As Ethereum attempts to rally alongside Bitcoin, the asset appears to have been spotlighted as analysts assess its fundamentals to grasp what is ongoing behind the scenes. A key factor influencing ETH’s price so far, according to the latest analysis, is the relationship between net flows on spot exchanges and investor behaviour. Net flows measure the balance between Ethereum entering and exiting exchanges, providing a critical indicator of potential price trends. Related Reading: Ethereum May Retest $3,700 Before a Major Rally, Analyst Predicts Net Outflows And Conditions For Ethereum Price Growth Notably, net outflows typically signal bullish sentiment as investors transfer their ETH to cold wallets, reducing selling pressure on the market. In contrast, an increase in net inflows often reflects readiness to sell, which can create downward pressure. According to CryptoQuant analyst cryptoavails, these patterns in Ethereum’s net flow data have played a notable role in past price cycles. For example, in early 2022, when Ethereum’s price dropped from $4,000 to $1,000, net inflows were dominant, indicating heightened selling activity. However, the trend reversed in July 2022, with net outflows supporting Ethereum’s gradual price recovery. For Ethereum to maintain an upward trend, the analyst highlights that sustained net outflows are essential. When ETH is withdrawn from exchanges, the circulation tightens, reducing selling pressure. This supply-demand imbalance can favor higher prices as investor confidence grows. Particularly, a steady pattern of net outflows signals that investors are holding Ethereum long-term, suggesting an environment for price appreciation. However, cryptoavails mentioned that Ethereum’s growth momentum remains sensitive to sudden market shifts. A significant influx of ETH back onto exchanges could increase selling pressure, leading to short-term corrections. The analyst wrote: This dynamic supports upward pressure on the price. However, sustainability is crucial—sudden net inflows can lead to short-term selling pressure, weakening the trend. What This Means For The Altcoin Market Ethereum’s performance holds broader implications for the altcoin market. As a leading altcoin in cryptocurrency, its movements often set the tone for altcoin trends. According to the CryptoQuant analyst, a strong Ethereum rally supported by consistent net outflows can ignite an “altcoin season,” where altcoins experience significant price gains following Ethereum’s upward trajectory. Related Reading: Ethereum Reaches $4,100 For The First Time In Over Three Years, Aiming For $5,000 Next During such periods, investor sentiment shifts positively across the broader crypto market, driving demand for smaller-cap assets. cryptoavails concluded: Ethereum’s strong performance is essential for the anticipated altcoin season. ETH’s movements will significantly influence the future performance of altcoins. Thus, Ethereum’s net flow data on spot exchanges is a critical indicator that investors should closely monitor. Featured image created with DALL-E, Chart from TradingView
As we approach the end of the year, Bitcoin (BTC) continues flying to new highs, setting bullish expectations for the rest of the cycle. Bitfinex’s latest reports suggest when BTC’s peak could come and how much climbing might be left for the flagship crypto. Related Reading: Bitcoin To Hit $180,000 If These Cycle Top Indicators Are Absent, Says VanEck’s Sigel Bitcoin’s ‘Unique’ Cycle In its latest Alpha Report, Bitfinex highlighted the crypto industry’s big strides in adoption and mainstream recognition this year, which have differentiated this cycle from previous ones. Notably, the launch and increasing institutional demand of Bitcoin and Ethereum spot exchange-traded funds (ETFs) have surpassed expectations and attracted a “new class of investors” to the crypto space. Per the report, this cycle has been “unique” as these new investors brought by ETFs and increasing confidence in the sector sent BTC’s price to a new ATH ahead of the Halving event, historically leading the flagship crypto to a new high after 5-7 months. The industry also saw a growing interest in diversifying national reserves with cryptocurrencies, with several jurisdictions worldwide considering implementing a Strategic Bitcoin Reserve after the flagship crypto’s recent performance. According to Bitfinex analysts, these factors have kept BTC’s corrections smaller than other cycles and will likely continue this trend for the rest of the bull run: In the current bull cycle, which began in mid to late 2023, Bitcoinʼs corrections have been smaller, particularly since the launch of Bitcoin ETFs in early 2024. With institutional and ETF demand providing consistent buying pressure, we expect this trend to continue, keeping future corrections limited and potentially shorter in duration. Moreover, the upcoming crypto-friendly US administration added to the growing bullish sentiment surrounding the industry, leading to the massive post-election rally. As a result, the crypto market has grown 130% year-to-date (YTD) to a market capitalization of $3.69 trillion, increasing nearly 70% this quarter. What’s Next For Bitcoin This Cycle? The report noted Bitcoin’s performance, highlighting its 573% surge from its 2022 low of $15,487. The flagship crypto has also seen an increase of 130% year-to-date (YTD), fueled by this year’s industry achievements. Earlier this month, Bitcoin broke past the $100,000 barrier for the first time, setting a new ATH closer to the $110,000 level on Monday. According to Bitfinex, the cryptocurrency still has several levels to climb in 2025, as historical data indicates that the market is mid-cycle. This data suggests BTC’s price will likely peak around Q3 and Q4 2025, as it tends to do approximately 450 days post-halving. Meanwhile, metrics like Market Value to Realized Value (MVRV), Net Unrealized Profit and Loss (NUPL), and the Bull-Bear market indicator signal that “we remain in the bull phase but far from euphoric peaks.” Bitfinex also explained that the Pi Cycle Top Indicator has historically been effective in timing cycle highs, forecasting the peaks with a three-day window. The previous cycle’s predictions indicate that Bitcoin could peak between mid-2025 and early-2026. Related Reading: PNUT Memecoin Drops 10% Following Peanut’s Owner Legal Warning To Binance If it follows the 2021 cycle pattern, BTC could see its price experience a 40% increase to $339,000 and peak around June or July 2025. Nonetheless, the report notes that the flagship crypto has been on a trend of diminishing returns over the cycles. Based on this, Bitcoin’s price might see a 15% to 20% increase to the $160,000-$200,000 range instead. However, if the cryptocurrency mirrors 2017’s cycle pattern, BTC’s rally could extend until January of 2026, peaking at $229,000 with similar diminishing returns. As of this writing, BTC is trading at $107,729, just 0.3% below its ATH. Featured Image from Unsplash.com, Chart from TradingView.com
Bitcoin has continued its upward trajectory as recent market trends highlight a shift in investor behaviour. According to data shared by CryptoQuant analyst Avocado Onchain, spot market demand has emerged as a significant driving force behind Bitcoin’s ongoing price increases. This trend indicates growing buying pressure from long-term investors, as speculative activity in the futures market appears to be cooling. Related Reading: Bitcoin’s Next Big Move? Key Metric Reveals When to Cash In Profits Bitcoin Spot Market Demand Gains Strength The analyst’s observations provide insights into Bitcoin’s ongoing bull cycle, which began in the first half of 2023. According to Avocado, initially, the futures market led the charge in pushing Bitcoin’s price upward, signalling a speculative phase fuelled by short-term traders. However, this momentum was interrupted earlier this year when both the futures and spot markets experienced reduced trading activity starting in March. Since October, market activity has returned, with trading volumes rising across both futures and spot markets, providing fresh support for Bitcoin’s rally. In his analysis, Avocado Onchain noted a key trend: while futures market activity has recently declined, demand in the spot market has been steadily increasing. Spot market activity refers to the actual purchase of Bitcoin on exchanges for immediate delivery, typically driven by investors with a long-term perspective. This stands in contrast to futures markets, where traders speculate on price movements using contracts that do not require immediate ownership of the asset. Spot Market Demand Takes the Lead as Bitcoin Continues Its Upward Momentum “While futures market activity has declined, spot market demand continues to increase. This suggests that speculative excess in the futures market is cooling, while buying pressure in the spot market is… pic.twitter.com/M4o4TsG02V — CryptoQuant.com (@cryptoquant_com) December 17, 2024 What This Means For BTC The analyst suggests that this shift indicates speculative excess in the futures market may be stabilizing. Historically, overheated futures markets have led to volatility, often triggering liquidations. However, the cooling of futures market activity, coupled with rising spot market demand, reflects a more sustainable form of buying pressure that can underpin Bitcoin’s long-term growth. The CryptoQuant analyst noted: Looking ahead, the futures market is likely to undergo cycles of overheating and liquidations, which will contribute to Bitcoin’s price growth. This price movement will, in turn, encourage further capital inflows into the spot market. Additionally, Avocado Onchain pointed to the 30-day exponential moving average (EMA) of Bitcoin’s funding rate, which shows “no signs of late-cycle overheating.” Related Reading: Bitcoin To Hit $180,000 If These Cycle Top Indicators Are Absent, Says VanEck’s Sigel The funding rate measures the cost of holding futures contracts and is often used as an indicator of market sentiment. Avocado mentioned that as BTC funding rate remains balanced, it suggests that BTC’s price movements are not being driven solely by leveraged positions, reducing the risk of sudden price reversals. Featured image created with DALL-E, Chart from TradingView
Crypto exchange Binance was hit with a cease and desist letter by Mark Longo, owner of the internet sensation Peanut the Squirrel, for alleged copyright infringement. PNUT, the popular memecoin inspired by the squirrel, saw a nearly 10% decrease following the news. Related Reading: Solana (SOL) Faces Headwinds: Can Bulls Revive Momentum? Internet Squirrel Becomes Memecoin Sensation On Sunday, Mark Longo, owner of Peanut the Squirrel, announced that his legal team had initiated legal action against crypto exchange Binance. In an X post, Longo, also known as “Peanuts Dad,” accused the exchange of using his intellectual property without authorization. The rescued squirrel became an internet sensation after Longo’s online videos became viral, amassing over half a million followers on Instagram. However, Peanut was seized from Longo’s home alongside a rescued raccoon named Fred. Both animals were euthanized to be tested for rabies, as there are not any approved antemortem rabies testing methods for animals by the Centers for Disease Control and Prevention. Following the news, the public condemned Peanut’s death, with several lawmakers criticizing authorities’ actions. It also sparked a wave of Peanut-inspired memecoins, which resulted in the creation of Solana-based memecoin PNUT. Amid the controversy, the token quickly grew in popularity, hitting a $120 million market capitalization in less than a week. Binance announced the listing of the memecoin on November 11, opening spot trading that same day. After the news, PNUT’s price went on a massive rally, climbing to the top 10 memecoins by market cap. The token achieved the $1 billion milestone in less than a month, reaching a $2.27 billion market cap before retracing. For the past month, PNUT has held above the $1 billion mark, with the price hovering between the $1.80-$1.00 price range. Crypto Exchanges Hit With Cease And Desist Letter According to the letter shared by the animal rights activist, Binance allegedly infringed “the intellectual property rights owned by Mr. Longo.” His legal team argues that the exchange’s use of the copyrighted photograph of Peanut the Squirrel wearing a cowboy hat and the “identical” trademark of “PEANUT THE SQUIRREL and PNUT” in the listed memecoin infringes their client’s “various copyrights and trademarks.” The letter demanded that Binance respond to the letter by December 31st, 2024, to verify the exchange received the letter and “have ceased all infringing activity.” Moreover, Longo revealed in his post that this was the first of multiple cease and desist letters to be issued. PNUT faced a 10.2% dip after the news, falling from the $1.17 level to the $1.05 support in 24 hours. The retrace drove the token near its lowest levels in over a month, worrying investors about the memecoin’s performance. Related Reading: Ex-Hedge Fund Guru Bets Big On Dogecoin As ‘Core Crypto Bet’ It’s worth noting that Longo has previously stated his discontent with the PNUT memecoin, accusing the crypto community of profiting from his late pet. As a protest, the animal rights activist launched a memecoin named Justice for Pnut and Fred (JUSTICE), which faced controversy over insider trading allegations. Longo also promoted another memecoin, Justice for Peanut (JFP), in his warning post, which saw a 159% increase after the publication before losing all its recent gains. At the time of writing, PNUT is trading at $1.10, a 5.1% drop in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Korea Exchange’s chief recently suggested that South Korea must review its crypto approach and institutionalize digital assets soon to compete against other nations. The call for change comes amid the country’s political turmoil, which has halted all related regulations until 2025. Related Reading: Small-Scale Bitcoin Wallets Are Booming: Addresses With Less Than 1 BTC Surges […]
Bitcoin recent price momentum which led to a renewal of its all-time high (ATH) appears to have reignited interest in key metrics used to time market entries and exits. Among these, the Stock-to-Flow (S2F) reversion metric has been highlighted by a CryptoQuant analyst known as Darkfost, who shared insights on its current implications for Bitcoin investors. The metric, a measure of Bitcoin’s price deviations from its expected value based on the S2F model, has become an important tool for many traders assessing market sentiment and identifying potential profit-taking windows. Related Reading: Bitcoin Confidence Grows As Binance Data Highlights Surprising Market Trends When Should Cash In Your Bitcoin Profits? Darkfost’s analysis points to September 11 as a significant date, when the S2F reversion metric dropped below 1, signaling a potential buy opportunity as Bitcoin traded at $57,000. Now, the analyst emphasizes a different critical threshold—a value above 2.5—historically indicating a favorable time to secure moderate profits. Should the metric reach a value above 3, it often signals market overheating, marking an opportune moment for larger profit-taking strategies. The S2F reversion metric offers a structured approach to assessing Bitcoin’s price cycles. Darkfost suggests a two-step profit strategy: investors should consider securing smaller gains when the metric hits 2.5 and proceed to larger profit-taking if it surpasses 3. Darfost particularly wrote: A prudent strategy when using this indicator is to take moderate profits once the S2F reversion ratio hits 2.5 and to secure larger profits when the ratio exceeds 3, thereby balancing risk and reward effectively. BTC Market Performance Regardless of the suggested indicator by Darkfost on when to take profit, Bitcoin appears not to be slowing down in its upward momentum. So far, BTC has created a new ATH after trading as high as $106,352 in the early hours of Monday. Although at the time of writing, the asset has seen a slight rebound currently trading at a a price of $105,942, however, BTC is still up by over 3% in the past day more than 10% in the past two weeks. Unsurprisingly, along with the rising price, BTC’s market capitalization has also seen a significant surge in its valuation now sitting at roughly over $2 trillion as of today. Meanwhile, despite this positive momentum, BTC’s daily trading volume has seen quite an opposite trend. Related Reading: National Bitcoin Reserve Initiative: MP Satoshi Hamada Urges Japan To Take Action Particularly, this metric instead of seeing a rise amid the new ATH of BTC, has remain stable and lower than last week’s daily trading volume. At the time of writing, BTC’s trading volume sits at $97.4 billion, a significant decline from the over $140 billion volume valuation seen last week on December 10. Featured image created with DALL-E, Chart from TradingView
SUI momentum continues after recording a new all-time high (ATH) on Friday morning. The cryptocurrency surged 4.5% to near the $5 barrier for the second time this week, fueling investors’ optimism about the token’s future price action. Related Reading: Ethereum: Analysts Eye $4,100 Target As ETH Reclaims Key Support Level SUI Nears $5 After New ATH SUI has been one of the leading cryptocurrencies this bull run, rising over 521% year-to-date (YTD) and nearly 182% since Q4 started. The token also outperformed the market throughout the Q2 and Q3 retraces, registering massive gains while most altcoins struggled. As the crypto market started to gain steam in preparations for the US elections, SUI saw a brief consolidation period after surpassing its March ATH. The token hovered between the $1.7-$2.3 price range before continuing the “price discovery” mode in November. The post-US election pump propelled the cryptocurrency’s price past the $3 barrier and near the $4 mark before retracing. Nonetheless, SUI’s momentum resumed on December 5 when it hit the $4.5 mark, fueled by Bitcoin’s first-ever surge above $100,000. The token’s rally continued this week, with SUI registering a 14% increase in the last seven days, which led to its latest $4.92 milestone on Friday morning. SUI’s remarkable performance also drove the token to the top 15 cryptocurrencies by market capitalization after flipping Polkadot (DOT). SUI’s Price To Peak In June? Amid SUI’s performance, several analysts noted that the token, often called “Solana’s “killer,” seems to be repeating SOL’s 2021 path. Market watcher Mags compared the two charts, suggesting investors won’t be ready for SUI’s upcoming movements. During the 2020-2021 cycle, Solana saw a massive rally that drove its price to its previous ATH. Its price action saw SOL gain steam at the end of 2020 and surge to its first major high of the year in May 2021. Then, Solana consolidated for a few months before resuming its run, peaking at $259 in late November 2021. According to Ali Martinez, SUI’s performance earlier this year resembled Solana’s initial climb last cycle, jumping to its $2.3 high before consolidating for a few months. Now that it has broken past its March ATH, SUI continues to move similarly to SOL, which could suggest that the token is poised for a massive surge soon. If it continues this pattern, the cryptocurrency could hit the $5 mark in the coming days after a brief consolidation in the $4.5-$4.8 price range. Trader Crypto Rand highlighted that SUI is in “full bullish momentum,” also forecasting it will hit the $5 mark soon. Related Reading: Analyst Sounds The Alarm As Solana (SOL) Retests $210, Rebound Or Retrace Next? Another pseudonym crypto trader predicted that the token could be near the $8 barrier by early 2025 and hit the $16 mark by Q2, following SOL’s path. Based on the chart, SUI could see its rally extended until June 2025, when it would hit its peak around the $40 mark. As of this writing, SUI is trading at $4.79, a 50% surge in the monthly timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Ethereum (ETH) has seen a significant 4.7% recovery in the last 24 hours, reclaiming a crucial support zone. This performance has fueled a bullish sentiment among some market watchers, who consider the cryptocurrency to break above a key resistance level in the coming days. Related Reading: Bitcoin Sees First Close Above $100,000, But Is A Big Correction Coming? Ethereum Reclaims Key Support Nearly a week ago, Ethereum jumped above $4,000 for the first time in nine months, nearing its march-high and the long-awaited $4,100 resistance level. However, the cryptocurrency’s rally was momentarily paused after the crypto market saw a significant pullback. Earlier this week, ETH retraced nearly 10%, dipping below the $3,500 mark as Bitcoin retraced to $95,000. After the retrace, the second-largest crypto by market capitalization has steadily climbed back, recovering the $3,800 support zone on Wednesday afternoon. ETH’s price then rose another 2% in the early hours of Thursday to trade above the $3,900 level again. As Ethereum reclaimed this key zone, Crypto analyst Carl Runefelt noted that the cryptocurrency was trading back above its ascending support trendline, which it had lost during the market correction. Additionally, the King of Altcoins was retesting a six-day downtrend line in the 4-hour chart, which would target a surge toward $4,000 after a successful breakout from the $3,940 mark. Ethereum broke above this resistance in the following hours, surging to a daily high of $3,985 before retracing to $3,945. Per the analyst, holding above this level could propel ETH’s price to $4,100 in the coming days. ETH To $5,000 Soon? According to some analysts, despite reclaiming the $3,900 zone, Ethereum still needs to turn another multi-year resistance into support successfully. Analyst Alex Clay recently pointed out that ETH has been retesting the $9,350 level since 2021, unsuccessfully turning it into support over the past few years. Ethereum has faced rejection at this resistance level on four different occasions. However, when ETH broke and held this level, it rallied toward its all-time high (ATH) of $4,878 around three years ago. Crypto analyst Jelle suggested that Ethereum is preparing for massive moves as it recently broke out of a multi-year pennant. ETH-based Exchange-traded funds (ETFs) have seen a massive surge since the post-election rally. As Farside Investors data shows, ETH ETFs have seen over $500 million in inflows this week and over $1.3 billion since this month started. This signals increased demand from institutional players, adding to the cryptocurrency’s momentum. Related Reading: Analyst Sounds The Alarm As Solana (SOL) Retests $210, Rebound Or Retrace Next? Moreover, the Donald Trump-backed DeFi project World Liberty Financial Initiative (WLFI) acquired around $10 million in ETH yesterday. Lookonchain said the WLFI wallet bought 2,631 ETH at $3,801 per token. To Jelle, this “looks like ETH season just got the ‘go ahead’ nod from institutions.” If Ethereum reclaims the $3,950 resistance into support, there will be “very little standing in the way of new all-time highs from here,” the analyst added. He forecasted that Ethereum could hit $5,000 after breaking out and that 2025 will be a “comeback year for ETH.” As of this writing, ETH is trading at $3,951, a 4.7% surge in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Bitcoin has shown a significant recovery, reclaiming the $100,000 milestone yesterday. It trades at $101,805, marking a 1.4% increase over the past 24 hours. Amid this price performance, analysts have closely examined various metrics to gauge potential market movements, including identifying optimal cash-out moments. Meanwhile, recent data reveals intriguing patterns that could guide investor strategies. When Should You Cash Out Your Bitcoin? One key insight shared by a CryptoQuant analyst, Onchain Edge, highlights a critical signal for when investors should consider reducing their Bitcoin holdings. Other metrics suggest a resurgence in buyer activity, reinforcing optimism in Bitcoin’s ongoing rally. Onchain Edge emphasizes the importance of the BTC supply loss percentage as a marker for peak market phases. He notes that when this metric drops below 4%, it could signify the culmination of a bull market and the beginning of an overheated market phase. Currently, the current supply loss percentage stands at 8.14%, providing room for further price growth before a potential peak. The analyst warns, however, that failing to act at the right time during such peak phases could lead to substantial losses in a subsequent bear market. Elaborating on his analysis, Onchain Edge encourages investors to consider dollar-cost averaging (DCA) out of their positions once the supply loss percentage breaches the 4% threshold. It is worth noting that this strategy by Edge could help mitigate the risk of holding through the transition into a bear market. Historically, peak bull run phases are characterized by significant profits among market participants, often followed by sharp corrections. Investors can protect their gains by exiting strategically while preparing for lower entry points during future market downturns. BTC Buyer Activity Resurges Meanwhile, in a separate analysis, another CryptoQuant analyst known as Crazzyblockk sheds light on the behavior of takers on Binance, one of the largest cryptocurrency exchanges. Data from the Taker Buy/Sell Ratio shows a shift toward aggressive buying activity. This metric, which compares the volume of buy orders filled by takers to sell orders, had experienced a period of negative monthly values, indicating a preference for selling among market participants. However, the ratio has recently turned positive, signifying renewed interest from buyers. This trend suggests reduced selling pressure and growing optimism among traders about Bitcoin’s potential price increase. According to Crazzyblockk, sustaining this momentum is critical for maintaining the bullish trajectory, particularly as Bitcoin consolidates around the psychologically significant $100,000 level. Featured image created with DALL-E, Chart from TradingView
As the market continues its massive rally, Ukrainian lawmakers are preparing to legalize crypto soon officially. Local reports revealed that the parliament is working on a draft law but is not considering tax exemptions for digital assets. Related Reading: Coinbase CEO Slams Anti-Crypto SEC Commissioner, Urges Senate To Vote Her Out Ukraine Prepares To Legalize […]
The US Department of Justice has announced the sentencing of Michael Joseph McElhiney, a Spokane resident, to over three years in federal prison for operating a fraudulent crypto investment scheme. The fraud, which spanned over a year, defrauded multiple investors of more than $350,000. The sentencing, handed down by United States District Judge Thomas O. […]
Hong Kong seems to be intensifying its efforts to establish itself as a global cryptocurrency hub. In a recent announcement, it pledged to “streamline” the licensing process for crypto trading platforms. The announcement comes as the region faces mounting competition from other jurisdictions racing for a share of the digital asset industry. The move is […]
Solana (SOL) has seen its rally slow down in the last few days, dropping 23% from its new all-time high (ATH) and over 8% in the past day. Some investors worry about the Altcoin’s short-term performance as the crypto market pulls back. Related Reading: Bitcoin Sees First Close Above $100,000, But Is A Big Correction Coming? Solana Drops To Lowest Level In A Month Solana has been one of the leading cryptocurrencies this cycle, outperforming most of the market and stealing the headlines. Unlike most altcoins, the cryptocurrency outperformed during the Q2 and Q3 retraces, holding above pre-bull run levels. As Q4 started, Solana continued to hover within the $110-$180 price range, breaking above this range after the market’s post-election pump. SOL’s momentum propelled the token past its yearly high and successfully reclaimed the $200 barrier. The token continued to climb higher until its new ATH of $263 on November 23. Since then, Solana hovered between the $245-$220 price range, fueling investors’ optimism about the altcoin’s next “price discovery” move. Nonetheless, SOL’s price has taken a blow in the past day alongside Bitcoin and the rest of the crypto market. Solana saw an 8.7% correction in the last 24 hours, falling to the $210 support level before dropping below it. The cryptocurrency is now retesting the key $200-$210 zone as support for the first time since breaking past it, falling below the $205 level on Tuesday morning. Crypto analyst Altcoin Sherpa shared a possible bearish outlook for SOL’s short-term performance based on the ongoing price retest. Per the post, “SOL weakness has been pretty obvious, and it’s being reflected in the sol shitcoin price action as well.” The analysts explained that the current price action looks seemingly underwhelming, suggesting that holding the $200-$210 region is crucial. Failing to hold this zone would likely send the price to the pre-election resistance level of $180, which has not been tested as support since breaking above it over a month ago. SOL Eyes Higher Targets Similarly, Crypto Jack forecasted a potential fall to the $180-$160 range if SOL fails its retest of the $200 mark as support. However, he considers the over 10% drop a “buy the dip” opportunity for investors. According to his potential play for Solana, the cryptocurrency would bounce to its ATH levels and attempt to break past them. Other market watchers pointed out that SOL is currently retesting the weekly and monthly timeframe resistance as support, which could see Solana go higher “as long as it holds.” Crypto analyst Jelle reaffirmed his $600 target for the cryptocurrency, noting that it “performed incredibly during the first year of the cycle” and will “be a winner again in the coming months.” Related Reading: Cardano Follows 2020 Bullish Pattern – Top Analyst Plans To Take Profits Between $4 And $6 Meanwhile, Bitwise’s latest report predicted that SOL could rally over 200% in 2025. The asset manager’s CIO, Matt Hougan, and Head of Research, Ryan Rasmussen, consider that the altcoin’s momentum “is just beginning to build,” predicting it will hit $750 next year. At the time of writing, Solana is trading at $204, an 8.5% and 3.1% decline in the daily and monthly timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, seems to be drawing attention as analysts observe market metrics that indicates the possible next move for ETH. Recent data from CryptoQuant has highlighted patterns in accumulation and exchange-traded fund (ETF) inflows, providing a detailed look at Ethereum’s potential trajectory as it underperforms relative to Bitcoin in the current cycle. Related Reading: Ethereum Price Faces Pressure: Bulls Tested After Setback Analyzing Trends in Accumulation and ETF Inflows In a series of posts shared on social media platform X, CryptoQuant analysts dissected Ethereum’s key metrics. One of the standout observations was Ethereum’s balance in accumulation addresses. These addresses now hold approximately 19.5 million ETH, valued at around $78 billion. For comparison, Bitcoin accumulation addresses hold about 2.8 million BTC, worth $280 billion. While the dollar value of Bitcoin held is four times larger than Ethereum, this aligns with their relative market capitalizations, offering insights into investor behaviour. Another critical metric spotlighted was the steady inflow into Ethereum-focused ETFs over the past months. Notable spikes were recorded on several key dates, including $1.1 billion on November 11 and $839 million on December 4, 2024. According to the CryptoQuant analysts, these consistent inflows are a strong indicator of institutional buying interest, reinforcing Ethereum’s growing appeal among large-scale investors. The Ethereum ETF has seen steady inflows in recent months. Key spikes on: Nov 11, 2024: $1,100M Nov 21, 2024: $754M Nov 25, 2024: $629M Nov 27, 2024: $883M Dec 4, 2024: $839M These inflows reflect strong buying pressure. pic.twitter.com/OIwWNmRPYB — CryptoQuant.com (@cryptoquant_com) December 10, 2024 Despite the strong ETF demand, Ethereum’s price movements have been less dramatic compared to Bitcoin’s performance in this cycle. Historically, Ethereum’s price peaks have trailed Bitcoin’s, as seen during the 2021 bull run. At that time, Bitcoin hit an all-time high (ATH) in March with a 480% gain, while Ethereum peaked few months after with roughly 1,114% increase. However, in the current cycle, Ethereum appears to be underperforming, signaling a shift in market dynamics. Taker Volume and Potential Growth Furthermore, a significant area of concern the analysts mentioned is the Ethereum’s taker volume, which reflects market sentiment by comparing aggressive buying and selling activity. CryptoQuant reported that Ethereum’s taker-seller volume has hit a record low of -400 million. This aggressive selling activity is reminiscent of patterns observed before its ATH in 2021. While the current selling pressure may seem bearish, it could also signal a market nearing a critical pivot point. Ethereum Taker Volume is at its lowest level on record. Ethereum’s price weakness is due to high taker-seller volume, now at a record low of -400 million, indicating aggressive selling. A similar pattern occurred before Ethereum’s peak in May 2021. Despite this, there may still… pic.twitter.com/OmRYvAzjxI — CryptoQuant.com (@cryptoquant_com) December 10, 2024 The analysts emphasized that Ethereum’s underperformance in this cycle does not preclude the possibility of significant growth. Related Reading: Ethereum Price Breakout: Charting The Uncertain Part Of ETH To $18,000 The interplay between accumulation patterns, ETF inflows, and taker volume suggests that Ethereum could still have room for upward momentum. Featured image created with DALL-E, Chart from TradingView
Bitcoin (BTC) closed the week above the $100,000 mark for the first time in history, concluding the crypto’s massive week with another milestone. However, a market watcher has warned investors that historical patterns could soon lead the flagship crypto to a big correction. Related Reading: XRP Slides After Failing To Reclaim $2.9, What’s Next For Bulls? Bitcoin First Weekly Close Above $100,000 Bitcoin hit the $100,000 milestone nearly a week ago, passing the psychological barrier for the first time. After its massive feat, the largest crypto by market capitalization faced its largest retrace since Trump’s victory in the US presidential elections. BTC briefly dropped around 13% to the $90,000 mark in a candle that resembled its performance when it first hit the $10,000 barrier. Since then, the cryptocurrency has hovered between the $97,000-$101,000 prince range, facing some resistance to breaking past the range’s upper zone. As reported by NewsBTC, crypto analyst Jelle noted that BTC could follow the same path as its post-$10,000 milestone trajectory, turning the newly crossed level into support after three days, like it did in November 2017. After hovering between its new range for four days, Bitcoin registered its first daily close above $100,000 on Sunday. This performance also marked its first weekly close above this barrier, displaying a similar weekly performance to the $10,000 candle. Crypto analyst Rekt Capital highlighted that BTC’s daily close above this mark and Monday’s 2.5% pullback is “technically a retest” of this level. However, the ongoing retest is very volatile, and it has been simultaneously attempting to turn the “final major daily resistance,” around the $98,000 zone, into support for the past two days. The analyst added, “a volatile retest like this makes sense, especially weekly.” He explained that the $98,000 level was broken as resistance on the weekly chart after yesterday’s close, meaning that “this week is all about trying to reclaim this level as new support.” Will The Next Few Weeks Be ‘Problematic’ For BTC? Despite breaking past the crucial barrier, Rekt Capital warned investors of BTC’s upcoming week of its post-halving “Parabolic Upside Phase.” The analyst previously explained that Bitcoin enters a parabolic period that lasts around 300 days each cycle after every Halving event. Historically, BTC’s price registers the first major pullback a month after entering price discovery mode. According to the analyst, the first “Price Discovery Correction” historically begins between Weeks 6 and 8 of each parabolic phase, seeing at least 25% retraces. Rekt Capital pointed out that today starts the sixth week of this post-halving upside phase, emphasizing that BTC is the timeframe where its price has retraced significantly. Based on this, Bitcoin’s price could nosedive between 25% and 40% in the next few weeks, like in 2017. Related Reading: Bitcoin Is ‘Highly Likely’ In A Supercycle: Expert Explains Why The analyst warned investors that the current retest of the $98,000 level is key, as failing to hold it could kickstart the first major correction: As a result, over the next 3 weeks or so, I am going to be increasingly cautious about retest attempts, and given BTC’s history at this point in the cycle, I wouldn’t be surprised to see key levels get invalidated. Nonetheless, he stated that “the Second Price Discovery Uptrend will take place after the Price Discovery Correction,” which could propel BTC to a new ATH. At the time of writing, Bitcoin is trading at $98,073, a 2% drop in the last 24 hours. Featured Image from Unsplash.com, Chart from TradingView.com
So far, the Bitcoin market continues to demonstrate resilience as it maintains its price above the $90,000 price market despite various factors influencing its price movements. Amid this, a CryptoQuant analyst, aytekin466, recently shared insights into whether the cryptocurrency could face another significant price correction. Related Reading: Bitcoin Is ‘Highly Likely’ In A Supercycle: Expert Explains Why Are Major Corrections a Thing of the Past? aytekin disclosed that with Bitcoin experiencing a maximum decline of 30% in its current cycle — notably during the “carry trade shock” in August — this marks a milder drawdown than previous cycles. According to the analyst, the increasing presence of ETFs has contributed to stabilizing the market by mitigating drastic shakeouts. However, the dynamics surrounding BTC investment remain a careful balancing act. The analyst noted: Waiting for the next big correction to enter the market or add fresh capital might result in being late to the rally. On the other hand, being overly aggressive while the market is surging could be risky. Mentioning that it is better to understand where the market stance is as of now, aytekin highlighted that current metrics, such as a positive Coinbase premium and the cooling off of the Spent Output Profit Ratio (SOPR), suggest a “healthy consolidation phase.” Moreover, funding rates have eased following recent price fluctuations, while miners show no urgency to liquidate their holdings. Stablecoin flows to spot exchanges are also at their highest levels this year, signaling active market participation. aytekin wrote: In conclusion, a correction could happen at any time without a specific reason, but the current situation doesn’t indicate a shift in momentum. Further Growth In Bitcoin Price Expected? Another CryptoQuant analyst, Darkfost, highlighted positive market signals from stablecoin activity and BTC netflows. The Exchange Stablecoin Ratio — comparing Bitcoin reserves on exchanges to stablecoin reserves — is in decline. This trend indicates strong buying pressure as stablecoins for Bitcoin purchases increase while Bitcoin exchange reserves dwindle. In parallel, weekly Bitcoin netflows reveal consistent withdrawals from exchanges, suggesting a sentiment shift toward mid- to long-term holding among investors. These metrics indicate a favorable market environment with strong demand and investor confidence. Related Reading: Bitcoin’s Market at a Crossroads: Are Long-Term Holders Signalling a Correction or a Rally? Notably, the declining exchange stablecoin ratio aligns with a reduction in immediate selling pressure. At the same time, the accumulation of Bitcoin signals that market participants view the current environment as conducive to long-term growth. Darkfost wrote: These combined metrics, lower exchange stablecoin ratios and decreasing Bitcoin reserves, indicate a positive market environment. They highlight that demand remains strong and that investors are demonstrating confidence in Bitcoin’s potential Featured image created with DALL-E, Chart from TradingView
Ethereum, the second-largest crypto by market capitalization, has recently demonstrated strong bullish momentum, breaching above $4,000. It is worth noting that its price rally has been accompanied by a significant spike in its funding rates, a critical metric reflecting sentiment in the futures market. The metric, analyzed by CryptoQuant analyst ShayanBTC, has reached levels not seen since January 2024. This surge in funding rates suggests a growing optimism among traders, with many anticipating the possibility of Ethereum reaching new all-time highs. Related Reading: Large Ethereum Transactions Grow As ETH Breaks Yearly Highs But Is A Correction On The Horizon? Despite this enthusiasm, the market’s current state raises questions about sustainability. Historically, such spikes in funding rates have often preceded short-term corrections, stabilizing the market. According to Shayan, the current situation mirrors January 2024, when Ethereum saw an 88% rally following similar market conditions. The analyst suggests that while the current rally may pave the way for further gains, a pullback could be essential for healthier long-term growth. Funding rates serve as a barometer for market sentiment, particularly in the futures market. A positive funding rate indicates a preference for long positions, with traders expecting higher prices. Ethereum Funding Rates Hit Multi-Month High “Funding rates are at levels last seen in January 2024, when Ethereum rallied by 88%. This reflects increased long-position interest as optimism grows. Similar to January, this sharp increase suggests the likelihood of a pullback.” –… pic.twitter.com/euKGhIqNKO — CryptoQuant.com (@cryptoquant_com) December 9, 2024 As Ethereum’s funding rates hit multi-month highs, this trend signals a surge in bullish sentiment. However, history shows such sharp increases can create short-term market imbalances, leading to corrections. Shayan noted: While Ethereum’s rally is underpinned by bullish sentiment, the spike in funding rates signals the need for a short-term correction, paving the way for healthier and more sustainable price growth. Ethereum Market Performance Ethereum remains below the $4,000 mark after falling below this level last week. Currently, ETH is trading at $3,819, reflecting a 4.9% decline in the past 24 hours. Despite the recent drop, the asset has gained nearly 30% over the past month. However, ETH’s latest dip further distances it from its all-time high of $4,878 in 2021, leaving it 20.5% below that peak. Related Reading: Ethereum Active Addresses Surge By 36% In Support Of Bullish Price Action – Details Nevertheless, market analysts maintain a bullish outlook on Ethereum, with many projecting potential new highs for the asset shortly. $ETH Hello everyone, I felt the need to share a detailed #ETHUSDT analysis with you. I hope you find it helpful. First and foremost, despite the recent rise in $BTC, Ethereum and altcoins have not yet responded as expected. Therefore, I encourage those who are worried to remain… pic.twitter.com/XsB2HroNnG — Talha Batuhan Ayna (@TBatuhanAyna) December 9, 2024 Featured image created with DALL-E, Chart from TradingView
According to the latest report by CoinShares, crypto asset investment products have achieved a historic milestone, with weekly inflows totaling $3.85 billion, surpassing previous records set earlier this year. CoinShares highlighted a surge in investor interest, propelling total year-to-date (YTD) inflows to $41 billion and assets under management (AuM) to $165 billion—a contrast to prior […]
Amid the excitement and expectations for Donald Trump’s new industry-friendly administration, the crypto community and key figures continue to speculate about the coming changes in the regulatory space. Coinbase’s CEO recently urged the US Senate Banking Committee to vote wisely on the re-nomination of an anti-industry Securities and Exchange Commission (SEC) commissioner, suggesting that the […]
After surpassing its $100,000 milestone, Bitcoin (BTC) recorded its largest retrace in the past month before recovering. Amid the flagship crypto’s performance, some analysts have suggested the levels to watch and the next stops for BTC’s rally. Related Reading: Ethereum To Pull A BTC 2021-Like Rally? Analyst Shares Massive Prediction Bitcoin Rally To Continue Above $100,000 On Thursday, Bitcoin hit its latest all-time high (ATH) of $103,600 in an 8% daily jump. The largest cryptocurrency by market capitalization broke out of a one-month bullish pennant and smashed past the $100,000 barrier for the first time in history. After the impressive surge, BTC retraced to the $98,000 mark before briefly plummeting to the $90,000 support zone. This 13% correction marks the largest drip for the flagship cryptocurrency since the post-election rally started a month ago and triggered around $1 billion in liquidations, its largest since August. Nonetheless, Bitcoin quickly recovered the $97,000-$98,000 price range, followed by a retest of the previous ATH levels around $99,000 on Friday morning. Renowned crypto analyst Ali Martinez noted that BTC’s rally seemingly depends on a key support level. Martinez revealed the most significant support zone for Bitcoin was the $96,870 mark, where over 1.45 million addresses bought 1.42 million BTC. The analyst explained, “As long as this demand zone holds, there is a good probability that BTC will continue marching higher.” Moreover, he highlighted that the local Bitcoin top is not in yet, as these are “usually reached around the Short-Term Holder Cost Basis +1 standard deviation.” Per the analyst’s chart, this level stood at $112,926 at the time of the report, suggesting that BTC could jump another 13% before seeing the first major retrace. Will BTC Repeat Its 2017 Move? Crypto analyst Jelle pointed out that Bitcoin is still “following the Q4 2023 fractal closely” despite the dip. He suggested that now that the flagship crypto “took out the liquidity on both sides,” it would start pushing back to the $100,000 milestone. Jelle suggested that BTC would range until Christmas, when he forecasts the “true breakout” will happen if it continues following last year’s steps. Additionally, he noted that yesterday’s $100,000 candle resembles BTC’s candle when it first surpassed the $10,000 mark. In November 2017, Bitcoin rallied to $10,000 for the first time, hitting the $11,000 range before plummeting to $8,500. The following day, the largest crypto saw its price recover from the correction and retest the $10,000 barrier, finally turning it into support on the third day. After that, Bitcoin rallied around 90% in the next few weeks to the $19,000 2017 ATH. Based on this, the analyst suggests that the recent price volatility is “totally normal” and will push higher soon if it repeats history. Related Reading: Tron (TRX) Leads The Crypto Market With 100% Rally To New ATH, $0.5 Next? After the recovery, BTC successfully retested the bullish pennant, setting the stage for a six-figure price “once and for all,” Jelle stated, with the liftoff targeting the $130,000 level. As of this writing, the flagship crypto trades at $101,050, a 4.7% increase on the weekly timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
The Polish police detained a Russian citizen linked to the now-collapsed WEX exchange for alleged fraud and money laundering. US authorities solicited his extradition for his crypto-related crimes and currently await the completion of the extradition process. Related Reading: ‘Most Horrible’ Crypto Launch? On-Chain Investigator Accuses ‘Hawk Tuah’ Girl Of Memecoin Scam WEX’s ‘Crypto King’ […]
After months of struggling below the $4,000 price mark, Ethereum finally breached this notable resistance level on December 6, with a current trading price of $4,003, increasing by 2.7% in the past day. However, while this milestone has generated optimism among investors, market metrics indicate potential risks of profit-taking and corrections. Related Reading: Ethereum Crosses $3,800: Is The ‘God Candle’ Nearing? Analysts Weigh In Another Major Correction Incoming? A CryptoQuant analyst known as ShayanBTC has recently shared insights into Ethereum’s futures market behavior, highlighting a key indicator that suggests caution might be warranted. According to the analyst, Ethereum’s Taker Buy/Sell Ratio, a critical metric for analyzing market sentiment, has shown a substantial increase in sell-side activity. This development aligns with Ethereum’s approach to the $4,000 resistance level. The metric, which measures the aggressiveness of buyers versus sellers in futures markets, reveals that sellers increasingly dominate trades as the price edges upward. Shayan disclosed that Ethereum’s futures market participants appear to be locking in profits or preparing for a potential price correction. The Taker Buy/Sell Ratio has reached its lowest point in several months, indicating that market participants are leaning toward a risk-off stance. This trend suggests that the aggressive futures market sell orders could slow Ethereum’s upward momentum, paving the way for a potential pullback or consolidation phase. The analyst particularly wrote: The drop in the Taker Buy Sell Ratio implies a possible slowdown in upward price movement as more market participants take a risk-off approach. This aligns with anticipating a price pullback or a correction phase, making it crucial for traders to monitor the futures market for further developments. What Next For Ethereum? At the time of writing, Ethereum still hovers above $$4,000, up by 3.1% in the past day. This price increase has boosted ETH’s market cap above $482 billion as of today and its daily trading volume to roughly $56.7 billion. Notably, the drop in the Taker Buy/Sell Ratio highlighted by Shayan reflects an overall cautious sentiment among futures market participants, often a precursor to heightened market volatility. Related Reading: Ethereum To Pull A BTC 2021-Like Rally? Analyst Shares Massive Prediction While this does not necessarily signal the end of Ethereum’s rally, it highlights the importance of closely monitoring market developments. Should the selling pressure intensify, Ethereum may experience a price correction, offering opportunities for new entrants or long-term holders to accumulate at lower levels. Meanwhile, from a technical perspective, ETH might be on the verge of a major rally as it recently formed a golden cross (50DMA and 200DMA) on its price chart. $ETH goldencross (50DMA and 200DMA) has occured! Last time this happened, #Ethereum was still in consolidation stages of the bearmarket but it still went +129% In the 2021 bullmarket, the last goldencross took #ETH +2,323% pic.twitter.com/Wd7GGMc7O4 — venturefounder (@venturefounder) December 6, 2024 Featured image created with DALL-E, Chart from TradingView
The role of Bitcoin long-term holders (LTHs) has again come under the microscope of analysts as the asset currently faces a 4.5% correction from its all-time high (ATH) above $100,000 created on Thursday. These holders, defined as those who retain their Bitcoin for over 155 days, are known to influence market movements through their accumulation and distribution behaviors significantly. A recent analysis by CryptoQuant analyst Datascope has highlighted key trends in LTH activity that could signal the next phase for Bitcoin. Related Reading: Hut 8 Unveils $750 Million Initiative To Establish Strategic Bitcoin Reserve Key Trends And Historical Context Datascope’s insights highlight the importance of the LTH accumulation/distribution ratio as an on-chain metric. This ratio reflects whether LTHs are amassing Bitcoin, indicative of market bottoms, or liquidating holdings during price peaks, often signaling corrections. Historical patterns from 2013 and 2017 saw LTHs engaging in substantial selling at market highs, while periods like 2019 and 2020 were marked by intense accumulation, paving the way for bull markets. According to datascope’s analysis, the peaks of 2013 and 2017, which were characterized by heightened selling activity from LTHs, correlated with significant price corrections. These corrections, fueled by profit-taking, marked the culmination of bullish cycles. Conversely, during the lows of 2019 and 2020, LTHs exhibited strong accumulation tendencies, which signalled confidence in Bitcoin’s long-term potential and laying the groundwork for subsequent price surges. Now in 2024, datascope pointed out that the LTH metric is once again providing critical insights into market conditions. Recent data reveals increased selling activity among LTHs, a behaviour observed during periods of market overheating or resistance at current price levels. While this trend could hint at an impending correction, it also raises the possibility of the market transitioning into a new accumulation phase. Echoing this, a recent report from CryptoQuant reveals there has been sustained buying pressure from US investors. Bitcoin passes $100k as institutional demand drives the market. The Coinbase Premium Index highlights sustained buying pressure from U.S. investors. pic.twitter.com/eZvKFCmVxs — CryptoQuant.com (@cryptoquant_com) December 5, 2024 Current Outlook On Bitcoin Bitcoin has continued to see decline in its price following the $103,679 ATH recorded yesterday. At the time of writing, BTC has dropped 2.2% in the past 24 hours with a current trading price of $99,208. Regardless of this, the asset appears to still be in an uptrend. over the past month, Bitcoin is still up by roughly 33.6% with a current market capitalisation of $1.965 trillion. Related Reading: Is Bitcoin’s $100K Just the Beginning? Key Insights from Supply Distribution Data datascope commenting on Bitcoin’s current market outlook wrote: The market is at a crossroads, potentially entering a new upward cycle or consolidating before a deeper correction. With Bitcoin in an “overheated” zone, investors should exercise caution and evaluate profit-taking opportunities. Featured image created with DALL-E, Chart from TradingView
As Bitcoin finally soars above the long-awaited $100,000 milestone, Ethereum (ETH) attempts to break out from a key resistance zone. The second-largest crypto rally has fueled optimism about its targets, with some suggesting that it could mimic BTC’s 2020-2021 rally. Related Reading: Bitcoin (BTC) Crashes 33% In South Korea Amid Increasing Political Turmoil Ethereum Reclaims $3,900 Ethereum, the second-largest cryptocurrency by market capitalization, has recorded a 10% surge in the past week, moving from the $3,500 mark to the $3,900 resistance. On Wednesday, the King of Altcoins surpassed the $3,800 level for the first time in six months and continued climbing to retest the $3,900 resistance, not seen since early March. In the early hours of Thursday, ETH turned this key zone into support, briefly dipping to $3,860 before jumping back to the recently reclaimed level. As the cryptocurrency nears its yearly high of $4,093, sentiment around the token’s short-term performance has turned extremely bullish. Ethereum is retesting a massive multi-year resistance zone, which could send ETH to a new ATH. According to analyst Alex Clay, the cryptocurrency attempts to break “through the Key Resistance Zone on the weekly timeframe.” ETH has rested the key zone five times since 2021, facing rejection from the upper resistance at $3,950 on four occasions before. However, Ethereum broke past this level in late 2021, when it hit its all-time high (ATH) and held above it for nearly three months. The analyst noted that if the King of Altcoins successfully breaks above this level and turns it into support, it will be the next “to break through” and smash its ATH. Clay added that he sees “no major pullback in the near time.” Similarly, crypto analyst Jelle stated that if Ethereum breaks above the March high, “all bets are off,” suggesting that the chances of ETH taking a long consolidation period before a new ATH like BTC did were “very low.” ETH To Rally Toward $10,000? Jelle also noted that Ethereum’s current setup mimicked Bitcoin’s in July 2020. Per the chart, Bitcoin broke through a multi-year downtrend line by mid-2020, followed by a massive 500% 10-month rally toward the $60,000 mark in April 2021. The analyst noted that ETH breached the multi-year trendline today, like BTC in 2020, which could trigger a similar rally toward new highs in the next few months. He added that investors are “in for a treat if this plays out anything similar.” In another post, he highlighted that Ethereum started rallying when Bitcoin broke its ATH and entered price discovery when BTC traded nearly 100% above its previous cycle high. Related Reading: Tron (TRX) Leads The Crypto Market With 100% Rally To New ATH, $0.5 Next? He considers that it would be surprising to “see things play out similarly this time around. BTC & ETH climbing in tandem, leading to ETH entering price discovery somewhere around ±$130,000.” Based on this, the analyst believes that a 150-200% rally toward the $10,000-$12,000 price range for the cryptocurrency is possible for this cycle. As of this writing, ETH is trading at $3,905, a 2.4% increase in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Bitcoin has achieved a major milestone, trading at six-figure levels for the first time since its inception. On Thursday, the cryptocurrency reached a new all-time high of $103,679, marking a year-to-date surge of over 140% and pushing its market capitalization above $2 trillion. This achievement has reignited enthusiasm within the investor community, solidifying Bitcoin’s position as a key player in the global financial market. Despite this impressive feat, Bitcoin has experienced a slight retracement. At the time of writing, it trades at $101,573, still up by 6% in the past 24 hours. Related Reading: Retail Demand Surges for Bitcoin: The Journey Towards $100K and Beyond Begins? What Comes Next? Market intelligence platform IntoTheBlock weighed in on this development, offering insights into Bitcoin’s potential trajectory. The platform’s analysts highlighted that Bitcoin’s capped supply and growing interest from institutional investors and even countries create significant upward potential. Bitcoin breaks $100.000! A major milestone, but what’s next? With a limited supply and substantial interest from large investors (and even countries), the potential seems limitless. However, we recommend taking a look at prior cycles to evaluate potential. This chart shows… pic.twitter.com/5b60oTRJy3 — IntoTheBlock (@intotheblock) December 5, 2024 However, past cycles suggest diminishing returns, with historical post-halving cycles showing returns of 7,900% in 2013, 2,560% in 2017, and 594% in 2021. Based on these trends, IntoTheBlock expect a more conservative growth range of 100%-200% from the halving price, suggesting a peak between $130,000 and $190,000. IntoTheBlock analysts particularly wrote: So while some are calling for a million dollars per Bitcoin, a more reasonable expectation would be a 100%-200% return from the halving price, placing the top between 130k and 190k. However the analysts also pointed out: “That is, unless Bitcoin becomes a global reserve asset of course.” Analyzing Market Trends and Investor Behaviour Meanwhile, a CryptoQuant analyst has provided additional insights into Bitcoin’s recent performance and market behaviour. According to the analyst, Bitcoin purchases continue to rise, with the Coinbase Premium Index reflecting strong buying activity in the United States. The index, which tracks the difference in price between Coinbase Pro and Binance, shows sustained positive data, indicating active participation by US investors. The analyst emphasized the importance of monitoring this index alongside broader trend analysis. For example, during periods classified as “fear phases,” where buyers retreat and bearish momentum fails to materialize, the market often creates opportunities for strategic entry points. Related Reading: $1.87B Bitcoin Withdrawals From Coinbase In 24H – What This Means To Price If the index remains in the positive zone, it signals a continuation of the uptrend, making pullbacks an optimal time for positioning. Until Bitcoin reaches what the analyst describes as the “excess phase,” buying positions should be held, while profitable positions should be secured to mitigate risk. Featured image created with DALL-E, Chart from TradingView
Bitcoin has reached a landmark moment in its history earlier today, crossing the $100,000 price mark for the first time and cementing its position once again as the largest cryptocurrency by market capitalization. As it stands, BTC all-time high is at roughly $103,679. This significant achievement has prompted a detailed analysis of its supply distribution, offering valuable insights into the behavior of long-term and short-term holders and the broader implications for the Bitcoin market. Related Reading: Bitcoin’s Silent Whales: Rising Exchange Inflows Hint at Market’s Next Big Move Supply Distribution and Market Behaviour Amid the excitement of Bitcoin’s new all-time high, an analysis from CryptoQuant’s analyst, Crazzyblockk, sheds light on how this milestone impacts the cryptocurrency’s realized cap and the broader market structure. While the milestone reflects growing global adoption and investment confidence, it also raises questions about the potential trajectory of the market. According to the analysis, Bitcoin’s supply is currently divided between two key groups of holders: long-term holders (LTHs) and short-term holders (STHs). CryptoQuant data reveals that out of Bitcoin’s total supply, over 14.5 million BTC are held by LTHs, while nearly 5 million BTC are in the hands of STHs. Despite the price surge, only 52% of Bitcoin’s realized cap is attributed to STHs, a stark contrast to previous market peaks where this figure typically exceeded 80%. Historically, Bitcoin’s realized cap trends reveal distinct behaviors during market cycles. During bear market phases, most realized cap shifts towards LTHs as accumulation intensifies, signaling the end of the bearish trend. Conversely, during bull market peaks, the realized cap tends to be dominated by STHs, driven by speculative trading and short-term profits. However, the current distribution shows a higher concentration among LTHs, indicating a deviation from traditional market patterns. Implications for Bitcoin’s Market Momentum According to the CryptoQuant analyst, the relatively low realized cap held by STHs in the current market cycle suggests reduced selling pressure, which may support sustained price growth. The analyst revealed that with a significant proportion of Bitcoin held by LTHs, market confidence appears strong, potentially providing a buffer against abrupt price corrections. This stability is crucial as it reflects long-term investor trust and reduces the likelihood of speculative volatility. Related Reading: Bitcoin’s Next Move? Coinbase Premium Suggests a Short-Term Rally May Be Brewing In addition, the analysis also highlights that this supply distribution aligns with a long-term bullish outlook for Bitcoin. The reduced participation of STHs in the realized cap indicates room for further upward movement as more capital may enter the market without triggering a significant sell-off. The analyst wrote: In conclusion, Bitcoin reaching $100,000 is a historic achievement, but the current supply dynamics suggest the potential for further upward movement, given the stability provided by LTHs and the relatively low participation of STHs in the realized cap. Featured image created with DALL-E, Chart from TradingView
On-chain investigator Coffeezilla recently accused influencer Hailey Welch and the HAWK memecoin team of scamming her fans with their recent token launch. The team faces backlash because the cryptocurrency nosedived 94% just over 12 hours after launching, leaving investors empty-handed. Related Reading: South Korean Crypto Exchanges Hit Record-Breaking $34 Billion Volume Following Market Shakeout The […]
Tron (TRX) joined the crypto market’s rally by jumping over 100% in 24 hours to a new all-time high (ATH). Its surge ignited a bullish sentiment among crypto investors and market watchers, fueling optimism for higher targets. Related Reading: Bitcoin (BTC) Crashes 33% In South Korea Amid Increasing Political Turmoil Tron Hits New ATH After 7 Years As Bitcoin (BTC) continues moving sideways between the $94,000-$96,00 price range, many altcoins have started recording massive rallies. Cardano (ADA) recently reclaimed the $1 mark in a 200% rally, while XRP soared above the $2.5 resistance on a 300% surge. Yesterday, TRX, the native token of the Tron Blockchain, soared 104% intraday to hit its news ATH in nearly seven years. The token moved from its daily low of $0.22 to the $0.29 mark, surpassing its previous high of $0.23. The rally continued with another jump above the $0.30 barrier before climbing to its latest ATH of $0.45 on Tuesday night. The surge saw the cryptocurrency flip some crypto rivals, sending Tron back into the top ten crypto list. According to CoinMarketCap data, TRX’s market capitalization hit over $36 billion, surpassing Toncoin (TON) and Avalanche (AVAX) by this metric. Tron founder Justin Sun highlighted the feat in an X post: 6 years later. Still here. Still #BUIDLing. Things have changed, but one thing hasn’t: #TRON remains a top 10 contender. Since then, Tron has retraced around 20%, hovering above the $0.35-$0.36 zone before falling to the $0.33 mark. Despite the retrace, TRX remained the leading cryptocurrency, with 20% gains in the last 24 hours. TRX’s Rally To Continue? As TRX’s price surged, crypto analyst Javon Mar stated that Tron was “HEAVILY on what can be soon noted as a historical bullish move.” He also suggested that the cryptocurrency’s price was “far from done,” forecasting another massive rally to the $1.1 area. Similarly, another analyst noted that TRX has “finally triggered a MEGA setup from all the way back in 2018 on its dominance chart” against all other Altcoins. And added that Tron has “barely put its running shoes on.” Related Reading: Solana (SOL) Could See A Correction Despite Historic Monthly Close, $400 Still On Sight? The analyst also signaled that a test of the previous ATH was possible as a retest of that level as support could propel the token to $0.50. However, Team LAMBO advised to watch out for the $0.33 level. The analyst stated that Tron was possibly “cooking a massive bull flag on the 15-minute timeframe,” with the bottom trendline between the $0.35-$0.36 price range. A breakout above $0.42 could target the $0.60 barrier while breaking down the pattern and losing the $0.33 support would invalidate it. As of this writing, TRX is trading at $0.33, a nearly 80% surge in the past seven days and a 116% monthly jump. Featured Image from Unsplash.com, Chart from TradingView.com
Yesterday, the South Korean crypto market suffered a violent drop after an emergency martial law was declared. This caused a massive sell-off that sent the price of most cryptocurrencies to monthly lows. After the turmoil, local exchanges saw a record-breaking daily trading volume for the second consecutive day, nearly doubling the previous milestone. Related Reading: […]
Two central figures behind the cryptocurrency Ponzi scheme known as IcomTech have been sentenced to substantial prison terms, according to a recent press release by the US DoJ. The scheme defrauded thousands of investors out of millions of dollars, leaving financial devastation in its wake. The sentencing marks a major legal conclusion to one of […]