Daily Crypto Signals: Bitcoin Stabilizes Above $90K, Ethereum Faces Technical Headwinds
Bitcoin has reclaimed the $90,000 level following a brief dip to seven-month lows around $81,000, while Ethereum trades above $3,000 amid
Quick overview
- Bitcoin has recovered to $90,000 after a dip to $81,000, while Ethereum remains above $3,000 amidst mixed market signals.
- Upbit, South Korea's largest exchange, suspended operations after losing $36 million in a Solana network breach, while the Balancer community proposed a distribution plan for $8 million recovered from its own hack.
- Despite Bitcoin's recent recovery, technical indicators suggest potential bearish momentum, with predictions for its year-end price being adjusted downwards.
- Ethereum's futures market shows increased trader interest, with expectations of volatility rising, while its ETFs have seen significant inflows.
Bitcoin BTC/USD has reclaimed the $90,000 level following a brief dip to seven-month lows around $81,000, while Ethereum ETH/USD trades above $3,000 amid mixed market signals. South Korea’s largest exchange Upbit suspended operations after losing approximately $36 million in a Solana SOL/USD network hot wallet breach, and the Balancer community proposed a distribution plan for $8 million recovered from its November hack.
Crypto Market Developments
The crypto market was strong this week after being somewhat volatile in November. Bitcoin rose more than 3.3% to $90,000, while the rest of the market is still dealing with security issues and contradictory feelings from institutions.
On November 27, Upbit, South Korea’s largest cryptocurrency exchange, found out that almost $36 million worth of Solana-based assets had been taken without permission. This led to an immediate halt of all deposits and withdrawals. The hack happened at the same time that Upbit’s parent company Dunamu and internet behemoth Naver announced a $10 billion deal to buy the company. The timing was bad because it happened exactly six years after Upbit’s 2019 security breach, when North Korean hackers stole 342,000 ETH worth almost $50 million.
Upbit said that the breach only affected its hot wallet and that its cold wallet reserves were safe. It also promised to fully repay affected consumers. The exchange was able to freeze almost $8.2 million worth of LAYER tokens that were among the stolen goods.
The Balancer protocol community, on the other hand, took efforts toward a remedy after its own security breach. After the protocol’s $116 million attack in November, two members of the community came up with a scheme for how to distribute the $8 million that was recovered by white hat hackers and internal rescue teams. The idea says that reimbursements should not be socialized. Instead, they should only go to the liquidity pools that were harmed, and they should be paid in-kind to eliminate price differences between different digital assets.
Coordinated emergency operations saved or recovered $45.7 million of the $121.1 million that was taken, which is a 38% mitigation rate. StakeWise, a platform for liquid staking, got back about $20 million by taking advantage of a flaw in its smart contract ownership structure. It burned tokens in the hacker’s wallet and made the same amount in its own wallets.
Bitcoin Holds $91,000, What’s Next?
Bitcoin (BTC) fell to roughly $88,000, which was a seven-month low and a drop of more than 20% in 30 days. However, it has now risen back to the $90,000 level. The recovery shows strength, but technical indicators reveal that the 50-day EMA has crossed below the 200-day EMA, creating a death cross pattern that suggests bearish momentum in the long run. Bitcoin ETFs lost $151 million on Monday, even though they had gained almost $313 million in the two days before that.
Tom Lee, the chair of BitMine, has changed his widely shared prediction that Bitcoin will reach $250,000 before the end of the year. He now says that it is only a “maybe” that Bitcoin will reach its all-time high of $125,100 in October before the end of the year. Lee has officially backed down from his bold prediction for the first time, but he still thinks it’s “very likely” that Bitcoin will trade above $100,000 by the end of the year. Even if the projection has been lowered, Lee is still hopeful about the near future. He points out that Bitcoin’s best 10 days in 2024 brought in a total of 52% return.
Can Ethereum Rally to $3,400?
Ethereum (ETH) is trading at $3,024.18, which is more over $3,000, and it is acting differently from Bitcoin in futures markets. The futures-to-spot ratio for Ether on Binance has shot up to 6.84, its highest level in the fourth quarter. This is a big jump from Bitcoin’s 4 and Solana’s 4.3. This is a clear change in direction, with traders increasingly favoring leveraged exposure. This suggests that expectations of ETH-specific volatility are rising. Bitcoin’s open interest has gone down over the past two weeks, but Ether’s has stayed the same. This means that people in the market are moving their risk capital into Ethereum’s higher-beta potential.
Technical indicators are sending forth mixed indications. The 50-day EMA crossed below the 200-day EMA, making a death cross pattern. However, Ethereum ETFs saw roughly $97 million in inflows on Monday and $79 million on Tuesday, while Bitcoin saw withdrawals. Traders are still split on which way to go. Bulls are looking for support at $2,800 and a surge into $3,390 if critical levels turn into support. As Bitcoin’s supremacy weakens, some analysts think there might be a rally in December that pushes prices up toward the $3,300s.
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