Bitcoin sinks below $54K

Posted on August 5, 2024August 5, 2024 by Olumide Adesina

Bitcoin lost the $55K support level in the early hours of Monday. A dip under that level led to mass liquidation in the derivatives market. Coinglass data shows over $800 million in derivatives positions were liquidated in the crypto market for the day.

A widespread cryptocurrency selloff intensified in the early hours of Monday, sending ether, back to December-low pricing and bitcoin (BTC) to depths not seen since February.

Bitcoin has dropped by 12% for the day and lost more than 20% for the week. With ether (ETH) down 21% over the last day and 30% over the past week, the cryptocurrency has lost all of its gains this year and is down about 3% since January 1.
Appetite for risk moderated in the broader market. The Bank of Japan may have offset the current big fall in traditional and cryptocurrency markets when it raised its benchmark interest rate last week.

The country’s Nikkei stock index plummeted due to the monetary tightening. The Nikkei is currently down by over 15% over the last three sessions and 20% from a mid-July top, after falling another 6% early on Monday.

The Nasdaq fell more than 5% in the last two sessions of last week as the activity in Japan extended to the United States. Sunday night action has seen a 2.5 percent decline in Nasdaq futures.

A few were taken aback not only by the Bank of Japan’s rather surprising hawkishness last week but also by the U.S. Federal Reserve’s decision to seem hesitant about lowering rates in September, something almost everyone in the market had believed would happen.

The rates are at a multi-decade high of 5.25% to 5.50% while the US Federal Reserve continues to delay such a move. But Democratic Senator Elizabeth Warren pressured Fed Chair Jerome Powell to scrap his holiday plans and lower interest rates immediately rather than waiting until September when most analysts predict the move will occur.

Lower interest rates are typically seen as positive for riskier assets like cryptocurrencies. Because of this, some investors may have chosen to exit the cryptocurrency market due to uncertainty about the Fed’s next move.

Bitcoin turns into a bloodbath

Posted on August 3, 2024August 3, 2024 by Olumide Adesina

Bitcoin bulls struggle to hold the $60K line, as traders’ appetite for risk in the crypto market moderates considerably.

Bitcoin formed a huge red candle on the daily chart after losing about 6% on Friday.

The popular crypto asset is currently trading at $61.5K, as bull battle to retake the $62K mark following a low of $60.4K.

The bearish wave also hurt the altcoin market, which caused Ethereum to go below $3K, meme coins to plummet, and a wave of liquidations to sweep the market. This weekend has seen a massive collapse in the cryptocurrency market, wiping out about $300 million in leveraged trades on Friday.

A broadly bullish feeling was established by the recovery surge that preceded the FOMC meeting and the strong findings of the July CPI report. The feeling was further strengthened by the announcement that three significant US pension funds were interested in purchasing Bitcoin through the ETFs.

The FOMC meeting postponed the much-anticipated rate drop, with a decision possibly made in September. Following the FOMC meeting on August 2, enormous daily net flows began to turn pessimistic. All U.S. Spot Bitcoin ETFs had a negative $237.45 million net daily inflow. As a result, the huge withdrawals caused the cryptocurrency market to move catastrophically. Fidelity’s FBTC fund saw the biggest withdrawal. Grayscale’s GBTC at $45.95 million and Ark’s ARKB at $87.68 million were two more noteworthy outflows.

BlackRock’s IBIT fund on the NASDAQ saw the largest inflow with a net inflow of $42.81 million. Exchanges held 40% of the billions of Bitcoins that Mt. Gox paid to its creditors earlier this week. With minimal outside intervention, Bitcoin’s price stayed green, however, the sell-off wave that followed the distribution run and the $3 billion transfer to exchanges from the $9 billion outstanding prolonged selling pressure in the cryptocurrency space.

However, on Binance, the top traders in the BTC/USDT pair have a long-to-short ratio (Positions) of 1.8582. This ratio indicates that the top traders have almost 1.86 long holdings for every short position. Bitcoin and the cryptocurrency market will probably make a comeback soon.

Ethereum bulls lose $3K support line

Posted on August 3, 2024 by Olumide Adesina

Ethereum fell below the 200 Exponential falling Average (EMA), a sign that a downturn has begun. A technical indicator that may be used to identify both upward and downward trends in any asset is the 200 EMA. An asset is said to be in an uptrend if it is going above the 200 EMA in a longer time frame.

On the other hand, a downtrend is indicated if it is below the 200 EMA. Since November 2023, ETH has dropped below 200 EMA twice. This is the second instance.

Ethereum’s price is below $3K, down 4% today. Coinglass data showed the negative shift resulted in $80 million in liquidations over the previous day, with long and short liquidations totaling $71 million and $8.6 million, respectively.

About three small-bodied candlesticks were recorded by ETH before the price decline, suggesting that traders were unsure about what to do. However, bears are now outnumbering bulls due to the Federal Reserve’s decision to maintain interest rates at current levels and Genesis Trading’s recent settlement of debtors. Ethereum’s Long/Short Ratio decreased to 0.89 over the last day.

If ETH bounces off the key support level between $2,852 and $2,803, it may attempt to form a W. Since buyers have successfully defended this level on several occasions in the last four months, ETH might find support here and move up to test the resistance level at $3,731. However, ETH has to overcome the obstacle of surpassing the $3,357 mark.

The 50-day Simple Moving Average (SMA), is above the price of ETH on the daily chart and could serve as resistance at $3,357. A drop below the $2,803 support level will thwart the bullish argument.

Nevertheless, some upcoming difficulties in the cryptocurrency market could hinder ETH’s chances of recovery in August. The Mt. Gox BTC repayment could also add bearish pressures on the crypto market .

Arkham Intelligence data highlighted Genesis Trading moved roughly 32,256 BTC and 256,775 ETH worth $2.1 billion and $838 million to various addresses over the last three days while going through bankruptcy procedures to start paying back creditors.

In January 2023, the business declared bankruptcy due to misappropriation via the Gemini Earn scheme. The court permitted it to restitute $3 billion in customer assets as part of a bankruptcy liquidation plan.

Forex Signals Aug 2: Attention on the NFP As Employment Softens

Posted on August 2, 2024August 1, 2024 by Skerdian Meta

Yesterday, risk sentiment turned bearish and the Swiss franc outperformed, reaching its highest level since February as a preferred safe haven. Although some expected the yen to perform better in this risk-averse environment, it seems that the movement was more indicative of an oversold USD/JPY pair. The pair dropped 500 pips initially and paused after hitting 148.50 during the Asian session and after a retrace higher, it closed the day below 150.

Continue reading “Forex Signals Aug 2: Attention on the NFP As Employment Softens” →

Bitcoin Slumps Despite Whales Accumulation: Next Stop $60,000?

Posted on August 2, 2024 by Dalmas Ngetich

Bitcoin is in red, looking at the performance in the daily chart. Even though there were hopes of the coin arresting sellers, it all was brushed aside. Bulls stood no chance this week. After four days of lower lows, it appears that sellers are gradually cementing their position, reversing gains from July 14 through to 21. As things stand, traders can consider aligning themselves with the developing trend. This outlook will hold firm, especially if prices drop below $63,000 today.

At press time, Bitcoin is down 12% from $72,000 and may post even more losses by the close of today. Even so, the dominant trend is bullish from a top-down preview. The coin is down 1% in the past day, pushing losses through the last week to roughly 5%. As prices tank, engagement also rose to over $38 billion. This points to possible liquidation as bears forced prices lower, torching bulls’ positions.

The following Bitcoin news events are worth tracking:

On-chain data shows that bears have been persistent. Looking at weekly liquidation clusters and net taker volume, it seems like prices might fall some more. Analysts predict more losses throughout the next few weeks.
Amid the sell-off, whales are rapidly accumulating. Since the approval of spot ETFs in mid-January, issuers have bought nearly 300,000 BTC. This figure excludes Bitcoin held by corporates like MicroStrategy.

Bitcoin Price Analysis

[[BTC/USD]] is down at spot rates.

There were flashes of strength by the end of last week.

Prices rose to over $70,000 afterward. However, the failure of bulls to sustain prices allowed bears to push on, cementing the importance of the round number.

From the daily chart, traders might look to short, aligning with the developing trend, especially if prices are capped below $63,000.

The immediate target for sellers will be the 61.8% Fibonacci retracement level of the July 2024 range at $60,000.

If there is a recovery, Bitcoin might edge higher, breaking $66,000.

Even so, clearer entries will be above $70,000.

Ethereum Drops 20%: ETH Finds Roadblock at $3,500, Will Spot ETFs Rescue Bulls?

Posted on August 2, 2024 by Dalmas Ngetich

Ethereum followed Bitcoin, looking at the formation in the daily chart. After the consolidation above $3,300 for the better part of this week, the drop of August 1 crashed bulls. As it is, the bar is a confirmation of the July 24 and 25 bears, signaling weakness. A follow-through of yesterday’s losses means that Ethereum’s trends are below $3,000, opening up the second most valuable coin to $2,800. This is a retest of recent swing lows of May and July 2024. Even so, optimism remains high, with most analysts viewing this drop as an opportunity for bulls to accumulate.

The sell-off across the crypto scene means Ethereum is in red. After the swing high to around $3,900 in May, the coin is now down 20%. In the past day, ETH shrunk by 1%, pushing losses to over 3% in the previous week. The dump was with rising trading volume which now stands at over $17 billion. If the coin crashes over the weekend, the reaction at $2,800 will be vital in shaping the short to medium-term trajectory.

Traders are closely monitoring the following Ethereum news developments:

Spot Ethereum ETFs are live, but after days of outflows, July ended strongly. According to trackers, BlackRock bought $118 million of ETH as the product saw inflows for the first time.
Despite free-falling prices, ETH is once more retesting a critical resistance trend line. If there is a recovery over the weekend, bulls will likely stretch gains in the coming sessions.

Ethereum Price Analysis

[[ETH/USD]] is under immense selling pressure after the breakout of August 1.

Technically, ETH is bullish, but in the short term, sellers have the upper hand.

The zone between $2,800 and $3,000 is crucial, and buyers must absorb selling pressure to maintain the uptrend.

If bears fail to flow in today, losses of August 1 might become climactic. In that case, aggressive buyers might consider buying the dips.

However, a conservative trader might wait for a clean break above $3,500 or below $2,800.

Losses below $2,800 might push Ethereum to $2,500.

Conversely, a bounce above the local resistance at $3,500 might fan demand, lifting prices to over $4,000.

XRP Flash Crashes: Ripple Tokenizing US Treasuries, Will $0.55 Hold?

Posted on August 2, 2024 by Dalmas Ngetich

XRP wasn’t spared the sell-off, looking at the formation in the daily chart. After the pin bar at the end of July, the follow-through on August 1 is putting brakes on optimistic bulls targeting $0.74. The wide-ranging bar of August 1, combined with the rising volume pushing prices below the local consolidation, might mean the short-term uptrend is over. Even so, buyers still have the upper hand from a top-down preview. If the downtrend is prevented today and trading volume rises as buyers slow down the selling momentum, XRP might resume the leg up.

The XRP uptrend is facing intense resistance at around the $0.66 zone. The retest of this level on July 31 and yesterday’s drop could anchor aggressive sellers targeting $0.55 or lower. So far, the coin is down nearly 6% in 24 hours while shedding 5% in the previous week. The drop in XRP prices on August 1 was with rising volume, standing at $1.7 billion.

Traders are keeping an eye on the following trending XRP and Ripple news:

Ripple, the blockchain company, said it is introducing a tokenized version of Treasuries on the XRP Ledger following its partnership with OpenEden. The product would allow investors to invest in a transparent and cheap platform. This is similar to what BlackRock offers on Ethereum.
Despite XRP rising and Ripple striking key partners, traders are generally neutral, with some quarters fearful. Yesterday, the United States SEC canceled the closed-door meeting it had planned. Rumors are the regulator has closed its case against Ripple and will settle, not seeking the $2 billion penalty.

XRP Price Analysis

At spot rates, [[XRP/USD]] remains in an uptrend.

Even so, from the daily chart, the strong rejection of August 1 punctures the momentum.

The immediate support is at $0.55.

If there is a confirmation of yesterday’s losses, pushing prices below this level, XRP might dump to $0.50 in a correction.

Meanwhile, aggressive XRP traders can look to buy the dip, expecting prices to turn around and breach $0.62 in alignment with the recent dominant trend.

This preview holds if XRP remains above $0.55.

Risk-on traders can wait to see what happens next.

A strong rejection of recent losses, yanking prices above $0.62 could ignite demand.

Conversely, any sell-off below $0.55 might offer entries targeting $0.50 and even July 2024 lows.

Bitcoin Shrinks: Is This The Spring Before $70,000?

Posted on August 1, 2024 by Dalmas Ngetich

Bitcoin fell yesterday, meaning the downtrend from early this week remains. Thus far, buyers have the upper hand, at least viewing price action from a top-down preview. Bulls will likely stretch gains to fresh highs if there is a close above the round number at $70,000.

So far, Bitcoin is down 3% on the last day but stable in the previous week. Even so, the average trading volume, a measure of engagement, is decent at just $35 billion. In the coming days, traders should closely watch how prices react at key resistance and support levels. A breakout in either direction will draw more players.

With Bitcoin stabilizing, traders are keeping a close eye on the following trending news:

Despite the cool-off seen today, what’s impressive to note is that the coin is attracting more new investors faster than the post-FTX recovery. From on-chain data, when prices rose from $57,000 to $69,000, there were 3% more new investors.
Even though the frequency of whale transfers has subsided over the months, at least looking at the averages over the last 18 months, it remains higher. The average monthly transfer volume stood at between 700 and 1 million BTC.

Bitcoin Price Analysis

[[BTC/USD]] remains in an uptrend from a top-down preview, but cracks are emerging, as seen in the formation in the past few trading days.

As long as prices remain stuck between $63,000 and $70,000, conservative traders can wait for a decent breakout in either direction.

For now, bulls have the upper hand from a top-down preview.

As such, aggressive traders can load the dips, buying on every attempt lower, targeting $70,000 in the short term.

Any confirmation of the buyers of the July 14 to 21 range could see Bitcoin erupt to $72,000.

Ethereum Losses $3,300 Amid Falling Trading Volume: Reason To Worry?

Posted on August 1, 2024 by Dalmas Ngetich

Ethereum is under pressure at press time. Even though the uptrend remains, at least reading from how prices have been reacting in recent days, conservative traders should be cautious. As it is, ETH bulls must maintain the support at $3,000. However, for buyers to truly shine, a decent, high volume close above $3,500 will be crucial. Possible drivers feeding this upside momentum would be inflows to spot ETFs and the changing political environment favoring cryptocurrencies.

As ETH comes under fire, the coin is firmly in second, tracking Bitcoin. However, as the coin falls, it is down 5% in 24 hours but largely stable in the past week. As prices slide, the average trading volume is unexpectedly low, at just $18 billion.

Amid the optimism, traders are keeping tabs on the following trending Ethereum news:

A week after the launch of spot Ethereum ETFs, it seems that the battle for dominance will pit BlackRock and Bitwise. The two continue to attract investors mainly due to their relatively low fees. Meanwhile, ETHE continues to see outflows.
Sentiment was dumped yesterday after a dormant whale woke up after nine years and sent coins to a new address. It remains to be seen whether the whale will sell. So far, the entity controls 2,000 ETH earned from the ICO.

Ethereum Price Analysis

[[ETH/USD]] is falling at spot rates, looking at the formation in the daily chart.

Even though buyers are hopeful, cracks are forming after the coin fell below $3,300.

The confidence surrounding the success of spot Ethereum ETFs is vital, but this has not revived demand and lifted the coin higher.

More conservatively, there will be opportunities to ride the trend if buyers conquer $3,500.

If, on the other hand, ETH dumps below $3,000, the coin will rapidly retest $2,800 and July 2024 lows.

XRP Drops: United States SEC Losing Streak, Will This Pump Ripple To $1?

Posted on August 1, 2024 by Dalmas Ngetich

XRP is one of the top performers despite recent losses. After days of consolidation after the flash crash in April, prices rebounded sharply in July. If buyers sustain this momentum, there could be more room for growth in the short to medium term. So far, Ripple has impressively sustained $0.55 as the primary support. If fundamentals favor the coin, XRP would easily fly to fresh highs in a buy-trend continuation formation.

As XRP cools off, the uptrend remains from a top-down preview. Over the last day, the coin has been down 6% but stable over the last week. If the uptrend continues today, trading volume will swell further, possibly increasing from the $2 billion seen yesterday.

XRP and Ripple traders are watching the following news events:

The printout that saw XRP crack $0.62 also meant the coin broke above a multi-year resistance trend line. This is crucial. Analysts now think not only will it break $1 but also roar to as high as $150 in a welcomed buy trend continuation pattern.
The United States SEC is on a losing streak, drawing even more criticism from the Ripple CEO, Brad Garlinghouse. After the regulator’s request to withdraw their classification of ADA and SOL, among other coins, as securities, the CEO said it goes on to show the hypocrisy of the agency.

XRP Price Analysis

[[XRP/USD]] is firm despite the recent dip.

As XRP cements its position at sixth, aggressive traders can also look to load up the dips.

The immediate support stands at $0.55 on the lower end.

Currently, traders can consider buying as long as prices trend inside the July 30 and 31 bars.

Their short-term targets would be $0.66 and $0.74. If there is a deluge of demand, XRP can easily reach $1.

Any drop below $0.55 cancels this preview.