle. Crypto traders now watch closely to see how this unfolds. Abraxas Capital Faces Mounting Losses On $800M Crypto Shorts According to Arkham Intelligence, Abraxas Capital currently holds nearly $800 million in short positions across Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and HYPE on the Hyperliquid platform. Notably, the largest BTC and ETH shorts on Hyperliquid belong to Abraxas, with data revealing a current unrealized loss (uPnL) of approximately $106.3 million on their account. These positions reflect a high-stakes strategy that may serve as a hedge against spot holdings or other long-term crypto exposures. However, this hedge is becoming increasingly costly as market conditions remain bullish. Bitcoin continues to consolidate near all-time highs, and any breakout above the $122K–$123K range could push prices toward the $150K–$160K zone—close to Abraxas’ BTC liquidation level at $156,000. As volatility returns to the market and altcoins start gaining momentum, these leveraged short positions face growing risk. If BTC and ETH break to new highs, unrealized losses on Abraxas’ account could accelerate sharply. While some analysts still expect a market correction, especially given the failure to set new highs in recent weeks, others see the consolidation as a bullish continuation pattern. Related Reading: Bitcoin Demand Builds at $117K: Cost Basis Distribution Defines Key Support Level Bitcoin Consolidates Between Key Levels The 12-hour chart shows Bitcoin locked in a tight range between $115,724 and $122,077, with the price currently trading at $118,497. After a sharp rally earlier in July, BTC has entered a consolidation phase, forming a sideways structure with diminishing volume—a typical sign of market indecision. Despite the lack of breakout, the price remains above all major moving averages: the 50 SMA at $115,943, the 100 SMA at $111,170, and the 200 SMA at $106,348. This alignment supports a bullish trend, with buyers still in control of the broader structure. Related Reading: Ethereum CME Futures Open Interest Hits Record $7.85B – Is ETH Overheating? However, momentum has stalled. Each attempt to break above $122,000 has been met with resistance, while dips toward $116K have been absorbed quickly. The narrowing price action and falling volume suggest a breakout—or breakdown—is approaching. If bulls manage to clear the $122K level with strong volume, a new rally toward all-time highs could follow. On the flip side, a close below $115K would break the structure and potentially trigger a deeper correction. Featured image from Dall-E, chart from TradingView
According to a recent report by 10X Research, Bitcoin (BTC) may be attempting to form a local bottom, as US President Donald Trump is expected to soften his stance on reciprocal tariffs, which are set to go into effect on April 2. Up Only For Bitcoin? Bitcoin’s plunge to $77,000 on March 10 may have marked the bottom for the top cryptocurrency in the current market cycle. Since then, the digital asset has appreciated by more than 10%, trading in the mid $80,000 range at the time of writing. Related Reading: Bitcoin Needs Weekly Close Above This Level To Confirm Market Bottom, Analyst Says The 10X Research report suggests that Trump’s recent pivot toward “flexibility” on the upcoming April 2 reciprocal trade tariffs may have alleviated some concerns about further deterioration in the global macroeconomic outlook. Additionally, the report emphasizes the US Federal Reserve’s (Fed) comments following this month’s Federal Open Market Committee (FOMC) meeting, where the central bank indicated that it would slow the pace of balance sheet drawdown and end the current cycle of quantitative tightening. The Fed’s remarks followed the release of the February 2025 Consumer Price Index (CPI) inflation data, which came in line with expectations, easing concerns about inflation. The report’s claim that BTC has formed a bottom aligns with crypto entrepreneur Arthur Hayes’ recent statement, where he noted that BTC may have “probably” bottomed at $77,000. The following chart illustrates a bullish reversal in BTC’s 21-day moving average, which currently sits at $85,200. The report points out that these weekly reversal signs are back at levels typically seen when past bull markets have resumed. For example, in September 2023, BTC benefited from bullish momentum as the Bitcoin exchange-traded funds (ETF) narrative gained traction. Similarly, BTC embarked on a historic rally in August 2024 as the US presidential election drew closer. Additionally, a recent post on X by seasoned crypto analyst Ali Martinez highlights that Bitcoin transaction fees have nearly tripled over the past week, indicating an uptick in network activity as market sentiment improves. BTC Still Not Completely Bullish While Trump’s softening stance on tariffs is good news for risk-on assets like cryptocurrencies, BTC still needs to break through and sustain certain price levels to regain strong bullish momentum. Related Reading: Bitcoin Uptrend Soon? Dollar Index Breakdown Sparks Optimism Among BTC Bulls Recent analysis by Martinez identified $94,000 as a critical price level for BTC to overcome. If the digital asset decisively breaks through and sustains this level, it could be poised to climb as high as $112,000. That said, concerns remain about BTC’s relatively weak price performance compared to other safe-haven assets like gold. At press time, BTC is trading at $87,650, up 3.6% in the past 24 hours. Featured image from Unsplash, charts from 10X Research, X, and TradingView.com
According to crypto entrepreneur Arthur Hayes, Bitcoin (BTC) is likely to bottom around $70,000, marking a 36% correction from its latest all-time high (ATH) of $108,786. Hayes stated that such corrections are “very normal” in a bull market. Bitcoin To Dip Further? Yesterday, Bitcoin hit a four-month low of $76,606 as both the global cryptocurrency and stock markets tumbled amid rising fears of an economic recession. For context, the S&P 500 (SPX) has dropped nearly 8% over the past month. Related Reading: Bitcoin Slips Under 200-Day Moving Average – Will The Downtrend Continue? Latest data from predictions market platform Polymarket assigns a 39% chance of a US recession in 2025. On February 28, the platform gave a 23% probability of a US recession this year. Despite these economic concerns, Hayes advises crypto investors to remain patient. In an X post published yesterday, the former BitMEX CEO stated that BTC will likely find a bottom around $70,000, completing a routine 36% correction from its ATH in January. Hayes further noted that once BTC hits $70,000, traditional financial markets – including the S&P 500 (SPX) and Nasdaq (NDX) – would need to experience a sharp decline, accompanied by failures in major financial institutions. This, in turn, would prompt central banks like the US Federal Reserve (Fed), the European Central Bank (ECB), and the Bank of Japan (BOJ) to initiate quantitative easing (QE), creating an optimal buying opportunity. He added: Then you load up the truck. Traders will try to buy the dip, if you are more risk averse wait for the central banks to ease then deploy more capital. You might not catch the bottom but you also won’t have to mentally suffer through a long period of sideways and potential unrealised losses. Historical data suggests that QE has been highly beneficial for BTC’s price. During the last QE period, from March 2020 to November 2021 – amid the COVID pandemic – BTC surged from $6,000 to as high as $69,000, marking an astonishing 1,050% gain. Similarly, crypto analyst Michael van de Poppe shared the following chart, noting that BTC likely completed a double-bottom re-test and experienced a strong bounce after yesterday’s potential low. He further suggested that if BTC breaks past $83,500, it could see an even stronger move to the upside. Data Points Toward BTC Trend Reversal While Hayes predicts that BTC has yet to bottom, several indicators suggest the flagship cryptocurrency may soon witness a trend reversal. For instance, BTC’s Relative Strength Index (RSI) is currently at its lowest level since August 2024, signaling that a potential recovery may be imminent. Related Reading: Bitcoin Fills CME Gap Between $78,000 and $80,000 – Is A Reversal Around The Corner? Additionally, the US dollar index (DXY) recently experienced one of its largest weekly declines since 2013, raising hopes for a rally in risk-on assets like Bitcoin. At press time, BTC is trading at $80,008, up 0.1% in the past 24 hours. Featured image from Unsplash, charts from X and TradingView.com
Over the last week, Ethereum (ETH) has dropped 13.8%, currently trading at the critical $2,000 support level. While the digital asset’s weekly Relative Strength Index (RSI) has hit its lowest point in three years, analysts warn that further downside may still be ahead. Ethereum RSI At Lowest Levels In Years US President Donald Trump’s trade tariffs on Canada and Mexico took effect earlier today, fueling fears of an impending recession. According to the latest data from Kalshi, there is a 39% probability of a recession occurring in 2025. Related Reading: Ethereum Must Hold This Key Level To Keep Altseason Hopes Alive, Analyst Explains The broader crypto market has also felt the pressure from these tariffs, with the total market cap declining from $3.7 trillion on December 14 to $2.8 trillion at the time of writing. Major cryptocurrencies such as Bitcoin (BTC) and ETH have been significantly impacted, down 7.1% and 8.9% in the past 24 hours, respectively. Unlike BTC, which saw a remarkable 2024 with multiple new all-time highs (ATH), ETH has struggled since reaching its peak of $4,878 in November 2021. Over the past year, ETH has declined by 41.6%, while BTC has risen by 26%. The latest crypto market pullback has added to ETH’s challenges, bringing it down to the psychologically significant $2,000 level. Crypto analyst Jesse Olson noted that intense selling pressure has pushed ETH’s weekly RSI to 35.87, its lowest reading since May 2022. Olson further explained that the bottom was not reached in May 2022, as ETH subsequently dropped another 60%. If ETH follows a similar trajectory, it could fall another 60% from $2,000, potentially reaching around $800. Fellow crypto analyst Merlijn The Trader echoed Olson’s concerns, stating that Ethereum is currently “playing the waiting game.” The analyst emphasized that ETH is approaching a crucial “make or break” level on the RSI. Analyst Urges Not To Panic Sell ETH Despite heightened macroeconomic uncertainty due to Trump’s trade tariffs, some analysts remain confident that ETH is nearing its bottom and could soon resume its uptrend. In an X post, one crypto analyst remarked: Ethereum is currently retesting the 21-Day EMA on the 3-Month chart. ETH has NEVER closed a candle beneath this level. We are either about to witness history or we are very close to bottoming. Be VERY CAREFUL Panic Selling! Related Reading: Ethereum Positioned For A ‘Major Move Upward’ In 2025, Analyst Forecasts There might still be hope for the second-largest cryptocurrency, as recent analysis found that ETH exchange balances have dropped to a 9-year low, strengthening the digital asset’s supply scarcity narrative. At press time, ETH trades at $2,126, down 8.9% in the past 24 hours. Featured image from Unsplash, Charts from X and TradingView.com
According to an X post by crypto analyst Ali Martinez, Bitcoin (BTC) is witnessing a decline in sell-side pressure, indicating that a local market bottom may soon form for the premier cryptocurrency. Bitcoin Local Bottom On The Horizon? Bitcoin continues to trade just below the psychologically significant $100,000 level, hovering at $98,650 at the time of writing. However, the top cryptocurrency by market capitalization is witnessing a notable drop in sell-side pressure. Related Reading: Bitcoin 4-Year CAGR Drops To 14.45% But Still Outshines Gold, Stocks – Details Martinez shared the following Bitcoin Sell-Side Risk Ratio chart from crypto analytics platform Glassnode, highlighting a sharp decline in the metric since mid-January 2025. This drop suggests that BTC may be forming a local price bottom, potentially leading to a new accumulation phase. For those unfamiliar, a declining sell-side risk ratio typically indicates that investors are holding onto their BTC rather than selling, signalling the early stages of an accumulation phase where prices may stabilize or begin to rise. Martinez’s analysis aligns with broader crypto market cycle theories, which suggest that market bottoms are often followed by an accumulation phase. This phase, in turn, paves the way for a potential price increase. However, BTC must hold above key support levels to confirm this outlook. Crypto analyst Rekt Capital weighed in on Bitcoin’s price action, emphasizing the importance of a weekly close above $97,000 to maintain its higher low as support. The analyst shared a Bitcoin weekly chart, noting that while BTC has seen multiple wicks below its symmetrical triangle structure, the overall bullish pattern remains intact. However, failure to close above $97,000 on the weekly timeframe could increase the risk of further downside. Similarly, fellow analyst Daan Crypto Trades shared a bullish perspective, pointing out that BTC recently had a “solid break” from a descending channel structure. The analyst added: Just need to see the continuation now into the weekend to get a good base going into next week. $98K is key in the short term. Is BTC Primed For A New All-Time High? While Martinez suggests that BTC may be forming a local bottom, other analysts believe the cryptocurrency is gearing up for a move beyond $108,000, potentially reaching a new all-time high (ATH). Analyst Kevin, for instance, predicts that a short squeeze could propel BTC to $111,000. Related Reading: Bitcoin At Risk? Analyst Says Breaking This Price Level Could Spark Significant Volatility Similarly, recent analysis by Rekt Capital highlights that BTC is showing early signs of a bullish divergence which could break the digital asset’s bearish price momentum. At press time, BTC trades at $98,650, up 0.1% in the past 24 hours. Featured image from Unsplash, Charts from X and TradingView.com
According to a recent CryptoQuant Research post, Bitcoin (BTC) network activity has slumped to a 12-month low, with CryptoQuant’s Bitcoin Network Activity Index currently at its lowest level since February 2024. Bitcoin Network Activity Drops As Market Consolidates Data from CryptoQuant’s Bitcoin Network Activity Index shows that activity has declined by 15% from its peak in November 2024. As of February 5, the Index stands at 3,760, marking its lowest level in the past year. Related Reading: Bitcoin 4-Hour RSI Hits Oversold Zone – Is A BTC Rebound Near? The decline in network activity is primarily attributed to a sharp drop in the number of transactions on the Bitcoin network. From an all-time high (ATH) of 734,000 transactions in September 2024, the total daily transaction count has fallen by 53% to 346,000. According to CryptoQuant, this downturn in BTC network activity is largely driven by a decline in the use of the Runes Protocol for minting tokens on the blockchain. The post explains: This is evident in the total daily number of OP RETURN codes in Bitcoin transactions, which the RUNES protocol uses to write data about token mints and transfers on the network. When the RUNES protocol emerged in April 2024, the daily number of OP RETURN codes spiked to 802K. However, the number of OP RETURN code has plummeted since, with only 10K OP RETURN codes used. For the uninitiated, The Runes Protocol is a new token standard for BTC, designed to enable fungible token creation directly on the network without requiring off-chain data or complex smart contracts. It aims to be more efficient and scalable than previous Bitcoin tokenization methods like Ordinals and BRC-20. Further evidence of reduced network activity is visible in Bitcoin mempool traffic. The total number of pending transactions waiting to be confirmed in a Bitcoin block has plummeted by 99%, from 287,000 in December 2024 to just 3,000 as of February 5, 2025. Notably, this is the lowest level of mempool traffic since March 2022. Is BTC Overvalued At Current Price? The analysis suggests that, based on network activity, Bitcoin’s fair value currently falls between $48,000 and $95,000. This implies that BTC’s current market price of around $98,000 may be overvalued. Related Reading: Bitcoin Withstands DeepSeek Dip And FOMC Volatility – How Close Is A New ATH? However, another CryptoQuant contributor argues that the current Bitcoin price presents a strong buying opportunity for investors looking to dollar-cost average their holdings. Similarly, another analyst suggests that BTC’s recent market performance indicates it is in the distribution phase of the market cycle. Despite short-term concerns, the long-term outlook for BTC remains bullish. A Standard Chartered executive recently predicted that Bitcoin could reach $200,000 by the end of 2025. At press time, BTC trades at $97,914, down 0.1% in the past 24 hours. Featured image from Unsplash, Chart from TradingView.com
In a market breakdown shared on X, independent trader and Zero Complexity Trading founder Koroush Khaneghah points to a handful of critical crypto charts that he believes could dictate the next major market move. Khaneghah, who has invested in over 50 startups, emphasizes that the charts for BTC/USD, BTC Dominance (BTC.D), TOTAL2, ETH/BTC, and SOL/BTC provide invaluable insights into the crypto market’s current condition and possible future shifts. BTC/USD: Defining The Crypto Market Khaneghah identifies BTC/USD as the yardstick for gauging what stage of the bull run the market might be in. According to his view: “This decides what stage of the bull run we’re in. – Breaks above ATH resume the bull run – Consolidation below ATH -> Altcoins enter accumulation zones – Major structural breaks -> Time to turn bearish” He suggests traders begin by determining which of three market environments Bitcoin is in: a raging bull market, a consolidation phase, or a structural downturn. Currently, Khaneghah sees BTC/USD “ranging below all-time highs, coming off some major uptrends,” which often presents either a catch-up scenario for altcoins or a prolonged accumulation phase ahead of Bitcoin’s next attempt to break all-time highs. BTC Dominance (BTC.D) To clarify whether altcoins are poised for a significant move, Khaneghah turns to BTC Dominance. As he explains: “BTC.D (bitcoin dominance) tracks Bitcoin’s share of the total crypto market cap. “Increasing Dominance = BTC outperforms and altcoins lag (same for upside and downside). Decreasing Dominance = BTC cools off and money flows into Altcoins.” Dominance rising typically means Bitcoin is absorbing the bulk of market liquidity. Meanwhile, a drop in BTC.D often suggests altcoins are about to see greater inflows of capital. Crypto Market Cap Excluding Bitcoin (TOTAL2) The TOTAL2 chart, which excludes Bitcoin from the total crypto market capitalization, is key to analyzing altcoin behavior. Khaneghah advises: “When BTC.D Falls, TOTAL2 increases because capital is rotating into altcoins. When TOTAL2 breaks out, look for longs on the strongest altcoins, rotate out of Bitcoin, and shift capital into alts again.” He stresses that the highest probability trades come from identifying moments when the market rotates away from Bitcoin. In these instances, traders might see stronger returns by entering altcoin positions rather than remaining primarily in BTC. ETH/BTC Khaneghah underscores that ETH/BTC is a helpful barometer for broader altcoin sentiment: “The best altcoin plays happen when ETH/BTC stops trending downwards because the market confidence in alts returns here.” When Ethereum is outperforming Bitcoin or stabilizing against it, it generally sparks confidence that altcoins could experience rallies, often referred to as “altseason.” SOL/BTC Khaneghah also shines a spotlight on SOL/BTC, suggesting that Solana’s performance relative to Bitcoin could reshape altcoin capital rotation: “I don’t normally look at this but a comparison helps decide if the money rotation has a better reward within the SOL ecosystem or ETH. People will think SOL has ‘pumped already’ but I like buying coins with strength, rather than buying coins that might catch a bid.” While Solana has posted significant gains, Khaneghah believes its strong performance could continue. He notes that if Solana keeps outperforming Bitcoin, some capital might shift away from ETH, potentially amplifying activity across the SOL ecosystem. At press time, BTC traded at $105,026. Featured image from Shutterstock, chart from TradingView.com
After surging past $90,000 for the first time on November 12, 2024, Bitcoin (BTC) has been trading within a broad range between $91,000 and $108,000. However, some analysts remain optimistic that BTC is poised to break out of this range to the upside following what they describe as a ‘final capitulation.’ Bitcoin Consolidation Nearing Its End? Crypto analyst Trader Tardigrade recently shared their analysis of Bitcoin’s price action on X. According to the analyst, BTC might be approaching a final capitulation before experiencing a significant breakout that could end its prolonged range-bound movement. The analyst commented: The current crypto market sentiment isn’t great. I’d actually welcome a downturn in the next couple of days to complete this price action. Bitcoin experienced a final capitulation at the 27th bar during consolidation in January 2024, just before a massive rebound. If history repeats, the final capitulation level will be reached today or tomorrow. After that, BTC will surge with a massive rebound. Related Reading: MARA CEO Advocates “Invest And Forget” Approach To Bitcoin, Citing Strong Historical Performance To support their prediction, Trader Tardigrade shared a chart comparing Bitcoin’s current price action with its behavior in January 2024. During that period, BTC consolidated for 53 days, underwent a final capitulation, and then rallied sharply, climbing from around $39,000 to as high as $71,000. Interestingly, Bitcoin’s current consolidation phase has already lasted over 50 days. If BTC follows its January 2024 pattern, the final capitulation could occur on January 13 or 14. Another crypto analyst, @CryptosBatman, pointed to tightening Bollinger Bands on Bitcoin’s three-day chart. They highlighted that the Bollinger Bandwidth has reached an extremely oversold level and remarked: Historically, such lows signal a local bottom. Remarkably, the bandwidth is now tighter than when Bitcoin was at $50K, suggesting the bottom might be very close. For the uninitiated, Bollinger Bandwidth is a metric derived from Bollinger Bands that measures the distance between the upper and lower bands relative to the moving average. It is often used to identify periods of low volatility, which can signal potential breakout opportunities. Crypto Analysts Foresee A Positive 2025 While Bitcoin’s ongoing consolidation phase might frustrate bulls, many analysts remain confident that digital assets will benefit from multiple favorable factors in the coming months. Related Reading: Trump-Fuelled Bitcoin Rally May Fade Ahead Of January FOMC Meeting: Report For instance, crypto entrepreneur Arthur Hayes recently predicted that BTC may rally in Q1 2025 on the back of the US Federal Reserve’s (Fed) decision to inject fresh liquidity into the US economy through money printing. Similarly, crypto analyst Dave The Wave has forecasted that BTC is likely to hit a peak during summer 2025. At press time, BTC trades at $96,424, up 4.9% in the past 24 hours. Featured image from Unsplash, Charts from X and TradingView.com
After weeks of consolidation, Ethereum (ETH) appears to be breaking out to the upside from its $3,200 to $3,500 trading range. Bullish technical indicators on the ETH chart, coupled with strengthening fundamentals, suggest significant upside potential for the second-largest cryptocurrency by market cap. Is Ethereum Eyeing $4,000 Target? Last month, Ethereum attempted to breach the […]
Bitcoin (BTC) tumbled from a high of $108,135 on December 17 to $99,500, following US Federal Reserve (Fed) Chair Jerome Powell’s hawkish remarks yesterday. However, some crypto analysts are pinning their hopes on a potential decline in Bitcoin Dominance (BTC.D) that may pave the way for an altseason. What Caused The Crypto Market Crash? Since […]
In a report published on December 17, analysts at cryptocurrency exchange Bitfinex stated that a combination of rising institutional adoption of Bitcoin (BTC) and bullish technical indicators could push the leading cryptocurrency as high as $200,000 by mid-2025. The report also predicts that any price corrections during 2025 are likely to ‘remain mild.’ Bitcoin Pullbacks To Be Mild In 2025 Earlier this month, Bitcoin crossed the psychologically significant $100,000 price level, pushing its total market capitalization to slightly above $2 trillion at the time of writing. However, according to the latest edition of the Bitfinex Alpha report, BTC still has significant potential for growth heading into 2025. Related Reading: Bitcoin On Track For $275,000? Analyst Cites Cup And Handle Formation The report highlights several technical indicators, including market value to realized value (MVRV), net unrealized profit/loss (NUPL), and the bull-bear market cycle indicator, which collectively suggest that the market still reflects bullish momentum and is far from hitting euphoric peaks. According to Bitfinex analysts, while diminishing returns might temper Bitcoin’s extraordinary growth seen in previous cycles, the cryptocurrency could still reach $200,000 under ‘favorable conditions.’ The report states: Our view is that any corrections in 2025 will remain mild, thanks to institutional inflows. Historically, post-halving years have seen the strongest rallies. Minimum price estimates stand at $145,000 by mid-2025, potentially stretching to $200,000 under favourable conditions. Indeed, institutional inflows into Bitcoin through exchange-traded funds (ETFs) have shown a steady upward trajectory, especially after Donald Trump’s win in the November presidential election. A recent analysis revealed that US spot ETFs now hold more BTC than the wallet of Bitcoin’s pseudonymous creator, Satoshi Nakamoto. While the report projects a strong long-term bullish case, it cautions that some price volatility may emerge during Q1 2025. These pullbacks, however, are expected to be mild and short-lived. The report also notes that price corrections following Bitcoin halvings have been shrinking in size with each cycle: In previous cycles, once Bitcoin entered price discovery following a halving, corrections before mean reversion to new ATHs were relatively contained. In the 2017 cycle, the maximum correction was 33.2 percent, while the 2020 cycle saw a slightly smaller correction of 27.1 percent. Strategic Reserve May Extend BTC Gains One unique factor in this Bitcoin cycle is the speculation surrounding the potential establishment of a US strategic Bitcoin reserve. Such a reserve could drive Bitcoin prices into the seven-figure range, according to Blockstream CEO Adam Back. Related Reading: VanEck Gives Official Backing To Donald Trump’s Bitcoin Reserve Strategy Matt Hougan, Chief Investment Officer at asset management firm Bitwise, recently noted that creating a strategic BTC reserve could propel the asset’s price to $500,000. Experts believe that if the US establishes a BTC reserve, other nations are likely to follow suit, creating a domino effect that could lead to a significant price surge. In related news, Japanese Member of Parliament Satoshi Hamada floated the idea of Japan creating its own strategic BTC reserve. At press time, BTC trades at $103,953, down 3.7% in the past 24 hours. Featured image from Unsplash, Chart from TradingView.com
Amid its historic price action, Bitcoin (BTC) has quietly hit a new all-time high (ATH) against gold. The insight was highlighted by veteran trader Peter Brandt in an X post. Bitcoin Hits New ATH Against Gold: Room For Further Growth? Brandt’s analysis revealed that the BTC-to-gold ratio has reached a new ATH of 32.19 ounces of gold per BTC. In his post, the seasoned trader also took a subtle dig at long-time gold advocate Peter Schiff, a vocal Bitcoin critic. Related Reading: Bitcoin Price Surge In 2024 Not Enough To Beat Gold’s Risk-Adjusted Returns – Details Here For those unfamiliar, the BTC-to-gold ratio measures Bitcoin’s performance relative to gold, showing how many ounces of gold are needed to purchase one whole BTC. This metric underscores Bitcoin’s growing dominance as a store of value. Brandt further noted that the next target for Bitcoin is 89 ounces of gold per BTC, suggesting significant room for Bitcoin to grow against the precious metal. This aligns with the broader narrative within the crypto industry that Bitcoin is poised to challenge gold’s $15 trillion market cap. It’s worth recalling that Brandt previously predicted Bitcoin would rise 400% relative to gold by 2025. Back in October, he projected that BTC could reach the equivalent of 123 ounces of gold based on historical market patterns. A recent report by trading firm Bernstein added weight to this narrative, forecasting that Bitcoin is on track to replace gold as the preferred safe-haven asset within the next 10 years. As of now, BTC boasts a market cap of $2.11 trillion, steadily closing in on gold’s dominance. Similar forecast was made by one of the earliest Bitcoin advocates, Eric Voorhees. The CEO of ShapeShift crypto exchange made a bold prediction, saying that unlike gold or oil, BTC’s digitally-programmed supply scarcity will drive its price upwards. Additionally, Nate Geraci, President of the ETF Store, predicts that Bitcoin-based exchange-traded funds (ETFs) could surpass gold ETFs in total assets under management within the next two years. Supporting this outlook, data from SoSoValue indicates that cumulative net inflows into all spot BTC ETFs currently stand at $35.6 billion, compared to gold ETFs, which sit at $55 billion. Implications Of A Potential BTC Strategic Reserve With BTC surpassing the pivotal $100,000 price level, speculation has grown regarding President-elect Donald Trump’s approach to digital assets. Industry experts believe that Trump may prioritize Bitcoin adoption early in his second term, further boosting BTC’s price. Related Reading: BlackRock Declares Bitcoin The New ‘Gold Alternative’ – Here’s Why Data supports this optimistic view. According to crypto analyst Ali Martinez, the number of BTC whales – wallet addresses holding more than 1,000 BTC – has skyrocketed since Trump’s election victory. This optimism is further fuelled by speculation surrounding a potential US strategic Bitcoin reserve. Prominent financiers argue that if the US were to create such a reserve, China and other nations would likely follow suit to remain competitive. At press time, BTC trades at $106,909, up 3.7% in the past 24 hours. Featured image from Unsplash, Charts from X and TradingView.com
Bitcoin (BTC) remains resilient, trading close to the $100,000 mark despite a recent correction that led to over $500 million in liquidations, predominantly from long positions. A recent report by Glassnode analyzes the cohorts driving the sell-side pressure during this ongoing bull run. Majority Of Sell-Side Pressure Coming From New Market Entrants According to Glassnode’s report titled “The Week Onchain,” while some long-term Bitcoin holders realize substantial profits – amounting to over $2 billion in a single day – not all are willing to part with their holdings. Related Reading: Bitcoin Price Closes Above Bull Channel, Crypto Analyst Reveals What’s Next The report highlights that the Long-Term Holder (LTH) cohort is capitalizing on the inflow of liquidity and strong demand to sell BTC near all-time high (ATH) price levels. Glassnode notes: Since the peak in LTH supply set in September, this cohort has now distributed a non-trivial 507k BTC. This is a sizeable volume; however, it is smaller in scale relative to the 934k BTC spent during the rally into the March 2024 ATH. The report breaks the LTH cohort into sub-cohorts based on realized profit metrics to understand the sell-side dynamics better. It reveals that holders who acquired BTC 6 months to 1 year ago contribute the most to sell-side pressure, realizing $12.6 billion in profits, accounting for 35.3% of all realized gains. Other sub-cohorts have realized comparatively smaller profits, including $7.2 billion by those holding BTC for 1 to 2 years, $4.8 billion by those with 2 to 3 years of holdings, $6.3 billion by 3 to 5-year holders, and $4.8 billion by investors holding for more than 5 years. The report adds: The dominance of coins aged 6m-1y highlights that the majority of spending has originated from coins acquired relatively recently, highlighting that more tenured investors are remaining measured and potentially waiting patiently for higher prices. This pattern suggests that heightened profit-taking among holders in the 6-month to 1-year range indicates the cohort is dominated by newer investors, many of whom likely entered the market following the launch of Bitcoin exchange-traded funds (ETF). Their strategy appears to involve short-term gains, riding the wave of the current market surge. Bitcoin Adoption Continues To Grow Around The Globe While the recent price pullback may have cautioned some investors, others opine that it was a healthy correction that gives the leading cryptocurrency some time for consolidation before the next leg up. Related Reading: Metaplanet To Expand Bitcoin Holdings With $11.3 Million Bond Sale Bitcoin’s unprecedented price has created a shared urgency among corporations and nations worldwide. Following MicroStrategy’s tactics, Canadian company Rumble recently announced it would use a portion of excess cash reserves to buy BTC. Most recently, CEO of Marathon Digital Holdings, Fred Thiel, said institutional interest in BTC has increased significantly since Donald Trump’s victory in the 2024 elections. BTC trades at $95,462 at press time, up 2% in the past 24 hours. Featured image from Unsplash, charts from Glassnode and Tradingview.com
Bitcoin (BTC) is closing in on its all-time high (ATH), bringing excitement among bulls. However, seasoned analyst Peter Brandt advises caution, urging bulls to stay excited yet avoid becoming dogmatic. Bitcoin Breakout Yet To Be Confirmed After a lackluster start to October – a historically bullish month for Bitcoin – the digital asset is exchanging hands at $71,789, just about 3% shy of its March 2024 ATH of $73,737. Related Reading: Bitcoin To $100,000 By February 2025? Analyst Explains Why While the prospect of a new ATH has the crypto market on its feet, veteran analyst and trader Brandt thinks multiple conditions must be fulfilled to determine a confirmed breakout. In a post published on X on October 29, Brandt cautioned BTC bulls against over-enthusiasm without technical confirmation of a breakout. Specifically, the analyst warned the bulls about the limitations of diagonal patterns – particularly those with slanted boundary lines – on trading charts. Brandt explained that although “nicking” of a boundary line might excite the bulls, it does not represent a confirmed breakout. For a breakout to be genuine, Brandt has set the target price at $76,000, stating that Bitcoin’s daily chart needs to close above this level, with an average true range (ATR) measurement confirming this move above Bitcoin’s previous high set in March. For the uninitiated, the ATR is a technical analysis indicator that measures market volatility by calculating the average of true price ranges over a set period, typically 14 days. It reflects how much an asset moves, helping traders gauge potential price fluctuations and set more informed stop-loss or profit targets. Further, Brandt notes that such a breakout must be validated by a close on Sunday at midnight UTC, to ensure it is not a fake breakout that ends up trapping bullish investors. On the weekly chart, Brandt highlighted that Bitcoin’s recent advance “has only nicked important chart points,” rather than breaking through with conviction. The analyst concluded that BTC’s price has a substantial journey ahead before decisively forming a new support level. Important To Overcome $71,000 – $73,000 Resistance Level Another crypto analyst, 0xAmberCT, highlighted the significance of the strong resistance zone around $71,000 to $73,000. However, the analyst shared several reasons why this time might be different. Related Reading: Bitcoin Options Traders See $80,000 BTC By November End, US Election Outcome Irrelevant First, the high odds of victory for the Republican US presidential candidate Donald Trump might provide the much-needed fuel to the wider crypto market to start its Q4 2024 rally. At the time of writing, Polymarket gives Trump a 66.5% chance of victory compared to Democratic candidate Kamala Harris’ 33.5%. A Trump win is a net positive for the digital assets industry. In addition, the recent interest rate cuts by the US Federal Reserve (Fed) and the heightened prospects of a “soft-landing” are expected to increase the market’s risk-taking appetite. Risk-on assets like BTC are expected to benefit in a lower interest rate environment. The analysts’ assessment aligns with Bitwise CIO Matt Hougan’s prediction that BTC may “melt-up” to $80,000 in Q4 2024. However, crypto analyst Cole Garner recently shared that BTC might head lower before achieving a new ATH due to tightening on-chain liquidity. BTC trades at $71,789 at press time, up 4% in the past 24 hours. Featured image from Unsplash, Charts from X and Tradingview.com
According to a crypto analyst, Bitcoin (BTC) may be heading towards a capitulation due to tightening on-chain liquidity. However, this capitulation could be followed by a “full bull” market. Bitcoin Headed Lower Before Higher In a detailed thread on X about BTC price analysis, crypto analyst Cole Garner stated that capitulation might be on the horizon for the leading digital asset. Garner attributes the potential downturn to tightening on-chain liquidity. Related Reading: Bitcoin ETF Options Set To Supercharge Price Volatility, Expert Warns Tracking global liquidity from central banks worldwide, the analyst said he sees a “buy signal” for digital assets. However, more downsides for cryptocurrencies could come before liquidity-enhancing measures undertaken by central banks buoy them. In his analysis, Garner stated that “if China doesn’t ring that bell, the Fed or Japan should do the job,” likely pointing toward the recent economic stimulus injected by the Chinese central bank in a bid to boost the country’s grim economic outlook. Garner referenced the recent economic stimulus from China’s central bank but noted that this week, the People’s Bank of China (PBoC) refrained from injecting additional liquidity, tempering expectations for risk-on assets like crypto. Garner emphasized the low supply of stablecoins compared to the beginning of October 2024. Analyzing the “Bitfinex grail,” which is essentially the total supply of two leading stablecoins on the exchange – USDT and USDC – Garner noted its quarterly rate of change is declining, potentially leading to lower prices for digital assets in the short term. Despite these concerns, Garner pointed out that Bitcoin has printed a higher high on the 8-hour chart, and the market structure remains bullish. Even if BTC dips to its range lows in the high $40k range, the overall price action is still considered positive. Garner suggested that should BTC hit its range of lows, traders and investors can consider buying at that price. Even if they are low on liquid cash, they must ensure they don’t get spooked by the market and panic-sell their current holdings. Another crypto analyst, Ali, seemed to echo Garner’s outlook, stating that Bitcoin is stuck in a descending parallel channel and runs the risk of sliding to channel lows of around $52,000. The analyst stressed that BTC must overcome the $66,000 level for a bullish breakout. Can Bitcoin Hit New All-Time Highs In 2024? With the remainder of 2024 ahead, Bitcoin bulls anticipate interest rate cuts by the US Federal Reserve (Fed) to fuel a new rally. However, BTC must clear several hurdles to sustain its bullish momentum. Related Reading: Bitcoin’s Puell Multiple Signals A Bullish Surge: Could A New ATH Be Near? Crypto analyst Carl Runefelt recently noted that BTC must overcome the $64,000 resistance level to trigger a rally in Q4 2024. Failure to break through this price level could lead to further downside. Further, Bitcoin’s price finally turned green in October, giving bulls hopes of another “uptober” for the asset, which was marked by significant price increases. BTC trades at $60,711 at press time, down 2.4% in the last 24 hours. Featured Image from Unsplash.com, Charts from X and TradingView.com