Ethereum has undoubtedly been under pressure despite the recent bullish rally in the broader cryptocurrency market as it struggles to make any major upside move. A recent analysis by ShayanBTC, a contributor to the CryptoQuant QuickTake platform, has shed light on key factors impacting Ethereum’s performance. In a post titled “Ethereum Faces Crossroads: Funding Rates and $3K Support Key to Sustaining Bullish Momentum,” Shayan highlights the asset’s struggles to maintain its upward trajectory. Related Reading: Ethereum Downswing To $2,900 Could Be A ‘Buy-The-Dip Opportunity’ – Analyst Expects Bullish Surge Funding Rates And The Importance Of The $3K Support Level According to Shayan, Ethereum’s bullish momentum has been significantly challenged by fluctuations in Funding Rates, a key indicator of demand in the derivatives market. While these rates initially rose during the recent rally in the crypto market, signaling growing confidence, there was a subsequent decline after Ethereum was rejected at the $4,000 resistance level suggesting reduced trader interest and commitment. Notably, the spike in Funding Rates during the rally pointed to cautious optimism among traders. However, the sharp decline in these rates afterward highlights a waning demand for Ethereum in the derivatives market. This shift raises concerns about the sustainability of the bullish trend, particularly in light of Ethereum’s inability to breach the $4,000 resistance. The $3,000 support level has emerged as a pivotal threshold for Ethereum. Shayan emphasized that maintaining this level is crucial for stabilizing the market and potentially reigniting bullish momentum. A failure to hold above $3,000 could trigger increased selling pressure, leading to a deeper market correction. The analyst wrote: Overall, Ethereum’s outlook depends on reclaiming higher Funding Rates and defending $3K. These factors will determine whether the market resumes its uptrend or faces further corrections. Ethereum Market Performance Meanwhile, Ethereum has continued to demonstrate downward movements, especially as the broader market has recently turned bearish. Over the past week, Ethereum’s market value has dropped by 6.2% bringing its price below $3,500. However, over the past day, there has been a slight uptick in ETH’s price as the asset records a 0.9% increase. This slight increase has pushed ETH’s price to hover above $3,200 at the time of writing marking a 33.9% decrease away from its all-time high of $4,878 recorded in November 2021. Related Reading: Ethereum: Analyst Says $7,000 Target ‘Is Looming’ As Price Retests Crucial Level Interestingly, despite the descent in ETH’s price in the past week, the asset’s daily trading volume has faced an opposite trend over the same period. Particularly, ETH’s daily trading volume has moved from $20 billion last Friday to now sitting at above $26 billion as of today. Given the current trend in ETH, it is worth noting that this increase in trading volume may be a result of the surge in buying pressure and selling pressure ongoing in the Ethereum market. Featured image created with DALL-E. Chart from TradingView
Ethereum (ETH) has seen an over 10% correction from the New Year highs amid the market retrace, recently falling below the $3,300 support. Despite the ongoing pullback, some analysts remain optimistic about ETH’s Q1 performance, suggesting new highs are around the corner. Related Reading: Bitcoin Eyes Potential Rebound To $98,600, But Analyst Suggests Caution Ethereum Forming Bullish Pattern Ethereum shredded its New Year gains today after falling below the $3,320 mark. Following the market retrace, the second-largest cryptocurrency by market capitalization saw a 14% drop from its Monday high of $3,744 to below the $3,300 support. During the start-of-year rally, ETH’s price recovered 20% from the correction’s lows, surging to pre-retrace levels for the first time in nearly three weeks. However, the market pullback, which saw Bitcoin fall 7.2% in 24 hours, sent Ethereum to the $3,210 level on Thursday morning. The $3,200-$3,300 price range served as a key support zone for ETH throughout December. After its recent performance, several analysts have suggested the cryptocurrency is forming an important reversal pattern, which could send ETH’s price to new highs. On Wednesday, crypto analyst Rekt Capital noted that Ethereum is forming a multi-month inverse Head and Shoulders pattern in the 1M timeframe. To the analyst, “it’s clear” that the $3,650-$3,760 area is “a major region of resistance, developing just below the $4,000, with price forming that resistance at a Lower High which could act as a Neckline to the pattern.” He stated that “its terminus point is at the psychological level of $3,000,” adding that “any pullback close to the $3,000 level could see Ethereum develop a right shoulder.” Similarly, As Ethereum dropped to the low of the key $3,200 range, Miky Bull highlighted the same pattern, hinting that the $7,000 target “is looming.” According to the chart, ETH’s price could see an 87.53% increase near the $7,400-$7,500 price range, based on the bullish setup. No More ‘Major Retraces’ For ETH? Crypto analyst Ali Martinez also shared his view on the bullish pattern, asserting a downswing to $2,900 “will be very bullish” for ETH. The analyst argued it would create “an excellent buy-the-dip opportunity to target $7,000 next!” However, it’s worth noting that the bullish pattern would be invalidated if Ethereum falls below $2,800, where the left shoulder formed. Meanwhile, another market watcher shared the similarities between ETH’s performance at the start of 2024 and 2025, highlighting the King of Altcoins falling below its yearly opening during January 2024 before climbing up the following month. Related Reading: ‘ADA Wave Is Coming’: Cardano Whales Go On Buying Spree As Price Attempts Breakout He stated, “I think it’s really important not to conflate a few days of red price action with high time frame bias. I am firmly of the opinion that this is a yearly open shakeout after some overly eager participants levered up too big, too early. I am very bullish on H1 2025.” Analyst Crypto Wolf considers there will likely be “little to no downside left,” suggesting that ETH could retrace another 4% to 7% maximum before it aims for all-time high (ATH) levels. As of this writing, ETH is trading at $3,255, a 2.15% decrease in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Republican state senator Dusty Deevers recently introduced a bill allowing Oklahoma employees and residents to opt to receive salaries in Bitcoin and enable businesses to accept BTC payments. Related Reading: South Korea To Ease Institutional Crypto Investment Restrictions This Year Oklahoma Senator Introduces Bitcoin Freedom Act On January 8, Senator Dusty Deevers announced the Bitcoin […]
Bitcoin market performance has faced a challenging start to the year, marked by a lesser upsurge and more bearish sentiment. Amid these fluctuations, insights from CryptoQuant analyst Avocado Onchain shed light on the current state of Bitcoin’s price movements and the factors influencing them. In a post titled “Bitcoin Price Correction: Short-Term Volatility Amid Long-Term Bullish Outlook,” Avocado analyzed key on-chain metrics, highlighting trends that may define Bitcoin’s immediate and future trajectory. Related Reading: Crypto Liquidations Near $690 Million As Bitcoin, Ethereum Crash On-Chain Metrics Hint At Bitcoin’s Next Move The analyst pointed out that the ongoing decline in Bitcoin’s price has been fueled by several factors, including uncertainty surrounding Federal Reserve rate adjustments, cautious market behavior ahead of political transitions, and concerns over state-held Bitcoin sales, which historically emerge during correction periods. These elements have combined to push market sentiment toward bearish territory. However, Avocado emphasized that the short-term outlook does not necessarily overshadow Bitcoin’s long-term potential for recovery and growth. Avocado’s analysis utilized on-chain data to assess the possibility of additional price corrections. One of the primary indicators examined was the Taker Buy/Sell Ratio (30-day moving average), which revealed a dominance of sell-side activity. Following Bitcoin’s price surge in March 2024 and its recent all-time high, this ratio trended downward, signaling an overheated market. This pattern historically precedes periods of price decline, indicating potential for further corrections. Another metric, the Short-Term Spent Output Profit Ratio (SOPR), which measures short-term investors’ profitability, has dropped below 1. This indicates that many short-term holders are selling at a loss, a behavior that has been observed during prior correction phases. Similarly, the Funding Rates (30-day moving average), a measure of market sentiment among leveraged traders, is trending downward. Negative funding rates often precede a bearish market shift but can also pave the way for eventual recovery once sentiment stabilizes. Avocado wrote: While this analysis focuses on short-term price movements, Bitcoin is likely to rebound in the long run and resume its upward trend after completing the correction phase. Investors should remain strategic, avoid reacting to short-term noise, and focus on the broader bullish trajectory. Related Reading: Bitcoin Is Forming A Symmetrical Triangle – Breakout Or Breakdown? Bitcoin Market Performance Meanwhile, Bitcoin has continued to demonstrate bearish movements especially with its price now trading for $92,317, at the time of writing down by 3.3% in the past day. One of the major factors that have contributed to the ongoing bearish sentiment in the Bitcoin market appears to be the resurfacing of the US government wanting to sell the seized BTC from Silk Road which now amounts to roughly $6.5 billion. The US Govt has been given the greenlight to liquidate 69,000 BTC ($6.5B) from Silk Road, an official confirmed to DB News today Interesting situation less than 2 weeks away from the new admin who vowed to not sell https://t.co/HqD1KnhJK3 pic.twitter.com/xn8ATSEL7H — db (@tier10k) January 9, 2025 Featured image created with DALL-E, Chart from TradingView
Bitcoin journey in the new year continues to demonstrate less upward momentum, with its price recently dropping below the $95,000 price mark. Amid this movement, the market seems to be witnessing a notable trend among miners as they grapple with the effects of rising values and selling pressure. Insights from XBTManager, a CryptoQuant contributor, shed light on the challenges facing Bitcoin miners and the broader implications for the cryptocurrency market. Related Reading: Bitcoin May Rally In Q1 2025 Driven By US Fed’s Money Printing, Predicts Arthur Hayes Miners Feel the Pressure As Bitcoin Remains Below $100K In a post titled “The Strong Remain, the Weak Exit the Market,” XBTManager highlighted that Bitcoin’s appreciation has placed miners in a “precarious” position. The recent price surge above $100,000 initially brought substantial gains for miners, but subsequent corrections have intensified selling activity. According to the analysis, miners have entered a state where their positions are “extremely underpaid,” leading to significant financial strain. XBTManager wrote: Following a sharp pullback in Bitcoin’s price, it entered a correction phase and rose again to the 102k levels, only to trigger another wave of heavy selling. As Bitcoin climbed to 102k, miner positions, which were in a “fairly paid” state, transitioned to an “extremely underpaid” state as selling pressure intensified at that level. Notably, as weaker miners exit the market, those with greater resilience are expected to persist, potentially opening opportunities for investors. XBTManager’s outlook suggests that assuming the current bull market remains intact, the ongoing challenges for miners could present favorable conditions for strategic buying. MVRV Indicator Hints At Bitcoin’s Continued Growth Potential Another CryptoQuant contributor, CryptoOnchain, offered an additional perspective on Bitcoin’s market cycle. Analyzing the 100-day MVRV (Market Value to Realized Value) ratio, CryptoOnchain argued that Bitcoin has “yet to reach its peak” for this cycle. Historical data shows that the MVRV ratio reached a value of 3 during the market tops in the last two cycles. At present, this ratio stands at 2.14, indicating potential for further upward movement. 100-day moving average of MVRV: Bitcoin has not yet reached the top price of this cycle “MVRV metric reached the value of 3 at the market tops in the past two cycles, whereas it currently stands at 2.14… it can be said that Bitcoin is preparing to move towards the top price of… pic.twitter.com/YlNLQwgE3w — CryptoQuant.com (@cryptoquant_com) January 9, 2025 The MVRV metric, which helps identify market tops and bottoms, signals that Bitcoin may be preparing for another price surge in the coming months. Related Reading: Bitcoin Faces Mixed Signals: Institutional Investors Accumulate Amid Retail Weakness If the pattern from previous cycles holds true, Bitcoin could be on track to approach a new peak before the current cycle concludes. CryptoOnchain particularly concluded by noting: Based on this, it can be said that Bitcoin is preparing to move towards the top price of this cycle, which is likely to occur in the coming months. Featured image created with DALL-E, Chart from TradingvIEW
Bitcoin has experienced notable price volatility since the start of the year, with its performance showing mixed signals. Institutional investors, however, appear to have maintained their confidence in the asset despite recent market corrections. According to a recent analysis shared by CryptoQuant contributor caueconomy on the QuickTake platform, institutional players have been strategically accumulating Bitcoin, suggesting long-term confidence in the asset’s value trajectory. Related Reading: Bitcoin Is Forming A Symmetrical Triangle – Breakout Or Breakdown? Bitcoin Institutional Accumulation Signals Market Confidence caueconomy revealed that on December 21, investors sold approximately 79,000 BTC within a week, triggering a significant market correction of around 15%. This sell-off marked a local top and was followed by a phase of price consolidation. However, instead of exiting the market, large investors utilized the price dip to open Time-Weighted Average Price (TWAP) positions, gradually accumulating Bitcoin just below the $95,000 mark. Over the past 30 days, institutional players have added more than 34,000 BTC to their portfolios, creating a layer of buying pressure that supports Bitcoin’s current recovery phase. Interestingly, the analyst pointed out that this trend has been consistent since June 2023, even during periods of rebalancing in institutional portfolios. While retail investor demand has hit a five-year low, institutional interest remains notably strong, indicating a divergence in market behavior between retail and institutional participants. This sustained accumulation suggests that large investors anticipate long-term value Increased Selling Pressure On Binance Sparks Market Concern While institutional accumulation has provided some support for Bitcoin’s price, another CryptoQuant contributor, Darkfost, highlighted growing selling pressure on Binance, one of the world’s largest cryptocurrency exchanges. In a separate analysis, Darkfost noted a sharp increase in hourly Net Taker Volume, which turned significantly negative, peaking at -$325 million — the highest figure recorded in 2025. This surge in selling pressure coincided with the release of unfavorable economic data from the ISM PMI and JOLTs Job Openings reports, which affected broader market sentiment across risk assets, including cryptocurrencies. Related Reading: Bitcoin Signal That Took Price From $69,000 To $108,000 Appears Again The data triggered a wave of sell orders, causing Bitcoin’s price to face additional downward pressure. Darksfost suggested, noting: Monitoring this indicator, along with others, will be essential to determine whether fear is starting to dominate the markets over the long term or if it is merely temporary. Despite this intensified selling activity, Bitcoin has managed to maintain support above the $95,000 level. At the time of writing, the cryptocurrency is trading at $95,586, reflecting a 5.2% decline over the past 24 hours. The price remains significantly below Bitcoin’s all-time high of $108,000, recorded last month, marking an 11.8% drop from its peak. Featured image created with DALL-E, Chart from TradingView
Recent reports revealed that South Korea is set to ease its restrictions on institutional crypto investment. Secretary-General of South Korea’s Financial Services Commission (FSC) announced the watchdog’s plan to review its restrictions amid the ongoing changes in South Korea’s regulatory approach. Related Reading: UK Authorities To Seize $4.3 Million In Bitcoin From Fugitive Crime Boss […]
IMF recommended that Kenya overhaul outdated regulations, address scams and align its crypto framework with global standards for financial stability.
The cryptocurrency market has shown heightened activity in early 2025, with Toncoin (TON) emerging as one of the spotlighted assets following an analysis shared by a CryptoQuant analyst, Burak Kesmeci. According to recent data, the 90-day percent return metric for TON indicates the early stages of an uptrend, raising expectations of a sustained rally in the coming weeks. This trend has been observed historically, with similar metrics signaling substantial gains in past bull cycles. Related Reading: Toncoin Price Recovery Continues — Is The Dwindling Staking TVL Ratio Bullish? Historical Data Suggests Strong Price Potential Kesmeci disclosed that historical analysis reveals that TON has previously demonstrated notable performance following reversals in the 90-day percent return metric. For example, in August 2023, TON rose from $1.72, delivering a 65% gain over 70 days. Similarly, in February 2024, the asset surged by 258% in just 43 days after a similar metric reversal. The most recent example, recorded in November 2024, saw TON climb 32% within 11 days. These instances suggest that when the 90-day percent return metric crosses into positive territory, it often serves as a precursor to significant upward price movement. The current trend, which began just seven days ago, has sparked optimism among investors who are considering short-term accumulation strategies. Kesmeci reveals that if historical trends persist, TON could experience a median gain of 65% over the next 43 days. The analyst wrote: Currently, we observe that the “90-day percent return” metric for TON has entered a bull trend for the fourth time. It has been only 7 days since this reversal. Based on previous data: Expected duration: 43 days (median value) Potential percentage return: 65% (median value) These insights suggest that TON is likely to continue its upward trend in the short term. However, it is worth noting that market conditions and external factors, such as overall sentiment in the cryptocurrency sector, could influence the trajectory of this trend. Toncoin Market Performance Since the year began, Toncoin has been unable to make a significant movement towards the upside. Instead, the altcoin has continued to face consistent decline. Over the past two weeks, TON has now plunged by a double-digit performance of nearly 12%. This has brought the asset’s price to currently trade below $6 as of today marking a 7.5% decline in the past 24 hours. Interestingly, despite the consistent decline from TON in recent weeks, the asset’s daily trading volume has seen an opposite trend. Related Reading: Toncoin Consolidates: Could A Breakout Push TON Higher? Particularly, in the past 7 days, TON’s daily trading volume has moved from $200 million last Wednesday to now sitting at roughly 344 million as of today. Given the current trend in TON’s price, it is worth noting that this increase in TON’s trading volume might be from the continuous selling pressure in the TON market. Featured image created with DALL-E, Chart from TradingView
The market’s New Year rebound turned into a start-of-year retrace after Bitcoin (BTC) dropped from the recently reclaimed $100,000 support into the $94,000 territory. Amid the drop, an analyst shared his “cautiously bullish” outlook for BTC’s price. Related Reading: ‘ADA Wave Is Coming’: Cardano Whales Go On Buying Spree As Price Attempts Breakout Bitcoin Risks Crash To $74,000 On Tuesday, Bitcoin dropped below $97,000, dragging the market into the first pullback of the year. BTC began 2025 trading around the $92,000 level but climbed around 6.5% in the following days. After turning the $98,000 resistance into support over the weekend, Bitcoin jumped back above $100,000, reaching its highest price in weeks. However, BTC struggled to maintain this key support zone, dipping 3% in an hour yesterday. The cryptocurrency has dropped another 2.5% in the past day, falling as low as $94,500 on Wednesday morning. Since then, BTC has hovered between $94,800 and $95,600, briefly testing the $96,000 resistance. Crypto analyst Ali Martinez examined BTC’s recent performance. In an X threat, the analyst noted that Bitcoin had “breached the right shoulder of a head-and-shoulders pattern” on Monday, invalidating the bearish setup pattern. However, the reversal “erased those gains, dragging BTC back below the right shoulder and reigniting bearish concerns,” as this pattern could trigger a correction to at least $78,000. Martinez also pointed out that Bitcoin has fallen below a key demand zone, between $95,400 and $98,400, where 1.77 million addresses acquired over 1.53 million BTC. The analyst suggested the price drop could force these holders to “sell some BTC to cut potential losses.” He also noted there isn’t significant resistance ahead for the flagship crypto, with only a minimal supply wall of 107,000 BTC between $104,700 and $105,770. Nonetheless, the analyst warned that a surge in selling pressure that pushes the cryptocurrency below the $92,000 mark “could spell trouble,” as it would open “the door to a steep drop, with little support until $74,000.” “Therefore, the current market conditions, from a macro perspective, are reigniting fears of a potential Bitcoin crash,” he added. BTC Price Set To Bounce Soon? The analyst also shared a “cautiously bullish” outlook for BTC from a technical perspective. Martinez pointed out that TD Sequential presented a buy signal on Bitcoin’s 4-hour chart, suggesting a potential price rebound if the price can hold the $93,500 support zone. Additionally, he highlighted that traders on Binance “are leaning bullish on Bitcoin,” as 61.28% of all traders on the crypto exchange with open positions are betting that the price will go up. Martinez also noted that $35 million would be liquidated if BTC’s price rebounds to $98,600, suggesting that market makers “may try to grab” it. Similarly, there’s another $66 million liquidation zone above $103,300. Related Reading: Crypto Trader Makes $21 Million From AI Agent Token As Sectors Faces Backlash However, the analyst emphasized that Bitcoin must reclaim the $100,000 support to invalidate the bearish outlook and “set its sights on new all-time highs.” Martinez concluded that BTC could rebound to $98,600 in the short term, but “the macro suggests caution.” As of this writing, Bitcoin is trading at $94,500, a 3.3% retrace in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Ripple president Monica Long added that XRP will likely receive its spot ETF approval “very soon.”
A UK judge has ordered the seizure of $4.3 million in Bitcoin (BTC) from a British crime lord known as “Don Car-Leone.” The ruling comes after the fugitive failed to prove the crypto holdings weren’t related to criminal activities. Related Reading: Bitcoin ETFs Dominate 2024: Crypto Fund Flows Hit Record $44.2 Billion Inflows – Report […]
HashKey Group, a prominent Asia-based cryptocurrency financial services firm, has successfully obtained Virtual Asset Service Provider (VASP) registration approval from the Central Bank of Ireland through its European arm, HashKey Europe Limited (HEL). This milestone marks a significant step in HashKey’s global expansion strategy, as it is “HashKey Group’s first VASP license fully compliant with […]
Bitcoin (BTC) has seen bullish but unsteady price action in early 2025, with recent data highlighting shifting sentiment among US investors. After briefly crossing the $102,000 mark yesterday, the asset has struggled to maintain upward momentum, shedding most of its recent gains as it stands at just below $100,000. These developments coincide with critical insights from key on-chain metrics that offer a clearer view of Bitcoin’s short-term trajectory. Related Reading: Bitcoin Forms First Daily Death Cross On Dominance Chart In 4 Years, What To Expect Next Bitcoin’s Price Struggles Despite Positive Coinbase Premium Index Signal A CryptoQuant analyst known as Burak Kesmeci recently shared insights on the Coinbase Premium Index (CPI), which turned positive for the first time in 2025. The CPI measures the price difference between Bitcoin on Coinbase and other global exchanges, serving as a crucial indicator of US investor sentiment. 3 days ago, Coinbase Premium Index crossed SMA14 for the 1st time in 26 days—Bitcoin is now up 4% to $102K. In Nov 2024, a similar move saw Bitcoin rally from $69K to $108K. U.S. buyers could be back in action. pic.twitter.com/XtAlHUzzvv — CryptoQuant.com (@cryptoquant_com) January 6, 2025 Alongside this positive shift, a notable 4,012 BTC outflow from Coinbase was recorded, signaling renewed buying interest among US-based investors. Historically, such patterns have been associated with a rise in buying pressure, often laying the groundwork for potential price surges. Despite these positive signals, Bitcoin’s price performance remains restrained. After briefly surpassing $102,000 on December 6, Bitcoin retreated and now trades below $100,000, reflecting a modest 3.3% decrease over the past 24 hours. This price mark from the largest cryptocurrency by market capitalization puts it at approximately 8.9% below its all-time high of $108,135, achieved in December 2024. Bitcoin Faces Key Resistance Levels Notably, the current price action from BTC suggests that while buying pressure exists, it may not yet be sufficient to trigger another strong rally. According to cryptocurrency analyst Ali, Bitcoin maintains a critical support zone between $95,400 and $98,400, where over 1.77 million addresses collectively hold 1.53 million BTC. Related Reading: Bitcoin’s Miner Sentiment Signals: Are We Nearing a Market Rebound? This support zone remains essential for stabilizing Bitcoin’s price amid market uncertainty. Conversely, resistance appears limited, with only 107,000 BTC supply positioned between $104,700 and $105,770. This relatively thin resistance could pave the way for upward movement if buying pressure intensifies. #Bitcoin sits well above an important support zone between $95,400 and $98,400, where 1.77 million addresses bought over 1.53 million $BTC. However, there isn’t significant resistance ahead, only a minimal supply wall of 107,000 #BTC between $104,700 and $105,770. pic.twitter.com/MEATFegTV2 — Ali (@ali_charts) January 7, 2025 Meanwhile, zooming out, analysts remain bullish overall on Bitcoin. Captain Faibik for instance has recently shared his outlook on BTC suggesting that the asset is still poised for a rally to $112,000. Featured image created with DALL-E, Chart from TradingView
The cryptocurrency market, led by Bitcoin, has often followed a pattern of alternating growth and decline cycles, reflecting investor sentiment and market fundamentals. Since the beginning of the current bull cycle in January 2023, Bitcoin has demonstrated substantial gains in both price and market duration. Increased capital inflows from new investors have supported this growth and existing participants are reinvesting their profits. However, recent indicators suggest that the market may now be entering the latter stages of this cycle, raising questions about what lies ahead for Bitcoin and the broader crypto market. Related Reading: MARA CEO Advocates “Invest And Forget” Approach To Bitcoin, Citing Strong Historical Performance Key Indicators Point to Cautious Optimism A significant metric supporting this observation is the percentage of Bitcoin traded within the past month based on realized market cap – UTXO, which currently sits at 36%, according to a recent analysis shared by a CryptoQuant analyst known as Crypto Dan. In the analysis, Dan reveals that while this figure remains lower than peak levels observed in previous bull cycles, its downward trajectory suggests that the market is “progressing toward its cycle peak.” Dan anticipates that this peak could occur sometime between Q1 and Q2 of 2025. However, rather than a single explosive surge, historical trends indicate that the ratio could experience sharp increases two to four more times before the cycle concludes. This pattern typically signals market overheating, followed by a subsequent correction or bear cycle. Dan further highlighted that while the market still holds potential for gains, a conservative approach to risk management is advisable. Historically, late-stage bull cycles have been marked by increased volatility, as profit-taking begins to influence market behavior. Dan wrote: Nevertheless, from a conservative standpoint and with risk management in mind, caution is advised. For this reason, I am planning to gradually sell my holdings. Another critical observation from on-chain data is the relationship between short-term traders and long-term holders. Historically, a sharp increase in short-term trading activity often precedes a market correction. Traders who entered the market during recent price rallies may begin to sell off their holdings, leading to temporary downward pressure on prices. Conversely, long-term holders often remain resilient during these periods, providing a stabilizing force in the market. Bitcoin Sees Recovery As The New Year Begins After weeks of struggling and remaining below $100,000 in the last month of 2024, Bitcoin appears to have now resumed its bullish momentum as the first month of 2025 commences. Although, BTC entered the new year with a price below $95,000. However, a few days later, the asset continued its upward momentum, reclaiming the $100,000 price mark to currently trade at a price of $101,624. At the time of writing, BTC recorded a 3.9% increase in the past day bringing its price closer to its recently established all-time high above $108,000 last month. Featured image created with DALL-E, Chart from TradingView
Some crypto traders have made millions of dollars from the latest leading narrative, Artificial Intelligence (AI) related tokens. However, the sector’s quick rise in popularity has received backlash from several community members and industry figures, who consider the tokens “worse” than the memecoin trend. Related Reading: Bitcoin Bounces Back Above $100K – Is the Bull Run Resuming or a Correction Ahead? Crypto Traders Make Millions From AI-Related Tokens On January 6, on-chain data analysis firm Lookonchain shared that a smart Solana trader obtained massive returns from AI agent and memecoin ai16z (AI16Z). The investor turned $2 million into $21 million in less than two months amid the AI-related tokens rally. The AI-managed crypto fund is on the Solana blockchain and governed by the ai16zDAO. Its name is a wordplay originating from the venture capital firm Andreessen Horowitz, also known as a16z, seemingly created to bring attention to the project. According to the post, the whale purchased 10.6 million ai16z, worth $2.27 million, between November 15 and November 22, 2024, at an average cost of $0.214. Since then, the cryptocurrency has seen a 965% surge to trade around $2.28. At the time of the report, the investor’s holdings were valued at around $21 million, making $19 million in unrealized profits. Earlier today, the whale sent 5.3 million ai16z, worth $10.68 million, into Jupiter to sell via limit order. Meanwhile, another trader turned $123,000 into $4.5 million after betting on ai16z when the token’s market capitalization was $22 million. The whale purchased 6.17 million ai16z and sold 4.67 million for around $1.78 million last month. The investor currently holds 2.65 million ai16z tokens, valued at $2.9 million, bringing the total profits to more than $4.5 million in two months. This whale also made another $13.4 million from other AI crypto tokens like GOAT, FARTCOIN, and ARC. Community Calls AI Agent Tokens ‘Overrated’ In late 2024, AI Agent tokens gained massive popularity among crypto investors, with several experts predicting that AI-related tokens, alongside memecoins, would be the largest narrative of this year. Meanwhile, AI memecoins stole the spotlight as the year ended, sending some of the tokens in the sector to the top 10 memecoins ranks in late December. Ai16z, the largest AI memecoin by market capitalization, has seen a 251% increase in the past month, hitting an all-time high (ATH) of $2.47 on January 2. The token is also the third-largest AI agent crypto and has seen a 25% surge in the last 24 hours, trading between $2.25 and $2.28 throughout Monday morning. Nonetheless, the sector has received heavy criticism recently from the crypto community. On-chain sleuth ZachXBT recently called AI agent tokens a scam. Responding to Justin Taylor, another industry member, the crypto detective stated that “99% of it is a scam” and suggested that “the AI agent wrapper grifts are probably worse than other past trends.” Related Reading: Litecoin Comeback: LTC Breaks Free And Guns For $400 Zach argued that memecoins “at least” promised nothing, “AI coins try to larp as much as possible to appear legit to unsuspecting buyers.” Similarly, Solana founders consider AI agent tokens to be overhyped. According to an anonymous poll of 42 Solana founders, several of the polled considered AI Agents, alongside Blinks, to be the “most overrated Solana sector.” Despite the criticism, the sector still registers a 5% increase in the last 24 hours, with a daily trading volume of $2.28 billion and a market capitalization of $17.5 billion, according to CoinGecko data. Featured Image from Unsplash.com, Chart from TradingView.com
Authorities worldwide appears to be ramping up efforts to combat cryptocurrency scams and AI-related fraud, as these threats continue to evolve and target unsuspecting victims. Recent cases from Vietnam, the United States, and Hong Kong highlight the growing sophistication of these criminal activities and the global response aimed at dismantling these operations. Notably, with cryptocurrency […]
After weeks of trading below the critical $100,000 mark, Bitcoin has started 2025 with renewed bullish momentum. The cryptocurrency, which had been struggling since last month, has shown signs of recovery, climbing back above the psychological $100,000 threshold earlier today for the first time in recent weeks. Bitcoin entered the year trading between $93,000 to $95,000 but has now regained momentum as its current trading price sits at $102,368. Over the past 24 hours, Bitcoin has surged by a 4.5% increase, bringing it closer to its all-time high of $108,000 achieved in late 2024. This upward movement has reignited optimism among both retail and institutional investors, with many closely watching key market indicators to understand whether Bitcoin can sustain this momentum or if another correction might be on the horizon. Related Reading: Bitcoin Forms First Daily Death Cross On Dominance Chart In 4 Years, What To Expect Next What Bitcoin Short-Term Holder Realized Price Indicates CryptoQuant analyst Yonsei Dent recently shared an analysis of Bitcoin’s price dynamics, highlighting the role of the Realized Price of Short-Term Holders (STH) as a key breakeven point. The Realized Price represents the average purchase price of Bitcoin by short-term holders, segmented into two critical bands: 1-week to 1-month (1W-1M) and 1-month to 3-month (1M-3M). Historically, the 1M-3M band has consistently acted as a medium-term support zone, while the 1W-1M band reflects short-term market sentiment. When the gap between these two bands widens, Bitcoin often experiences consolidation or corrective phases until they converge again. Currently, Bitcoin is encountering resistance at the 1W-1M band. However, the 1M-3M band continues to provide strong support, indicating a potential accumulation opportunity for medium-term investors. Yonsei Dent emphasized that monitoring the interaction between these two bands is essential for identifying market trends. As they move closer together, Bitcoin may experience a period of relative stability before determining its next significant price direction. Further Upward Momentum Expected? Another CryptoQuant analyst, Joohyun Ryu, provided insights into Bitcoin’s recent correction phase, noting that while the market exhibited signs of cooling, key indicators suggest a potential rebound. Metrics such as Market Value to Realized Value (MVRV), Adjusted Spent Output Profit Ratio (aSOPR), and Net Unrealized Profit/Loss (NUPL) offer valuable context for assessing market sentiment. The MVRV ratio currently stands at 2.358, indicating that Bitcoin is trading at a moderate premium relative to its realized value. Similarly, the aSOPR metric, currently at 1.02, suggests that Bitcoin transactions are still yielding profits on average. Meanwhile, the NUPL value of 0.58 reflects a market sentiment that remains in a state of optimism despite recent price fluctuations. Ryu also highlighted the continued activity of short-term holders, noting their consistent market participation despite recent volatility. Related Reading: Analyst Identifies Bitcoin Key Support Levels Amid Rebound Challenge – Details This steady influx of new investors suggests growing confidence in Bitcoin’s long-term value proposition. Historically, such behavior has preceded significant upward price movements, reinforcing the notion that the recent market cooling phase may set the stage for a potential breakout. Featured image Created With DALL-E, Chart from TradingView
Pudgy Penguins’ NFT sales have plummeted 52% in the past week,
On Thursday, the South Korea Stock Exchange chairman, Jeong Eun-bo, revealed their plan to “explore” the approval of crypto-based exchange-traded funds (ETFs) to continue with its “value-up program” and face the ongoing market challenges. Related Reading: Indonesia Rushes To Finalize Crypto Oversight Transfer Ahead of Jan. 12 Deadline – Report Korea Exchange To Explore Crypto […]
The Bitcoin market continues to draw attention as key on-chain indicators reveal insights into miner sentiment and Bitcoin’s quarterly performance trends. A recent analysis by CryptoQuant analysts highlights how shifts in miner sentiment correlate with Bitcoin price movements, while year-end data paints a picture of Bitcoin’s overall market behavior in 2024. These insights are critical for investors looking to navigate Bitcoin’s market dynamics and anticipate potential trends in 2025. Related Reading: Can Bitcoin Price Reach A New All-Time High? This Golden Cross Suggests So The Role of Miner Sentiment In Market Dynamics Miner sentiment is often viewed as a crucial metric in predicting Bitcoin price movements. Historically, negative miner sentiment—typically observed through indicators like hashrate, difficulty, block count, and block rewards—has often signaled market bottoms or the early stages of recovery trends. Additionally, the relationship between miner sentiment and Bitcoin price movements has remained consistent across various market cycles. A CryptoQuant analyst known as datascope pointed out that periods of sharply negative miner sentiment, highlighted by significant drops in hashrate and increased block production difficulty, often precede substantial price recoveries. This phenomenon was evident during Bitcoin’s market cycles in 2017, 2018, and 2020, where negative miner sentiment coincided with market bottoms and subsequent rallies. In the context of the current market phase, the analyst observed heightened miner sentiment volatility, suggesting increased uncertainty and potential market corrections. However, the data also indicates that significant declines in miner sentiment often create strategic buying opportunities. Furthermore, with Bitcoin mining profitability becoming more challenging due to increasing difficulty levels, miner behavior is expected to play an even more prominent role in determining market sentiment in the coming months Bitcoin Year-End Performance Overview In addition to miner sentiment, Bitcoin’s overall market performance in the final quarter of 2024 offers important insights. According to another CryptoQuant analyst known as Crazzyblockk, Bitcoin’s market capitalization increased by 55%, while its realized capitalization rose by 28.9% during Q4 of 2024. Although these figures represent substantial growth, they fall slightly below the 58% market cap growth seen in Q1 2024. However, the realized cap growth in Q4 outpaced that of Q1, indicating stronger capital inflows into Bitcoin during the final months of the year. When compared to previous Bitcoin cycles, the gains in Q4 2024 were more measured than the sharp increases seen during earlier bull runs. Historically, during peak bullish phases, Bitcoin often recorded market cap growth nearing 100% and realized cap gains of 50-70%. Related Reading: $33.14 Billion At Risk If The Bitcoin Price Hits $72,462, Here’s Why Regardless the analyst mentioned that Q4 2024 can be considered to be “Bitcoin’s best quarter of the year.” Looking ahead to 2025, Crazzyblockk appears to remain cautiously optimistic about Bitcoin’s long-term growth potential. The analyst noted: While history does not always repeat itself, we can cautiously speculate that the bullish sentiment among Bitcoin holders leaves room for long-term growth in 2025. However, this does not rule out the possibility of short-term corrections along the way Featured image created with DALL-E, Chart from TradingView
A California man, Ken Liem, has taken legal action against three prominent Asian-based banks—Fubon Bank, Chong Hing Bank, and DBS Bank—for allegedly facilitating a $1 million cryptocurrency scam. The lawsuit, filed in a California district court on December 31, 2024, claims that these banks failed to meet fundamental financial compliance requirements, including Know Your Customer […]
The Bitcoin (BTC) market is currently experiencing significant shifts in supply dynamics, with notable activity between long-term holders (LTHs) and short-term holders (STHs). According to the latest analysis from CryptoQuant, historically, such transitions have often indicated local market tops or even cycle peaks, depending on the overall market environment and broader economic conditions. Presently, demand from short-term holders continues to play a critical role in supporting Bitcoin’s price stability amid ongoing market volatility. Related Reading: Bitcoin Remains Below $100,000: Is the Bull Market Over or Just Taking a Breather? Long-Term Holders Vs. Short-Term Buyers The analysis made by the CryptoQuant analyst Darkfost revealed that the short-term holders, particularly those who acquired Bitcoin in recent months, are actively influencing market sentiment. By analyzing the realized price data of various short-term acquisition periods, distinct support and resistance levels become apparent. These realized price levels include $41,000 for the general average realized price, $85,000 for short-term holders overall, $99,000 for holders within one week to one month, $81,000 for one to three months, and $60,000 for three to six months. These figures reflect key psychological and technical price points where market participants may make significant buy or sell decisions, according to Darkfost. The analyst revealed that the Short-Term Holder Spent Output Profit Ratio (STH SOPR) currently remains neutral at 1 after declining from Bitcoin’s last rally, which pushed its price to an all-time high of $108,000. The STH SOPR serves as a key metric to evaluate short-term holders’ profit-taking behavior. A neutral SOPR indicates that recent selling activity from short-term holders has not been significantly profitable, reducing the incentive for widespread sell-offs at current price levels. However, this neutral stance suggests potential headwinds for an immediate bullish recovery. The decline in STH SOPR points to diminishing realized profits, which could slow down upward momentum in the short term. Despite these challenges, short-term holders’ demand has managed to absorb much of the selling pressure from long-term holders, preventing sharp price declines. Darkfost wrote: In conclusion, the selling pressure from LTHs has so far been fairly well absorbed by the buying pressure from STHs. However, we note that the STH SOPR is declining, which could hinder an immediate bullish recovery. In the short term, a period of consolidation or even a deeper correction might occur. Bitcoin Market Performance And Outlook Meanwhile, Bitcoin is currently trading at a price of $97,357 after recording a slight increase of 1.1% in the past day. Related Reading: Bitcoin Price Moves From 56 To 60-Day Cycle After Crash Below $100,000, What To Expect Next While this uptick has helped BTC regain positive momentum in recent weeks, it remains insufficient to propel the cryptocurrency back to the six-digit price mark or its all-time high above $108,000. Featured image created with DALL-E, Chart from TradingView
The market is recovering from the end-of-year bleeding that dragged most cryptocurrencies, including Bitcoin (BTC), to monthly lows. As the flagship crypto retests key levels, some analyst shared their predictions for the 2025 bull market and BTC’s performance. Related Reading: Solana-Based Pump.Fun Records $15 Million Daily Revenue As Memecoin Mania Continues Bitcoin Correction Close To An End? Over the last three days, Bitcoin has slowly climbed back to the $96,000 level, briefly trading near the $98,000 mark on Thursday afternoon. Last week, the flagship crypto lost this key range, failing to reclaim it for six days. This zone served as a crucial bounce point since mid-November. However, the New Year recovery sent BTC’s price up nearly 5%, with Bitcoin trading above $96,000 for the past day. Some crypto analysts previously suggested that reclaiming the $97,300 support zone is crucial to reverse BTC’s short-term bearish trend. This level was retested yesterday for the first time in over a week but failed to hold. Despite this, crypto analyst Rekt Capital noted that week 9 of its post-halving “Parabolic Upside Phase” is “slowly ending,” suggesting that BTC’s correction will likely be over soon. The analyst explained Bitcoin enters a parabolic period that lasts around 300 days each cycle after every Halving event. Historically, BTC registers the first major retrace a month after entering price discovery mode. The first “Price Discovery Correction” starts between Weeks 6 and 8 of each parabolic phase and sees pullbacks by at least 25%. This cycle, Bitcoin’s retrace started on Week 7 and saw a 15% correction, which some analysts suggest is due to the trend of smaller corrections. Rekt Capital stated that “once Bitcoin clears its historically corrective weeks,” the flagship crypto will offer plenty of reasons to be bullish. Similarly, the analyst pointed out that BTC’s peak will likely come this year, followed by the “very beginnings of a brand new bear market.” However, he explained that most of the bear market will occur next year, lasting “some 365+ days and be between -65% to -80% deep.” BTC To Perform Well In Q1 Daan crypto trades highlighted that Bitcoin has been “chopping around the $100K level for 6 weeks now, we’ve built up a good amount of liquidity in this area.” He added that from the $100,000 mark and above, “there should be plenty of fuel to propel this higher.” Moreover, the trader noted that BTC is “trading right around the high volume node. Meaning, most volume was traded between these prices. Generally, price moves easier when its able to break away from such a high volume area. The 4H 200MA is guarding that breaking on the top side. The 4H 200EMA below is offering support.” Related Reading: Bitcoin Retests $95,000 Amid 4.2% Surge, Is A New Year Rebound Coming? Daan asserted that a break above the $98,000 mark could “get the party started and start the run back to the all-time highs,” while holding the $95,000 support zone key in the short term. Ultimately, he considers there will be “an interesting race between BTC and ETH this quarter,” as the market’s performance during Q1 is usually “pretty positive.” Based on this historical performance, the trader expects the leading cryptocurrencies to perform well throughout the start of the year. As of this writing, Bitcoin is trading at $97,071, a 1% increase in the weekly timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Popular Solana-based Launchpad Pump.fun started 2025 with a record-breaking $15 million daily revenue amid the ongoing frenzy surrounding memecoins. The sector continues to be the best-performing narrative of the cycle, driving millions into the hands of investors. Related Reading: Altcoins To Explode In Early 2025: Analyst Says “Grand Finale” Is Around The Corner Pump.Fun Sees Record-Breaking Daily Revenue Memecoins have been this cycle’s largest narrative, with Solana-based tokens stealing the spotlight throughout 2024. This trend is seemingly set to continue this year after Solana’s launchpad Pump.fun saw a record-breaking performance on January 1st, 2025. Last year, Pump.fun cemented itself as the most popular token launcher for simplifying the creation of memecoins and facilitating token deployment. During Q3 2024, the launchpad surpassed Ethereum and most Solana protocols, doubling the fees and revenue of these projects. The remarkable success of Pump.fun saw the creation of several competitors, including the Tron-based SunPump and multi-chain platform GraFun. Despite being banned in the UK in December, the launchpad’s performance remained steady, recording a daily revenue between $2 million and $3 million throughout the month. As of this writing, the platform has deployed 5.39 million tokens since its launch and generated over 2.02 million SOL in revenue, worth $418.7 million at current prices. Moreover, the Solana launchpad started 2025 with a new record-breaking day, surpassing its previous milestone. According to Dune Analytics data, Pump.fun registered 72,506 SOL, around $15 million, in daily revenue this Wednesday. This performance represents a nearly 30% increase from the 55,000 SOL recorded in late November. Additionally, the launchpad continued to dominate Solana decentralized exchange (DEX) transactions last month. Dune data shows that Pump.fun-related transactions accounted for 52.8% of all SOL DEX transactions in December. Memecoin Mania Continues Despite Criticism The platform’s success has also brought heavy criticism. At the end of 2024, Pump.fun received criticism after several users broadcasted harmful and violent content using its Livestream feature. In late November, users created numerous memecoins using controversial prompts to become viral and pump their tokens. The trend started after a 12-year-old livestreamed himself rugging a memecoin. Amid the livestream chaos, the Solana launchpad registered its largest revenue day, recording 55,832 SOL, worth around $11 million, in a single day. However, the incident resulted in backlash from the crypto community and the temporary shutdown of the feature. Moreover, on-chain data analysis firm Lookonchain reported that Pump.fun deposited over 355,608 SOL to Kraken during the last day. This brings the total tokens sent to the exchange to 1,564,064 SOL and the amount sold to 264,373 SOL for 41.64 million USDC. The platform’s transfers and sell-offs have also received significant backlash, with community members driving comparisons between the Solana-based launchpad and the Ethereum Foundation. Related Reading: Bitcoin Retests $95,000 Amid 4.2% Surge, Is A New Year Rebound Coming? Nonetheless, the memecoin narrative continues to dominate the crypto market, with the “Solana Meme” category on CoinGecko recording a 12.5% increase to a market capitalization of $20.9 billion in the last 24 hours, suggesting that the trend is likely to extend. Newer players like ai16z (AI16Z) and Fartcoin (FARTCOIN) saw an 8.9% and 43.7% daily surge to hit new all-time highs (ATHs) on January 2nd. Ultimately, these relatively new tokens have stolen the sector’s spotlight, making it to the top 10 memecoin list in record time. Featured Image from Unsplash.com, Chart from TradingView.com
The Indonesian government is reportedly racing to finalize the authority transfer to oversee the crypto industry from the Commodity Futures Trading Agency (Bappebti) under the Trade Ministry to the Financial Services Authority (OJK) ahead of its approaching deadline. Related Reading: Montenegro Extradites Do Kwon: Authorities Hand Terra Founder Over To The FBI Indonesia’s Crypto Oversight […]
The Bitcoin market has been experiencing a phase of correction in recent weeks following its recent surge beyond $108,000. This decline has led to growing concerns among investors about whether the market is entering a prolonged cooling-off period or if this correction signifies the end of the bull cycle. However, historically, such phases have been common in Bitcoin’s market cycles, often followed by periods of renewed upward momentum. Analysts are now turning to key on-chain metrics to provide insights into the current phase and its implications for Bitcoin’s price trajectory. Related Reading: Market Alert: Bitcoin’s $81K Support Zone Could Decide Its Next Big Move Key On-Chain Indicators Reflect Market Sentiment A CryptoQuant analyst known as Avocado Onchain recently shared an analysis suggesting that the market remains within a broader bull cycle. Using on-chain indicators such as the Adjusted Spent Output Profit Ratio (SOPR), Miner Position Index (MPI), and funding rates, the analyst outlined the current state of Bitcoin. According to the report, the SOPR (7-day Simple Moving Average) remains above 1 but is trending downward, indicating reduced profit margins for sellers. This metric often acts as an early signal of market sentiment shifts, with drops below 1 historically triggering rebounds as selling pressure subsides. The report further analyzed Bitcoin’s Miner Position Index (MPI). This index measures miner behavior, particularly their tendency to sell Bitcoin in anticipation of significant market events, such as halving cycles or peak price levels. The current trend in MPI shows no significant outflows from miners to exchanges, suggesting that large mining operations are holding their Bitcoin reserves. Avocado added that this indicates confidence in the long-term value of Bitcoin, even as short-term volatility persists. However, periodic sell-offs to cover operational costs are still expected. Another important indicator highlighted by the CryptoQuant analyst is total network fees, measured using a 7-day Simple Moving Average (SMA). This metric reflects transaction activity and overall on-chain engagement. Avocado disclosed that the recent decline in network fees suggests reduced trading activity and a temporary cooling-off phase in market participation. Historically, such periods of lower transaction activity have preceded periods of renewed bullish momentum, especially when other indicators align with this trend. Bitcoin Funding Rates And Investor Sentiment Funding rates, another significant indicator in the analysis, have shown a downward trend. Funding rates represent the cost of holding long or short positions in Bitcoin futures contracts and are often used to gauge market sentiment. During bull cycles, sharp drops in funding rates have often been followed by rebounds, as bearish sentiment reaches an extreme point and buyers return to the market. Related Reading: Bitcoin Price Eyes Fresh Gains: Can Bulls Break Through? The analyst emphasized that while current on-chain data suggests a cooling-off phase rather than the end of the bull cycle, short-term price movements remain uncertain. Historically, funding rate drops have served as buying opportunities for long-term investors, particularly during periods of heightened market pessimism. Featured image created with DALL-E, Chart from TradingView
The ongoing legal battle between collapsed crypto lending platform Celsius and bankrupt cryptocurrency exchange FTX appears to have now entered another phase. Celsius recently filed a notice of appeal against Judge John T. Dorsey’s ruling, which “disallowed its $444 million claim” against FTX. According to reports, the dispute stems from the collapsed crypto lending platform’s […]
As the year ends, a renowned analyst suggested that Bitcoin (BTC) could have a New Year rebound after the flagship crypto surged by 4.2% to retest a key level. Related Reading: Altcoins To Explode In Early 2025: Analyst Says “Grand Finale” Is Around The Corner Bitcoin Sees End-On-Year Slowdown Bitcoin has struggled to hold the mid-zone of its one-month price range as the crypto market experiences an end-of-year slowdown. In December, BTC surpassed the $100,000 barrier for the first time, reaching a new all-time high of $108,353 mid-month. Over the last 30 days, the flagship crypto has moved between $90,000 and $108,000, hovering between $96,000 and $102,000 for most of the month. Nonetheless, Bitcoin has registered a 10.5% decline since hitting its ATH, failing to hold the $98,000 level over the last two weeks. The largest cryptocurrency by market capitalization saw a brief recovery on December 25 but quickly lost its Christmas rally gains. Since then, BTC’s price recorded its deepest retrace since the start of December. Bitcoin fell below the crucial $92,000 support zone on Monday, dipping to $91,530 before recovering, raising concern about BTC’s monthly close. However, New Year’s Eve started with a 4.2% surge throughout the morning, fueling end-of-year optimism about a price rebound. The cryptocurrency’s price moved from $92,000 to $96,000 before retracing to the $95,000 support zone. As the BTC’s price climbed, crypto analyst Ali Martinez noted that the TD Sequential showed a buy signal on the 12-hour chart, potentially signaling a New Year’s Day price bounce. ‘All Is Well’ For BTC’s Rally Martinez suggested that “a sustained close above $94,700 could lead to a rebound to $97,500.” As the analyst previously pointed out, this level is one of BTC’s most significant support zones, and reclaiming it is key for the cryptocurrency’s short-term rally. On the contrary, “losing $92,500 as support will invalidate the bullish signal,” Martinez added. Losing this level could also send BTC to the $70,000 level based on the UTXO Realized Price Distribution (URPD) chart. The analyst has stated that a 25% crash to the $70,000 mark is possible, as the URPD chart shows minimal support below the key support wall. Related Reading: Ethereum’s Large Consolidation Trend Points To Possible Price Explosion To $8,000 Meanwhile, James Van Straten noted that “all is well” despite BTC’s current price action. The analyst highlighted that “this cycle as with the previous three cycles for BTC, all saw corrections at this point after the halving,” adding that the “corrections are starting later and finishing later. Maybe, to do with elongated cycles.” As of this writing, Bitcoin is trading at $94,949, a 1% increase in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Amid Bitcoin continuous correction in recent weeks, there has been a significant drop in BTC’s trading volume on Binance, the world’s largest crypto exchange raising concerns about the implications for the market. A CryptoQuant analyst has highlighted in a report that both spot and futures trading volumes for the BTC/USDT pair have witnessed a sharp decline. This reduction in activity suggests weakened buying power and decreased liquidity, two critical elements in maintaining price stability in the cryptocurrency market. Related Reading: Bitcoin Sentiment Now Worst Since Mid-October: Reversal Signal? Trading Activity on Binance Signals Caution for Bitcoin Traders The analyst known as Crazzyblockk disclosed that the drop in trading volume is particularly important as centralized exchanges like Binance play a pivotal role in balancing supply and demand dynamics. A decline in trading activity typically indicates reduced demand, leaving the market more vulnerable to price swings. With fewer active buyers, any significant sell-off could trigger rapid price declines, amplifying volatility across the broader Bitcoin market. Crazzyblockk urges caution, advising traders to avoid impulsive decisions. The analyst wrote: Given the current market conditions, it is advisable to exercise extra caution and avoid making impulsive decisions. Even small shifts in buying or selling pressure could lead to significant volatility in the Bitcoin market. Adding to this concern is the observation that Binance’s taker buy-sell ratio has tilted toward sellers. This metric, which measures whether aggressive buyers (takers) are purchasing or selling more actively, suggests that sellers currently dominate market activity. Taker Buy-Sell Ratio Hints at Market Sentiment Shift The taker buy-sell ratio is an essential indicator for understanding market sentiment, especially on Binance, which handles a significant portion of global Bitcoin trading. Crazzyblockk has reported a noticeable shift in this ratio over recent weeks, with sellers becoming increasingly dominant. When sellers aggressively fill more orders than buyers, it signals bearish sentiment and raises the likelihood of continued downward price movement. This shift follows weeks of weak buyer activity, suggesting that bullish momentum has stalled. However, it remains unclear whether this pattern will persist or reverse in the coming days. Crazzyblockk noted: If this trend persists and the inclination remains toward sell contracts, a deeper market correction could be anticipated. However, a resurgence in buyer activity might stabilize prices and restore confidence among market participants. Despite these concerns, it is worth noting that the current situation can be seen as a potential buying opportunity, especially for long-term investors. Related Reading: Bitcoin Faces Key Moment: Will $93,257 Support Hold Or Break Below? Historical patterns suggest that periods of low trading volume and bearish sentiment often precede major market rebounds. However, it is still advised to remain cautious and avoid speculative trading strategies in the current market environment. Featured image created with DALL-E, Chart from TradingView