Daily Crypto Signals: Bitcoin Faces Correction, Ethereum ETFs Drive Record Institutional Inflows
Bitcoin dropped to an 11-day low of $114,755 amid profit-taking and liquidity sweeps, while Ethereum's record ETF inflows of 649,000 ETH
Quick overview
- Bitcoin dropped to an 11-day low of $114,755 due to profit-taking and liquidity sweeps, raising concerns about further declines.
- Ethereum experienced record ETF inflows of 649,000 ETH, indicating strong institutional demand despite short-term price fluctuations.
- The NFT sector saw a significant loss of $1.2 billion in value, contributing to a decrease in total market capitalization.
- Thailand is launching a regulatory sandbox for tourists to exchange cryptocurrencies, aiming to boost crypto adoption in the tourism sector.
Bitcoin BTC/USD dropped to an 11-day low of $114,755 amid profit-taking and liquidity sweeps, while Ethereum’s ETH/USD record ETF inflows of 649,000 ETH signal sustained institutional demand despite short-term consolidation between $3,900-$4,400.
Crypto Market Developments
This week, the cryptocurrency market was very volatile. Bitcoin dropped from its previous all-time high of $124,474, while Ethereum continued to get a lot of institutional investment through spot ETFs. BitMine Immersion Technologies is now the biggest company in the world that owns Ether, with $6.6 billion worth of it. However, its price has dropped 14% in the last week. The NFT sector lost $1.2 billion in value as prices fell, bringing the total market capitalization down from $9.3 billion to $8.1 billion.
Thailand, on the other hand, said it will start a regulatory sandbox dubbed TouristDigiPay that would let tourists change their cryptocurrencies into local currency for online payments. This project is a big step toward making crypto more popular in the tourism industry, which is what the government wants to do to get more foreign visitors after numbers have been going down.
Bitcoin Tests Support at $114,000
Bitcoin’s recent drop from its all-time high of $124,474 to a temporary low of $114,755 surprised a lot of traders and caused a lot of long liquidations across the market. The drop of 6.72% below $115,000 was bigger than most analysts thought it would be, which has led to worry about a further drop under the $110,000 mark. However, data from the market suggests that this retreat may be a healthy correction instead of the conclusion of the bull run.
Most of the selling was because short-term holders wanted to take their profits and there weren’t many buyers on the weekends. Digital asset treasuries still had a lot of institutional demand during the week, but the market was open to order flow imbalances on weekends when Wall Street wasn’t active. Even if there was a fall, certain signs point to a possible recovery, such as more open interest around liquidation zones and sustained interest from institutions in buying. Analysts say that Bitcoin might hit $140,000 to $150,000 by the end of the year. However, the RSI displays negative divergence patterns that imply it could consolidate more, so be careful.
Ethereum’s Institutional Adoption on the Rise
Despite short-term price fluctuations, Ethereum saw a lot of institutional adoption momentum, with spot ETFs seeing their greatest weekly inflows ever at 649,000 ETH. This institutional demand has pushed Ether up more than 50% in the previous month, pushing it close to its all-time high of almost $4,870 in November 2021. The fact that ETFs have brought in more than $11 billion this year shows that institutions are becoming more confident in Ethereum’s long-term future.
Ethereum is in a tough liquidity battle between the $3,900 support level and the $4,400 resistance level. After closing its biggest weekly candle in over four years, ETH is now stabilizing. Traders are monitoring for a possible retest of the $3,900 zone before a possible surge into new all-time highs. The four-hour RSI is still below 50, which means there is still potential for it to go down before it becomes too low.
Long-term forecasts are still positive, with some analysts saying that prices might rise by 100% to $8,000. However, this might require a constructive drop to the $3,000-$3,500 range to get rid of early long holdings and make it easier for a larger recovery to happen.
Top Altcoins to Watch Today
- XRP XRP/USD: Currently testing the 50-day SMA at $2.94 as crucial support after failing to reclaim the 20-day EMA at $3.10. A bounce from current levels could target the downtrend line, with potential upside to $3.40 and $3.66 if resistance breaks.
- Solana SOL/USD: Finding support at the 20-day EMA around $182 after bouncing from $185. Bulls are targeting a break above $210 resistance, which could open the path toward $240. Watch for the uptrend line as key support if selling pressure continues.
- BNB BNB/USD: Facing resistance at $861 with potential pullback to the 20-day EMA at $808. A successful defense of this level could enable a push toward the psychological $1,000 level, while failure might establish a trading range between $732-$861.
- Cardano ADA/USD: Maintaining above $0.90 support but struggling with $1.02 resistance. The upsloping moving averages favor buyers, though negative RSI divergence suggests weakening momentum. A break above $1.02 could target $1.17.
- Chainlink LINK/USD: In an uptrend but facing resistance at $27. The negative RSI divergence indicates weakening bullish momentum, with key support at the 20-day EMA around $21.13. A successful break above $27 could propel prices toward $31.
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