Daily Crypto Signals: Bitcoin Reclaims Key Support, Ethereum Eyes $5,000
The cryptocurrency market showed signs of recovery as Bitcoin regained the crucial $112,000 support level while traders positioned for a
Quick overview
- Bitcoin regained the crucial $112,000 support level, indicating potential upward momentum in the market.
- The CFTC is enhancing its regulatory framework by integrating Nasdaq's surveillance technology to combat market manipulation.
- Ethereum is poised for a potential breakout above $5,000, supported by a favorable options market structure.
- Despite the positive developments, some analysts caution about the mixed market sentiment and the importance of maintaining key support levels.
The cryptocurrency market showed signs of recovery as Bitcoin BTC/USD regained the crucial $112,000 support level while traders positioned for a potential Ethereum ETH/USD breakout above $5,000 following Friday’s $5 billion options expiry. Regulatory developments also dominated headlines as the CFTC integrated Nasdaq’s surveillance technology to combat market manipulation, while Cronos surged 40% on Trump Media Group partnership news.
Crypto Market Developments
There were big changes in the bitcoin market and regulations this week. The US Commodity Futures Trading Commission said that Nasdaq’s advanced market monitoring equipment would be added to their system. This is a big step forward in the fight against insider trading and manipulation of the crypto market. The advanced monitoring system will look at order book data from different trading venues and connect activities across traditional and digital asset markets. This will replace the CFTC’s old infrastructure from the 1990s.
In the meantime, judicial processes continued as US authorities appealed the low penalties imposed to HashFlare co-founders Sergei Potapenko and Ivan Turõgin, who got time served after running a $577 million bitcoin mining fraud operation. The prosecutors first asked for 10-year prison sentences, saying that the case was the biggest fraud the court has ever seen.
Bitcoin Support Holds at $112,000
Bitcoin showed strength by reclaiming the important $112,000 support level and the 100-day exponential moving average around $110,850. This could mean that the price is going up. The cryptocurrency shot up more than $3,000 from recent multiweek lows, hitting local highs of $112,646 on Bitstamp as buyers rushed in to protect important technical levels. BitBull, a well-known trader, said that Bitcoin’s rise over the EMA-100 has been important for forming a bottom. This suggests that bulls are still in charge and could aim for $116,000 to $117,000 if current support holds.
Still, the mood in the market is mixed, with some analysts warning of gloomy situations. Trader Roman stressed how important it is to keep the $112,000 support level. He warned that if it breaks, the $102,000 support level might be tested again, which could confirm a double top pattern. The discussion goes on about how long the present bull market will go. Some analysts say that October might be a key deadline for the trend to continue, while others, like Trump adviser David Bailey, say that institutional adoption will keep the market from going into another bear market for a few years.
Ethereum Price Prediction: $5,000 Next Target?
Ethereum set itself up for a possible breakthrough above $5,000 as the huge $5 billion options expiration on Friday gets closer. Bullish methods are very popular in the derivatives market. With a market worth of $557 billion, the second-biggest cryptocurrency is now one of the 30 largest traded assets in the world. It has gained 22% in the last 30 days. There is $2.75 billion in open interest in ETH call options, which is far more than the $2.25 billion in put contracts. This makes it more likely that prices will go higher.
The structure of the options market is quite good for Ethereum bulls. 71% of call options are at $4,600 or lower, while only 6% of put options are at $4,600 or above. This imbalance shows that negative traders didn’t see Ethereum’s August rise coming and are now in a bad position for the end of the month. Analysts say that even if ETH goes down to $4,400, optimistic methods will still win out at the end of the day. However, the final direction may rely on how the market feels after important earnings reports from tech companies like Nvidia and overall assessments of global economic development.
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