Bitcoin Flashing Bearish Signals-Is the BTC Price Attempting to Trap the Bulls?
With the growing trend of new tokens like PEPE or BRC-20 tokens, the Bitcoin price is experiencing stagnant price movement. The choppy price actions of the top popular tokens are expected to continue as the token is closer to validating a bearish pattern. Although the price just rebounded from lows below $26,000, it cannot be certified as the resurgence of a bullish trend, and hence the bulls are expected to be trapped for a while.
The BTC price experienced a fresh price jump that successfully tested the 200-day MA levels. Besides, the Bitcoin MVRV-Z score had surged back to positive levels, which hinted at the end of the bearish market. Additionally, the price also underwent a failed breakdown, meaning the price sliced down the lower support of the descending triangle and quickly bounced back to re-enter the pattern. This also indicates the completion of a bearish retest, and hence the price may now be ready to undergo a bullish breakout.
However, the bearish clouds do not appear to have waned to a large extent, as the BTC price is closer to breaking below the bull flag pattern. A popular analyst, Rekt Capital, believes that a rejection from these levels may drag the BTC price lower in the coming days.
Although the price is trying to rebound, the BTC price is required to reach minimum levels of $27,600 support. The analyst believes that if the price is able to reclaim the levels around $27,600, then the trend may form a falling wedge pattern as the condition remains dynamic at the moment.
Overall, the trend continues to remain bearish as the BTC price failed to reclaim the $28,800 weekly range. Rather, the price closed below $27,600 as it failed to hold the interim support. Hence, if the Bitcoin price rises beyond the $27,600 resistance, then a significant upswing may be expected; otherwise, the trend may plunge hard to mark the lows close to $20,000.
Bitcoin Price Above $27,000- Is the Breakout Real or a Trap to Drag the Price to $20,000?
Bitcoin price is displaying magnificent moves in recent times as the crisis within the US banking system deepens. Therefore, the prices appear to continue to rise throughout the impending weekend, aiming to reach $30,000 at the earliest. However, these levels are extremely crucial as along with being a strong resistance zone, it is the POC or Point of Control at which the greatest number of tokens have been traded with a higher volume.
Based on the historical performance, the BTC price displays the probability of plunging down to $20,000 fully or partially to fill the GAP formed on the CME Futures. These gaps have been filled at least partially every time. So when will the current Gap be filled?
Bitcoin price is raising now and the next strong resistance is around $30,000. The price earlier witnessed huge swings at these levels where-in huge volume was also registered. Hence surpassing these levels may not be easy but once done may spark a minor bull run ahead.
Previously, the token was stuck at these price levels for quite a long time as the bulls and bears continued to perform their duties. This attracted a huge volume over the platform and hence testing these levels appear to be extremely important for the BTC price which may completely eliminate the bearish influence.
Besides, considering the Elliot Wave perspective there are valid bearish and bullish scenarios in the whole uptrend that ignited at $15500 to the current levels above $27,000. Moreover, the price has been flowing within an expanded channel which may spark a rejection from the resistance which is just a couple of dollars above. If the price surpasses this level, a clear test at $30,000 could persist.
Therefore, Bitcoin (BTC) is expected to reach $30,000 anyhow and display a diverse trend at these levels. Huge trades have been carried out at these levels in the past and hence it rises the possibility of massive price action. A breakout from these levels may rise the levels beyond $35,000 to reach $40,000, while a drop may drag the price close to $20,000.
Bitcoin Bull Trap or Actual Rally? What’s Next For BTC Price
Bitcoin’s (BTC) price has pumped over 22 percent in the past five days to trade around $24,513 on Tuesday. By now, it is safe to assume that the recent pump is a result of the Fed pivot on Signature Bank and Silicon Valley Bank.
Moreover, the Fed has eased its fight against inflation by bolstering systemic bank failures over the past weekend. The Biden administration has blamed the Trump administration for unwinding banking regulations that prevented the 2008 financial crisis.
Nonetheless, the recent bank rescue by the Biden administration has been viewed as a free advertisement on Bitcoin and other top digital assets. Moreover, self-custody through Bitcoin was not compromised during the recent banking crisis. As such, cryptocurrency exchange Binance announced the conversion of its $1 billion Industry Recovery Initiative funds from BUSD to Bitcoin, Ethereum, and BNB.
Bitcoin Price Analysis
According to Jason Pizzino, a veteran cryptocurrency and stock market macro trader, the recent 20 percent pump on Bitcoin is a positive outlook for the bulls. Pizzino told over 282k YouTube subscribers that Bitcoin’s logarithmic downtrend could be invalidated soon if Bitcoin price breaks above $25k.
The analyst indicated that the upcoming CPI data and next week’s FOMC statement on interest rates from the Fed would significantly impact the next Bitcoin outlook.
Having bounced from the logarithmic downtrend, Pizzino indicated that Bitcoin price is well bolstered to rally further due to increased short squeeze and crypto market liquidations.
However, the analyst warned that the recent pump could be a bear trap similar to the 2014 logarithmic downtrend when the Bitcoin price falsely broke out only to be trapped in a 365 days bear market.
Moreover, Bitcoin greed has been on the rise in recent weeks which could spark a fresh capitulation of the crypto market.
Cardano’s Bullish Trend Comes To A Halt As Bearish Trap Emerges! Will ADA Price Rebound Soon?
Cardano network made itself at the top of the league with continuous developments last week. However, despite gaining much traction with its Valentine’s upgrade, ADA price is now struggling even to hold its support level. Moreover, the latest downward move by Cardano has left investors worried as a bearish trap has formed, leaving ADA price vulnerable to new lows.
Cardano Takes An Unexpected Turn Amid Major Upgrades!
Input Output, the developing team behind Cardano, has recently released its weekly report on the development of the ecosystem. This update follows the Valentine’s Day release and precedes a significant milestone on Cardano’s roadmap: the journey to the Voltaire era.
The roadmap states that the Voltaire era is the fifth and final phase of Cardano’s development. This transition is of particular significance, as Cardano’s founder, Charles Hoskinson, has previously said that it will demonstrate the process of implementing decentralized governance in the crypto industry.
According to reports, the development team has been making ongoing efforts to address technical backlogs, enhance testing infrastructure, and improve documentation related to the formal CIP-1694 specification, which outlines a proposal to transition into the Voltaire era.
Though the Cardano network is putting all efforts toward improving users’ experience, the ADA token has made a significant price plunge in the last few days and seems to form a bearish trap ahead with a solid divergence pattern.
What’s Next For ADA Price?
For the last two days, the bulls were successful in maintaining Cardano’s ADA token above the critical support level of $0.35. However, they were unable to maintain the rebound above the EMA-20 trend line at $0.38, indicating that the bears are selling during small rallies.
As of writing, ADA price trades at $0.36, with a decline of 4.41% in the last 24 hours. Looking at the daily price chart, bulls are now defending the weekly support level of $0.35, as a breakout may slump the token to $0.28.
However, a prominent crypto analyst, MMBtrader, predicts that ADA price is now preparing for a reversal as it has reached the buyers’ zone for initiating long positions. As seen in January, ADA may continue its bearish trend to $0.32 and make a bullish comeback which will push the token’s price to the critical resistance of $0.42. A trade above EMA-200 will take the token to the level of $0.5 by the beginning of March.
Analyst Warns Investors as Bitcoin Might Be Setting up a Huge ‘Bull Trap’
Investors are waiting to see if Bitcoin (BTC), the flagship digital asset, can break through the barrier at this level and trade above $25,000. In the previous few days, Bitcoin briefly reached $24,900, the flagship asset’s highest price in six months.
The market appears to be gathering up momentum, and individuals are ignoring any bearish news, which are signals that many in the sector believe the worst is over, suggesting that the market bottomed in November and has now turned positive.
An analyst is warning cryptocurrency investors against loading up on Bitcoin right away when the table seems to have turned. Crypto expert Nicholas Merten explained in a new strategy session that Bitcoin’s price is expected to decline, creating a bull trap for traders who recently went long on BTC’s recent positive price action.
In order to show that a liquidity trap is building at the current levels, he warned that Bitcoin has not yet traded and held support above the 200-week moving average.
The analyst said that investors are already chasing the price rather than simply waiting for it to stay above the 200-week and find support there. He then highlighted that Bitcoin is in the same supply zone or resistance range that it was in August, perhaps just a little bit higher to pique interest and generate excitement, breaking above the price action in August and a couple of times breaking slightly above that 200-week moving average without being able to form support.
“And that’s the big mistake that everyone’s making because that is a liquidity trap, Classic 101 example of how to market investors or more specifically institutional investors can trick retail traders and take advantage of that output side pressure in order to serve as exit liquidity for positions.”
Can Solana (SOL) Rally Push Beyond Pre-FTX Levels or is It a Bear Trap?
Solana price has broken a three-week rising trend, thus questioning the momentum to push beyond pre-FTX levels. According to our latest crypto price oracles, Solana’s price has dropped approximately 5.4 percent in the past 24 hours to trade around $23.22 today. After rallying over 100 percent in the past three weeks, the Solana bears are slowly taking control.
Consequently, a possible retrace could push Solana’s price to around $15, where the digital asset may find temporary solace. Moreover, the 200 MA in 4-H has risen to this level. Additionally, the RSI shows an overbought asset with a falling divergence, which indicates an imminent price fall. Perhaps the asset is forming a head and shoulder on the lower time frames, which could lead to psychological sell pressure.
Whether the bulls defend the rising trend in the coming weeks or not, the ultimate decision is likely to be affected by the Bitcoin market sentiment. Moreover, the January 2023 cryptocurrency rally has significantly been affected by Bitcoin price.
Solana Fundamental Aspects Shows More Pain Ahead
The Solana ecosystem has grown to a top 20 project by market capitalization due to its huge backing from whale investors. However, the network activity has significantly declined in the past year fueled by the FTX collapse. According to statistics from the token terminal, as shown below, Solana’s weekly active users have been declining in each subsequent quarterly since 2022.
Additionally, the total value locked (TVL) in the Solana ecosystem has significantly reduced since late 2021. The Solana TVL has moved from over $11 billion to about $270 million today.
Nonetheless, the Solana developers are hard at work building DeFi projects to be shipped out through the Saga mobile App Store.
Bitcoin Holds Jumps Above $23K, Is This A Bull Trap?
Initially the crypto market started the day on not so good terms, but one currency that has been holding on to its bullish momentum is Bitcoin. While the King currency is holding on to its $23,000, it suggests that investors are still positive on Bitcoin. This has resulted in the global crypto market moving past $1 trillion.
At the time of writing, Bitcoin is selling at $23,084 with a surge of 1.63% over the last 24hrs.
Meanwhile, a well-known crypto analyst and trader is predicting an opposite direction for Bitcoin. The analyst known as Capo informs his 710,100 Twitter followers that the crypto market performance is not dependent on organic demand. The direction in which the current bull runs and the high time frame resistance is moving, the analyst feels that it is manipulative without any demand.
Bitcoin To See Stronger Correction Ahead ?
To this one of his followers claimed that when Bitcoin price surged from $18,000, stablecoins got minted indicating demand rise. To which Capo asserted that this is definitely an artificial demand and the way this demand rises, stronger will be the correction.
However, last week Capo had claimed that Bitcoin was about to test its resistance level of $21,000. The analyst had also said that there is no bullish confirmation yet, but it turned out to be the opposite.
On the other hand, another crypto analyst and strategist known as Smart Contracter is of the opinion that the flagship currency will see some correction once BTC surges 38% in Jan.
Smart Contracter is the one who makes use of Elliott Wave theory which makes use of an advanced technical analysis to predict future price action. Elliott Wave uses crowd psychology that uses waves. As per the theory, whenever an asset is in waves one, three and five, it tends to be bullish. On the contrary, if an asset enters waves two and four, it suggests that the asset will see a correction.
Top Analyst Predict Bullish Continuations for XRP, APT & FTM- Is This the Beginning of Altseason or a Bull Trap?
The crypto markets traded sideways throughout the past weekend as the price of the major tokens appears to have been fluctuating within a range. The BTC price is also unable to breach the crucial resistance at $23,000, which was expected to be cleared quickly after clearing the pivotal zones at around $22,800.
However, some of the altcoins are displaying immense potential to rise beyond the resistance and maintain a notable upswing in the coming days. A popular analyst, Micheal van de Poppe, believes these tokens may maintain bullish momentum and clear the barrier soon.
Here’s his outlook on the key altcoins you need to keep a watch on for now.
Ripple has been showing significant strength which led to a 30% upswing in the past couple of weeks and uplifted the price beyond the crucial levels of $0.42. After the fresh upswing, the XRP price is believed to experience a minor pullback below $0.4 regions which may further trigger a strong recovery.
“That worked out for XRP
Now, I’d like to see $0.395 and hold as support
It not, then I’d be looking at $0.35 next,”
The Fantom price surpassed the main target by close to $0.25 and surged heavily to reach $0.4. Currently, the asset is facing some bearish action, which is preventing the price from rising above the highs.
However, the bulls are resilient and have been able to hold the price close to $0.4 which elevates the possibility of a bullish breakout in the next few hours.
“ This one should provide continuation in the coming week, but preferably I’d be cautious here too.
Aggro entry zone is around $0.34, which is a must-hold. Did give a bounce already.
Conservative long approach around $0.305,”
Aptos price, after a massive start in November, maintained a descending trend and within a very narrow range. The trading volume also remained extremely low due to which the price maintained involatile. However, the trend flipped heavily since the start of 2023. The bullish volume exploded and the momentum remained elevated.
“ This one has been accelerating quiet fast and I’m getting comments whether it can reach $360 this year.
Time to be conservative on this asset.
Aggro entry approach-$11.25
Defensive entry approach- $8.25 – $9.
Going to be incredibly interesting market,”
Crypto News Today: Is the Biggest Bull Trap Getting Bigger or the Resurgence of an Intrinsic Rally?
Crypto markets today have printed large green-bullish candles which have uplifted the sentiments from bearish to bullish. The star crypto, Bitcoin ranged high to recover the losses printed back in September 2022, indicating the possibility of laying down a significant upswing to reclaim the lost levels soon. Meanwhile, the altcoins also register double-digit gains which may also point toward an Altseason in the coming day.
But is this the largest bull trap ever or the end of the bearish trend? To decode this, first, let’s see why the Bitcoin price is going up.
The BTC prices underwent an extended narrow consolidation between $16,000 to $17,500 for nearly 2 months. Further, the prices quickly surged close to $21,500 by maintaining a firm upswing that began at the beginning of the year 2023. This upswing is said to have been fueled by the whales who accumulated more than 60,000 BTC.
As per the data from Santiment, the whales holding 1000 to 10,000 BTC, were dumped on Bitcoin throughout the year 2022, while they accumulated heavily over the past 15 days. They have accumulated 64,638 BTC worth nearly $1.46 billion which led to the largest spike since August 18, 2022.
It has to be noted that this surge is led by whales and not the retail traders who keep the markets active most of the time. The whales do cause a massive price change but it is restricted to just a short time frame, post to which the price remains consolidated within a very narrow range. Interestingly, despite a massive upward movement in the price, Bitcoin’s OBV or On-Balance Volume displays a bearish divergence.
On-Balance Volume(OBV) is a momentum indicator that considers the volume flow to predict changes in the value of the crypto. ‘The OBV is flashing some warnings on this move-up, says a known analyst, IncomeSharks referring to the above chart. All the previous moves displayed strength and surged along with a rise in OBV. But this time, it is displaying a bearish divergence and the retest of the resistance also failed.
The analyst here believes, the BTC price may undertake a violent move and plunge back to the lower support at $21,500 if the trend does not match with the OBV. Therefore, a significant correction may be expected during the weekend that may drag the Bitcoin (BTC) price slightly lower.
Expert Warns: Bitcoin Forming a Dangerous Bull Trap as Recession Looms – Is it Time to Sell Your BTC?
Bitcoin price could drop further in double digits percentage soon despite rallying about 40 percent in the past two weeks. These are sentiments made by popular crypto economist Nicholas Merten, the host of the DataDash YouTube channel with over 500k subscribers.
Merten noted that crypto and equity prices have been rallying in the past few months despite the lack of a positive economic outlook. As such, the analyst attributed the crypto rally to macroeconomic aspects including the global central bank’s liquidity which is not shrinking.
With minimal inflows of cash into the Bitcoin market caused by recession fears, Merten cautioned crypto investors that the relief rally is exhausted and a reversal is imminent. However, the analyst highlighted that Bitcoin price could rally further as it did in previous bear markets.
With Bitcoin price at the highest daily RSI overbought level in two years, Merten noted that bulls are exhausted and the bears are about to take control once again. Moreover, the analyst attributed the equities buybacks that were rampant in 2022 to a looming recession that will eventually crush Bitcoin prices.
“When it comes to the overall performance of equities and [how] it will have an effect on crypto, do not doubt it if global equities are in a major outflow. If we’re going into a recession and equity valuations start to go down towards lower levels, we continue having lower highs and lower lows which signify a downtrend, it would likely have the same effect on crypto. Until we see a break in that correlation, we got to think in that mindset,” Merten said.
Notably, Merten is warning crypto traders who think the recent rally is a sign of a looming major breakout. Moreover, on-chain analytics firms have identified a higher appetite for risky assets in the recent past.
Bitcoin Price Lacks Momentum To Rally Beyond $21,500 – Is it a Bear Trap? Here is Up Close Analysis
Bitcoin price has experienced a strong resistance of around $21k after rallying over 28 percent in the past 14 days. Over $26.60 million has been liquidated in the Bitcoin market during the past 24 hours and more coins observed leaving centralized exchanges. Market analysts believe the Bitcoin market is preparing to enter a correction phase after posting significant gains in the past few weeks. Moreover, meme coins – led by Shiba Inu and Dogecoin – have begun rallying, which is seen as the end of a crypto cycle.
However, all attention is on the pennant symmetrical triangle forming on the lower time intervals. Any strong breakout on either trend line of the pennant triangle will be used to extrapolate the next phase. For instance, should Bitcoin price rally beyond $21,500, and have a solid daily bar, traders will take it as a price continuation.
On the other hand, should Bitcoin price close the next few days below $21k, crypto traders will pick a correction in the making.
However, short-term traders should be aware of long daily winks that can stop hunts in either direction. Moreover, the cryptocurrency market is attributed to high volatility even in smaller time frames.
From the RSI indicator’s viewpoint on the smaller time frames, Bitcoin price could be preparing to reverse at current levels. Notably, while the Bitcoin pennant flag is on a rising trend, the RSI indicates overbought and a falling divergence.
On-chain data, however, indicates the Bitcoin price is responding to the open futures market that has recorded high liquidations in the last few weeks. Furthermore, the crypto sell pressure could significantly increase once FTX officials dump the $5 billion digital assets.
Dogecoin Rising Trajectory: Legitimate Trend Change Or Bear Trap? Where DOGE Price is Heading?
Dogecoin’s price has been on a rising trajectory since Elon Musk acquired Twitter Inc. for $44 billion late last year. From a daily and weekly chart, the Dogecoin price has formed a falling wedge, which usually signals that the trend will resume later on. As such, market analysts believe the meme lord could rally beyond its October highs of about $0.159 soon.
The rising narrative is backed by the 200W MA, which has supported the price in the past two days. Moreover, the Dogecoin price already broke out of the multi-week falling trend and is now retesting the trend line as a support level.
However, the narrative could be invalidated should the Dogecoin price fall below the trend line support, which would then act as a resistance level once again.
According to our latest crypto price oracles, Dogecoin has gained approximately 18 percent in the past 14 days to trade around $0.084497. The ninth-largest digital asset takes pride in a market capitalization of approximately $11,649,383,387 and a 24-hour trading volume of about $526,969,058. Notably, Dogecoin has recorded total liquidation of approximately $1.61 million in the past 24 hours according to aggregate data provided by Coinglass.
According to several crypto analysts, the next probable trend in Dogecoin is a multi-week consolidation before the next bull market takes place. Furthermore, in the past two bear markets that Dogecoin has existed, first between 2014-2017 and second between 2018-2020, consolidation has taken place in multi-quarter before going parabolic.
As the second largest proof-of-work (PoW) digital asset, Dogecoin has attracted investors from all over the world. According to on-chain data from Tokenview, Dogecoin has about 5,173,869 holders and a total hash rate of approximately 630.95 (TH/s).
Bitcoin Price Rally Or A Trap ? Here Is What Peter Schiff Claims
The current crypto market is flashing a massive bull run yet it is nothing like the previous one as this time Bitcoin has managed to trade above $21,000 in just 90 days. Also the Glassnode states that currently Bitcoin has more realized profit on-chain which was never seen since June 2022.
At the time of writing, Bitcoin is changing hands at $21,136 after a surge of 1.48% in the last 24hrs
On the contrary, Peter Schiff, a Bitcoin opponent, has come with his criticism predicting Bitcoin’s downfall. As per the analyst, the King currency will be once again pulled back lower than $18K. This is not the first time that Schiff has claimed a negative target for Bitcoin.
Peter Schiff : Bitcoin Bears Ahead
As per the analyst, the star cryptocurrency is not meant for investment purpose nor it can be a store of value. This claim comes as he believes that Bitcoin is prone to extreme volatility. The analyst has always stated that Bitcoin’s price rally is only because of speculations.
Furthermore, he says that once the Bitcoin bubble bursts there won’t be any purchases made in regard to BTC and investors will be in massive profit. He compares Gold with Bitcoin and asserts that gold is much more reliable with its track record and hence will have a longer time span.
However, like every time even now Peter Schiff’s prediction has attracted some massive criticism and the reason being no proper evidence for his claim. Now, it all depends on Bitcoin bulls on which direction they want to lead the King currency.
Is Bitcoin Bull Run on Track or It is Just Another Bullish Trap – Know More Her
Bitcoin price appears to have regained the lost momentum but the on-chain fractures despite the other side of the story. Undoubtedly, the price broke above the crucial resistance at $20,800 to mark highs close to $21,500, but the reason behind the spike may not support a continued upswing required to reach the crucial resistance at $22,500.
The speculation of a short-term bounce does not rely on the fact that the BTC price is witnessing a minor correction or facing constant rejections at $21,000. But the on-chain data points out the possibility of a bullish trap being laid out.
The exchange’s net flows which is the difference between the inflows and the outflows are surging towards the north. The values that maintained along the average levels, plunged hard indicating a huge flush out of tokens of exchanges.
However, the net flows surged heavily in the next couple of days as huge BTCs entered the wallets of exchanges. The supply on exchanges surged heavily to hit $29.32 billion at the same time with the number of BTC leaving the exchanges was very negligible.
Hence it can be assumed that the traders have kept their tokens on the exchanges, maybe to liquidate at the right time. This also points out the short-term holding which may drag the price lower in the coming days. Retail traders do not seem to have held a significant role in the recent price jump.
As the BTC price surge appears to have been fueled by an institution or an organization that has insider knowledge of bullish news or Looking for exit liquidity that may create a FUD in the market. Therefore, the market participants are required to keep a close watch on the Bitcoin (BTC) price rally for the next 24 to 48 hours.
Bitcoin Bull Trap: BTC Price To Hit News Lows in Coming Months Warns Analyst
Popular and pseudonymous cryptocurrency analyst il Capo of Crypto (Twitter: @cryptocapo) believes an imminent capitulation is awaiting the industry despite the recent Bitcoin rally above $21k. Addressing his 705.6k Twitter followers, the analyst highlighted several scenarios for top crypto assets. Generally, the analyst indicated that the base consolidation in the past few months is weak to guarantee a strong parabolic crypto move.
As such, a crypto market correction below the previous lows is imminent according to the analyst.
“Bitcoin is in a ltf parabolic move. But there’s a problem for bulls. This move is already overextended. The base of the parabola was weak, and when this ltf trend breaks it often results in sharp declines and full reversals,” the analyst indicated.
In conclusion, the analyst indicated now may be a good time for short-term traders to protect profits before a $12k surprise. Moreover, Bitcoin price already broke the 2017/2018 ATH, which is a strong factor in bearish sentiment.
Bitcoin and Crypto Market Outlook
The crypto market has enjoyed relief from FTX and Alameda’s fallout and also the 2022 bear market. The Ethereum (ETH) market has surged over 21 percent in the last seven days to trade around $1,565 on Monday. Nonetheless, the asset is still 67.7 percent lower than its ATH set on November 10, 2021. The bitcoin market, on the other hand, is down approximately 69 percent from its ATH.
Meanwhile, the Solana ecosystem is enjoying the crypto FOMO rally with a modest growth of about 145 percent in the past fourteen days. While Solana network was the most hit by the FTX implosion – down over 90 percent since ATH – Santiment believes the recent rally is fueled by liquidated shorts.
Why Bitcoin (BTC) Price Surged Above $20K? Bull Run Or Bull Trap?
Bitcoin price rallied over 23 percent in the past seven days to close the weekly bar on bullish sentiment. As of Monday, the top digital asset traded around $21,152.82, up 2 percent in the past 24 hours, according to our latest crypto price oracles. While there are so many factors that could have led to the recent crypto pump, market intelligence platform Santiment believes Bitcoin whales are the core contributors.
Reportedly, about 416 more Bitcoin addresses hold between 100 to 1,000 BTC in the past eight weeks alone.
Following the recent crypto pump, Bitcoin price has regained pre-FTX levels, thus restoring confidence in decentralized technology. Moreover, the total crypto market capitalization topped $1 trillion on Monday according to data from Coingecko.
Onchain analytics platform Glassnode highlighted that Short-Term Holders (STH) have recorded their most profitable trades since April last year.
With Bitcoin’s price around $21k in the past three days, analysts believe the worst days may be gone with possibilities of multi-quarterly consolidation before retesting ATHs and moving to price discovery regions.
As such, crypto-related stocks have rallied together with the Bitcoin market in the past few weeks. For instance, according to market data provided by MarketWatch, Coinbase Global Inc. (NASDAQ: COIN) and Marathon Digital Holdings Inc. (NASDAQ: MARA) shares are up approximately 50 percent and 87 percent respectively in the past five days.
The total value locked on decentralized financial platforms has risen by a factor of 2 percent in the past few days to $45.45 billion. Ethereum (ETH) network remains the undisputed smart contract DeFi ecosystem with a TVL of about $27.28 billion.
Ethereum Sharks Pushes the Price Above $1400-While the Risk of a Bull Trap Increases
The crypto markets have been pleasant on the market participants as the majority of cryptos are heading towards their pivotal resistance, as soon as Bitcoin ignited a minor bull rally. Additionally, the global crypto market capitalization is also heading toward $900 billion, soaring by nearly 5% in the past 24 hours. Following the star crypto, the second largest crypto, Ethereum also sliced through its critical resistance at $1385 and jumped above $1400 in no time.
As Coinpedia reported earlier that Ethereum’s Knock-back is impeding, the current upswing may still be nullified, trapping the bulls close to $1500.
In a recent update, the number of Ethereum’s shark addresses holding 100 to 10,000 ETH tokens has swelled adding up to 3000 addresses in the past 10 weeks. As per the data from Santiment, the number of addresses has now reached 48,556 which is the highest level recorded since February 2021.
As seen clearly in the chart that the sharks tend to extract their profit after the price records significant gains. Previously, the no. of addresses continued to rise immediately after the markets crashed in May 2022.
The whales kept on adding ETH until the price regained levels close to $1800 after facing rejection from $2000. This was when the majority of the sharks just extracted their profits which is one of the reasons, the ETH prices dropped below $1300 in the next 2 months.
Now when the addresses count is raising since then, yet another possibility of a drastic drop haunts the Ethereum price rally. Presently, the ETH price is attempting very hard to hold above the gained levels at $1400 as the bear’s pressure has intensified. If the price is able to sustain above the crucial resistance-turned-to-support at $1385 until the day’s close, the bearish narrative may be invalidated for sometime ahead.
Bitcoin at a Critical Support Despite a Drop Below $19,000-Is it a Bear Trap?
Bitcoin price broke the crucial support line and slumped hard below $19,000 just before the release of the fresh CPI rates. The market is expecting yet another shock wave as the MoM of the FOMC meeting hinted at an increase in the rates to lower the rising inflation. Therefore, in such a scenario, wherein BTC prices have dropped after each announcement, a similar reaction is expected in the next couple of hours.
Presently, the asset is trading within a crucial support zone after breaking down from a bear flag. Hence, the upcoming CPI rates may surely drag the price below the support levels. However, one of the well-known analysts believes the dump could be nothing but a bear trap, which may compel market participants to sell their assets at the bottom.
Capo points out the rising SPX 500, to which the crypto markets are said to correlate. On the other hand, the dollar strength DXY Index has been dumping firmly. Therefore, the analyst believes a massive rebound may still be expected that may uplift the price beyond $21,000 very soon. However, if the attempt for a rebound fails, then the BTC price may face a rejection & drop hard to plunge close to $16,000.
No matter, the market sentiments are bearish, but the bulls appear to be awaiting the right time to jump in as the prices reach $18,100. Therefore, the upcoming CPI rates are expected to drag the price close to $18,000 but may certainly hold these support levels and also trigger a firm rebound. With a rebound, Bitcoin price may rise high surpassing the crucial resistance at $20,800 to reach $21,000 very soon.