Daily Crypto Signals: Bitcoin Dips Under $110K, Analysts Target $20K for Ethereum
A massive whale sell-off has pushed Bitcoin's price under $110,000, while Ethereum has bucked the bearish trend, reaching a new ATH near $5K
Quick overview
- Global regulators express concerns over tokenized stocks, stating they lack investor protections compared to traditional stocks.
- Major crypto firms are reportedly raising $1 billion to invest in Solana, which has seen a 6.6% increase in value over the past month.
- Bitcoin experiences significant volatility due to whale activity, with a notable drop below $112,174 attributed to large sell-offs.
- Ethereum is in the 'belief phase' of its bull cycle, with analysts predicting potential price targets of $10,000 to $20,000 based on positive technical indicators.
Global regulators push back against tokenized stocks as major crypto firms plan billion-dollar Solana SOL/USD fund, while Bitcoin BTC/USD experiences whale-driven volatility and Ethereum ETH/USD enters what analysts call the “belief phase” of its bull cycle.
Crypto Market Developments
Over the weekend, the cryptocurrency market was very unstable. There were both big institutional moves and worries about regulations. The European Securities and Markets Authority (ESMA), the International Organization of Securities Commissions (IOSCO), and the World Federation of Exchanges (WFE) are some of the global regulators and exchange industry groups that have sent a letter to the SEC’s Crypto Task Force expressing concern about tokenized stocks. These groups say that tokenized stocks “mimic” regular stocks but don’t offer the same protections for investors, which might put traders at great risk.
At the same time, three big digital asset companies—Galaxy Digital, Multicoin Capital, and Jump Crypto—are said to be trying to fund $1 billion to buy Solana (SOL). Cantor Fitzgerald is the main bank for the deal. With the support of the Solana Foundation, this would make the greatest treasury just for Solana. The move comes as SOL trades above $200, up 6.6% in the last 30 days, keeping its place as the sixth-largest cryptocurrency by market cap.
Bitcoin Falls Under $110,000 Due to Sell-offs
Over the weekend, Bitcoin was under a lot of pressure to go down. It fell below $112,174 on Sunday before bouncing back a little. Whale behavior is mostly to blame for the drop, with well-known Bitcoin expert Willy Woo saying that Bitcoin’s oldest whales sold their coins after holding them for years. A seven-year Bitcoin whale moving almost $2 billion worth of Bitcoin into Ethereum over the past week was a particularly interesting transaction. It caused the price to plummet 2.2% in only 10 minutes on Sunday. Four days earlier, there was another big whale activity when 670 Bitcoin worth $76 million were sold to initiate a long ETH position.
Even if the price of Bitcoin is quite unstable, the demand for Bitcoin futures has reached an all-time high. On Monday, open interest rose to 762,700 BTC, which is 13% more than it was two weeks ago. But the futures premium stays at a neutral 8%, and put options are still trading at a 10% premium over calls, which shows that investors are still feeling gloomy. Between August 15 and August 22, US-listed spot Bitcoin ETFs saw a net outflow of $1.2 billion, which made things even worse. Analysts say that Bitcoin’s recovery depends on spot ETF inflows starting up again and investors being able to focus on fundamentals instead of whale selling activity.
Ethereum Price Prediction: $20,000 Next Target?
Ethereum has been doing really well, rising more than 240% since April and setting a new record high above $5,000 on Sunday. Onchain study shows that Ethereum is now in the “belief phase” of its bull cycle. The long-term holder net unrealized profit/loss (NUPL) indicator has moved into the “belief-denial” zone, which is a position that has historically come before big price increases. This means that ETH hasn’t yet entered the euphoric phase that usually comes with cycle peaks. This could mean that there are still big gains to be made.
A lot of analysts are now saying that Ethereum’s technical outlook is getting more and more positive, with prices expected to go up a lot. The market value to realized value (MVRV) ratio is at 2.08, which is far lower than the previous cycle highs of 3.8 in 2021 and 6.49 in 2017. This means that Ethereum is still not getting the value it deserves. Gert van Lagen, an analyst, says that Ethereum needs to “still climb further” to reach the ecstatic phase, and that price targets of $10,000 and $20,000 are “not unimaginable.”
Technical analysis backs up these bold predictions. Ethereum’s daily chart shows a confirmed rounded bottom pattern that aims for $12,130, which would be a 161% rise from where it is now. Ethereum might have a long rally for the rest of the bull cycle because of excellent onchain metrics, institutional interest, and technical breakouts.
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