Connect with us

Uncategorized

All Eyes on Bitcoin

Published

on

Bitcoin saw explosive growth immediately after the recent U.S. presidential elections, rising and retaking the spotlight from former highs of $73,000 in March. Now the question is, will bitcoin (BTC) continue its uptrend, and at what point can a sharp reversal happen?

If we take a look at former BTC market cycles, which happen every four years, then we see that we are now just starting to go into new bitcoin price discovery areas, and BTC could top out at new all-time highs, which is practically anything greater than the current resistance of $92,000. Bitcoin could even potentially see highs of $140,000+ based on prior supply and demand — i.e. halving cycles. On the contrary, what makes this market cycle a bit different than others is the vanished principle of BTC being an inflation hedge or digital gold. In theory, it was supposed to be — that is, at least, likely what Satoshi intended since bitcoin was created after the 2008 financial crisis. From what we saw in the last cryptocurrency bear market cycle, BTC is not an actual inflation hedge and performs like all other risk-on assets, so sentiment could change once the inauguration happens in January.

As we’ve seen before, politics could potentially just be politics until we see actual regulatory rollouts and a more favorable U.S. stance on paper with policies and laws that the markets fully embrace. Things seem to be going in the right direction with the news of Gensler resigning come January 20, 2025. The question remains on who will be his replacement; the wrong person and the smallest sentiment change in the wrong direction could fully accelerate a drawdown in BTC. We’ve previously seen what every Fed meeting minute has done to the price action of crypto which has, up until recently, always been negatively perceived. In other words, we are not fully out of the woods just yet, especially until there is clarity on who could be Gensler’s replacement.

The BTC ETFs played a vital role this year in institutionalizing the cryptocurrency, which allowed for RIA and fiduciary investment in bitcoin, although in a turnaround market the same volumes that helped bitcoin get to the point it is at today can be the same volumes and outflows that present a downfall. This can lead to crippling sentiment as we all know the crypto bull market does not last forever and drawdowns of 70-80% can be expected.

Looking at prior BTC bull market cycles, BTC has seen drawdowns of 20-30%. Can the same be expected with all the new factors under the current and new market structure? Analysts assume less drawdown and volatility scenarios due to the BTC ETF options offered by iShares and others, although on the contrary, systematic strategies still seem to be sought after with investors taking bets on market volatility, which only recently (in 2022) saw an equity market-like expansion in the crypto markets where enough volume, market cap, and stability existed for the shorting functionality of some coins.

With more market participants and more avenues of shorting functionality across all crypto assets, including BTC, this can create more volatility in the short-term. Compared to the last market cycle, there are a lot more traditional finance (TradFi) players trading and market making in the space now, which in a way is offset by more institutional capital locked up (mostly in ETFs since the venture space in crypto dried up from the fast money of the last bull market). Although in a way, no matter how much institutional capital enters the space, the market cycle of BTC will follow volatility— it’s just in its decentralized nature.

Regardless of whatever outlook one has on the price of BTC, it’s important to realize that this is a different market than before. Gone are the days of quick “hot money” returns with the inevitable crypto risk factors ever present. One must remain cautious, but optimistic, on where things are going, if not bullish on the market cycle and structure alone. Regardless, for every type of investor, there is a huge opportunity due to the immense growth of the industry, and when that window will close is anyone’s guess — the only thing for certain is that the new market cycle is just getting started.

Continue Reading
Click to comment

Leave a Reply

Ваш адрес email не будет опубликован. Обязательные поля помечены *

Uncategorized

Ethereum Surges After Holding $2,477, Fueled by Very Heavy Trading Volume

Published

on

By

Global economic tensions and trade disputes continue to influence cryptocurrency markets, with ETH showing resilience despite broader market uncertainty.

The second-largest cryptocurrency is currently navigating a critical technical zone between $2,500-$2,530, which analysts identify as immediate resistance that must be overcome for continued upward movement.

Institutional interest remains strong, with spot Ethereum ETFs recording consecutive days of positive inflows, signaling growing confidence from larger investors despite the recent volatility.

Technical Analysis Highlights

  • 24-hour ETH price action revealed a substantial 3.5% range ($99.85).
  • Sharp sell-off during midnight hour saw price plummet to $2,477.40, establishing a key support zone.
  • Extraordinary volume (291,395 units, nearly 3x average) confirmed the significance of the support level.
  • Buyers stepped in at the $2,467-$2,480 support band, confirmed by high-volume accumulation during the 08:00-09:00 period.
  • Recent price action shows bullish momentum with ETH reclaiming the $2,515 level.
  • Potential higher low pattern suggests the correction may have found its bottom.
  • $2,520-$2,530 area remains the immediate resistance to overcome for continued upward movement.
  • Significant bullish surge at 13:35 saw price jump from $2,515.85 to $2,521.79, accompanied by exceptional volume (5,839 units).
  • Sharp reversal occurred at 14:00, with price dropping 5.07 points to $2,508.02 on heavy volume (4,043 units).
  • Hourly range of 14.46 points ($2,508.02-$2,522.48) demonstrates market indecision.

External References

Continue Reading

Uncategorized

XRP Plunges Below $2.30 Amid Heavy Selling Pressure

Published

on

By

Global economic tensions are weighing heavily on cryptocurrency markets as XRP experiences a significant correction amid heavy selling pressure.

The recent announcement of potential 50% tariffs on European Union imports by the US government has triggered widespread market uncertainty, with XRP falling alongside most major cryptocurrencies despite Bitcoin recently reaching new all-time highs.

Technical analysts point to critical support at the $2.25-$2.26 range, with market watchers warning that a break below this level could trigger deeper corrections toward the $1.55-$1.90 zone.

Meanwhile, institutional interest remains strong with Volatility Shares launching an XRP futures ETF and leveraged ETF inflows surging despite the price dip, suggesting Wall Street continues accumulating positions during market weakness.

Technical Analysis Highlights

  • XRP underwent a notable 3.46% correction over the 24-hour period, with price declining from $2.361 to $2.303, creating an overall range of $0.084 (3.57%).
  • The most significant price action occurred during the midnight hour (00:00), when XRP plummeted to $2.297 on exceptionally high volume (37.1M), establishing a strong volume-based support zone.
  • A secondary sell-off at 08:00 saw price touch the period low of $2.280 with the highest volume spike (39.9M), confirming a double-bottom formation.
  • In the last hour, XRP experienced significant volatility with a recovery attempt following the earlier correction.
  • After reaching a low of $2.297 at 13:11, price formed a base around $2.298 before staging a substantial rally beginning at 13:27, peaking at $2.307 at 13:36-13:39 with exceptionally high volume (627K-480K).
  • This bullish momentum created a clear resistance zone at $2.307, which was tested multiple times.
  • The final 15 minutes saw profit-taking pressure emerge, with price retracing to $2.300, establishing a short-term support level that aligns with the psychological $2.30 threshold.

External References

Continue Reading

Uncategorized

Bitcoin Drops Below $107.5K as Trump Tariff Threat Triggers Crypto Sell-Off

Published

on

By

Bitcoin’s recent pullback has established strong volume-based resistance near $108,300, with support forming in the $106,700-$107,000 zone.

The correction accelerated with a notable price surge from $107,373 to $107,671 between 13:06-13:36, followed by a sharp reversal.

Technical analysis suggests Bitcoin is now trading within a compression zone, trapped between two major fair value gaps that will determine the upcoming market direction.

If bulls reclaim the $109K to $110K area, price could push toward resistance beyond $112K, while a break below $107,000 might test liquidity around $106K.

Technical Analysis Breakdown

  • The decline accelerated during the 22:00-23:00 hour on May 24th with exceptionally high volume (16,335 BTC), establishing a strong volume-based resistance near $108,300.
  • Support has formed in the $106,700-$107,000 zone where buyers emerged during the 09:00-10:00 period on May 25th, though recovery attempts have been modest with price consolidating around $107,500.
  • The overall technical structure suggests a short-term bearish trend with potential for further consolidation before directional clarity emerges.
  • Bitcoin experienced significant volatility with a notable price surge from $107,373 to $107,671 between 13:06-13:36, followed by a sharp reversal that saw prices decline to $107,393 by 14:00.
  • The most substantial price movement occurred during the 13:35 minute candle where BTC jumped nearly $150 with exceptionally high volume (148.76 BTC), establishing temporary resistance around $107,630.
  • Support formed near $107,400 where buyers emerged during the final minutes of the period, though the overall technical structure suggests continued consolidation within the broader correction from the $109,239 high.

External References

Continue Reading

Trending

Copyright © 2017 Zox News Theme. Theme by MVP Themes, powered by WordPress.