Daily Crypto Signals: Bitcoin Eyes $119K Breakout While Ethereum Defends $4.3K
US regulators provide coordinated framework for spot crypto trading as Bitcoin shows technical recovery signs and Ethereum network fees
Quick overview
- US regulators have clarified spot trading rules for cryptocurrencies, enhancing oversight by the SEC and CFTC.
- Bitcoin shows signs of recovery, with strong buyer support indicated by onchain data and exchange flow patterns.
- Ethereum's network fees surged by 30% weekly, making it the highest-grossing blockchain, while institutional adoption continues to grow.
- Despite a recent decline, Ethereum's price stability above $4,300 suggests potential for a rebound towards $5,000.
US regulators provide coordinated framework for spot crypto trading as Bitcoin BTC/USD shows technical recovery signs and Ethereum ETH/USD network fees surge 30% weekly, positioning both major cryptocurrencies for potential upward momentum despite recent market corrections.
Crypto Market Developments
This week, the cryptocurrency market saw a lot of changes in regulations and institutions. For example, US authorities made spot trading rules extremely clearer, which was really helpful. The SEC and CFTC made a joint statement saying that they would work together to oversee spot crypto trading in the US. They also made it clear that current law does not stop regulated exchanges from listing spot crypto products, even those that have leverage and margin features.
At the same time, institutional adoption is speeding up. Japanese Bitcoin investment firm Metaplanet got clearance from its shareholders to change how it raises money, which may lead to up to $3.7 billion in Bitcoin fundraising. There are still worries about security, though. In August, 16 different attacks stole $163 million worth of cryptocurrency, which is a 15% increase over July’s $142 million in losses, but a 47% decrease from the same time last year.
Bitcoin to Target $119,000 Next?
There are significant signals of a possible comeback bounce in Bitcoin’s spot market, and onchain data shows that buyers are highly sure of themselves. Glassnode’s Cost Basis Distribution demonstrates that Bitcoin’s spot activity is clustering tightly around recent price levels, which is very different from Ethereum’s sparser flows. This density usually means strong buyer support, and in the past, it has given prices more stable floors than just momentum from futures.
The bullish thesis is supported even more by exchange flow patterns. For example, Coinbase saw persistent netflow rises between August 25 and 31, right after its 30-day simple moving average hit its lowest point since early 2023. At the same time, Binance’s 30-day netflow hit highs not seen since July 2024, which is a level that has historically been linked to reaccumulation stages before new local highs.
Bitcoin showed strength by bouncing back from a low of $107,300 on Monday to break above $109,900 during Tuesday’s New York session. Lower timeframes are now showing bullish breakouts of structure. BTC has to close above $113,650 for a long-term rebound to signal a change in trend and possibly aim for liquidity levels at $116,300, $117,500, and $119,500. If it doesn’t, it might go down to the $100,000-$105,000 order block.
Can Ethereum’s Support Hold at $4,300?
Despite trade constraints, Ethereum’s network strength was impressive. Fees rose by 30% a week, making it the highest-grossing blockchain network, overtaking Tron. Ethereum made $16.3 million in fees, including layer-2 activity. This is more than double Solana’s $7.9 million. It also had its second-highest decentralized application fees since February 2022. August was very good, with Ethereum DApps bringing in $466 million in fees, a 36% increase from the previous month. The top contributors were Lido ($91.7 million), Uniswap ($91.2 million), and Aave ($82.9 million).
Institutional adoption is still growing, with companies adding 2 million ETH to their reserves in the last 30 days. This brings their total holdings to 4.71 million ETH, which is worth more than $20.2 billion. Even though derivatives markets are being careful with futures premiums around 5% and options skew maintaining neutral, Ethereum is in a good position because network activity is expanding and businesses are adopting it.
While ETH has declined 15% from its August 24 all-time high of $4,946, holding above $4,300 with futures open interest rising 26% to $58.5 billion suggests traders aren’t abandoning the asset, setting the stage for a potential push back toward $5,000 as network utilization and institutional deployment into Ethereum-based applications continues expanding.
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