Bitcoin and Ethereum Suffers Price Rejection as Crypto Market Sees Rebound

Bitcoin Fall and Recovery: What the Future Holds

Bitcoin took the hardest plunge as Elon Musk’s criticisms and China’s ban stirred market bears to sell-off. In the past 7 days, BTC traded at a high of $43,546.12 to a low of $30,681.50. The cryptocurrency has recorded a bit of balancing after Musk revealed he had a meeting with North American miners with respect to the embrace of green energy mining options for the crypto space. At present, BTC is changing hands at $36837.8, down 2.28% in the past 24 hours according to the CEX.IO price feed.

Bitcoin’s downward price trend is exhibiting a high level of volatility with a notable rejection at the $40,000 price level. Should the buy-up around the current price range be intensified, we will see the price shoot beyond $40,000 in the short term as the hurdle to reclaim the ATH price in the long term will be intensified.

Ethereum Struggling to Maintain Support at $2,400

Ethereum got its fair share of the woes suffered by Bitcoin, however, it is currently trading in a recovery zone at a price of $2427.24 with a gain of 3.02% in the trailing 24 hours.

Ethereum’s ambition is to break the $2,800 resistance point and to return its short-term Moving Average back to its bullish trend. Should Ethereum break this point, a surge that will launch the price above $3,000 may be recorded.

Konstantin Anissimov, Executive Director at CEX.IO

Bitcoin Fights for Breakout as Ethereum Sees Correction from its ATH

The momentum for Ethereum has been high over the past few days. The coin recorded an ATH above $3,523.59 yesterday and gave Bitcoin bulls the needed nudge to push the coin’s price to a new horizon. Together, Bitcoin and Ethereum dominate the $2.29 trillion global crypto market cap by 61.9%. A look at their current price movers will showcase which project contributes more to this combined cap weighting.

Bitcoin’s Retarded Growth Casts Doubt on its Market Leadership

For the past decade, Bitcoin has been seen as the undisputed leader of the global crypto market, wielding a massive influence over the space. This recognition is, however, fading away as the coin has not made any move close to its ATH of $64,500 for about 3 weeks now. For several reasons ranging from the Xinjiang mining zone blackout to fears of increased capital gains tax has contributed to keeping the premier cryptocurrency well below the $60,000 psychological level.

At the time of writing, BTC is down by 0.25% to $55612.2 according to data from CEX.IO price feeds.

The BTC-USD 4H Chart above shows the market is at a point of indecision with a likely overbearing influence from the bulls. A continuous push up across the signal line can send price toward the upper region of the Bollinger Band, in a bid to retest the $60,000 price levels. Should the bulls succeed in stabilizing price above this level, Bitcoin may regain buyers’ confidence to end Q2 at a price valuation of $80,000 per coin.

Ethereum Charting a New Course for itself

Ethereum has almost completely broken off its correlation with BTC and is now charting a new path for itself. Despite its current price of $3370.33 or 1.69% dip in the past 24 hours falling below its ATH above $3500, ETH is still outpacing BTC on the weekly gain level by 24.51% to 0.46% respectively.

The latest short squeeze on derivatives exchanges forced the new ATH, fueled by the growing institutional manager’s inflow into the asset. While these may be intermittent, investors are very bullish on the future prospect of the network per the EIP 1559 and ETH 2.0 potential rollout.

Per the short term SMAs which ETH price is currently trading above, the bullish momentum is heightened, and while the coin has beaten its Q2 target of $3,000, a move toward the Q4 target above $4,900 is now being anticipated.

For both BTC and ETH, intermittent price reversals may be experienced before the targets are met.

Konstantin Anissimov, Executive Director at CEX.IO

Bitcoin and Ethereum Price Seeks to Recover Lost Grounds After Market’s Flash Crash

Both Bitcoin and Ethereum traded at a weekly low of $47,159.49, and $2,060.14 respectively. These price levels were surreal as prices had not gone that low since early March.

With the market held down in the oversold region for days, the news that America’s oldest wine brand Acker now accepts Bitcoin and Ethereum payments is perhaps adding to fuel the current bullish market outlook.

Bitcoin Fighting the $54,000 Resistance Level

Despite its 2.57% gain in the past 24 hours to $54749.8 according to data from CEX.IO price feed, Bitcoin bulls are coming off as weary of the $54,000 resistance level. The top for the digital currency to reclaim is its all-time high of $64,863.10 attained close to two weeks ago, however, the fear of rejection is slowing the ambitious push beyond the current levels.

The Technical indicators including the Moving Average and the Chaikin Money Flow are both not oblivion of the regained strides on the BTC/USD 4 hour chart. While the resurgence is obvious, Bitcoin still has a lot of push to erode the downward slide of the 9-day Moving Average. A consistent move upward will return Bitcoin’s price back to $60,000 in the short term.

Ethereum Pushes for New Price Zones

Ethereum’s recovery has been daunting, gaining 2.24% to trade at $2544.83. Retail sentiments remain high, while on-chain data reveals investors are not giving up on the future potentials of the Proof-of-Stake (PoS) network as total deposits top $9 billion.

At present, ETH is trading above its 6 and 20-day Moving Averages, making a case for a further upsurge in the near term. With the ATH of $2,641.09 the target in the short term, Ethereum bulls are potentially aiming for a new price territory above $3,000 in the medium to long term.

Konstantin Anisimov, Executive Director at CEX.IO

Monthly Recap: Bitcoin and Ethereum Post Over 30% Gains in March

Bitcoin Continues its Parabolic Advance Throughout March

Such an impressive uptrend was fueled by news of further adoption by some of the largest financial institutions worldwide.

Citi declared that Bitcoin could become the “currency of choice” for international trade in a few years. The U.S. banking giant has released a 108-page document at the beginning of the month titled “Bitcoin: At The Tipping Point,” arguing that BTC is the “North Star” that acts as a guiding light for decentralized finance and other areas of the blockchain space.

Along the same lines, the Director of Fidelity’s Global Macro Jurrien Timmer said that Bitcoin has evolved as a form of digital gold. According to the analyst, BTC will become scarcer than the precious metal, becoming a “more convex form of gold.” Weighing the pros and cons of investing in the digital asset, Timmer stated that it might make “one component of the bond side of a 60/40 stock/bond portfolio.”

The acknowledgment that Bitcoin is now part of the global financial system from such major corporations seems to have been the catalyst that pushed prices to a new all-time high of $61,800 in mid-March.

Nonetheless, the rising price action was quickly spoiled by a senior government official in India who stated that the nation would almost certainly ban cryptocurrency. The news reignited fear among crypto investors in the South Asian country since holding cryptocurrencies was also going to be a criminal offense punishable by up to 10 years imprisonment.

As investors in India began to panic sell their holding, Bitcoin took an 18.50% nosedive to hit a low of $50,500 on March 25th. But some market participants took advantage of the downswing to add more tokens to their portfolios at a discount, with American citizens spending a significant portion of their U.S. stimulus checks into BTC.

The bellwether cryptocurrency closed the month on news that Morgan Stanley was planning to offer its richest customers the option to invest in Bitcoin in high-risk funds, allowing prices to recover from the Indian sell-off.

Ethereum Miners Threaten to Disrupt the Network, But Tensions Eased

Like a rising tide that lifts all boats, the global recognition that Bitcoin achieved throughout March also helped Ethereum surge. The second-largest cryptocurrency by market capitalization rose from a monthly open of $1,420 to close the first quarter of the year at a high of $1,909, according to CEX.IO’s exchange rate. ETH investors generated a monthly profit of nearly 35%.

Ether kicked off the month on news that Amazon Managed Blockchain added support for the smart contracts blockchain, allowing users to set up Ethereum nodes and join the network via Amazon’s blockchain service.

Although the news was well-received by software developers, a proposal to improve Ethereum transaction costs took center stage.

Ether’s core developers agreed to add the blockchain’s crucial EIP-1559 to the London fork in July. The idea behind the improvement proposals was to burn a portion of the gas fees on every transaction to reduce ETH supply. EIP-1559 could be thought of as an “ETH buyback,” making Ethereum a deflationary asset

Certain miners publicly opposed the update since it would hurt their source of revenue. For instance, SparkPool and Bitfly, two of Ethereum’s key mining pools, shared their concerns on Twitter, stating that they were “sad to see many people only care about price now.” As a result, the hashtag “#stopeip1559” gained a significant amount of support.

While several community members threatened to move their hashrate to Ethermine for 51 hours, Ethereum creator Vitalik Buterin vowed for a more immediate merge of Ethereum 1.0 and Ethereum 2.0. The merge would mark a more thorough transition to proof-of-stake and prevent miners from attacking the network.

As tensions heated up between miners and Ethereum developers, market participants became concerned over the network’s stability. The potential Indian ban on crypto also served as fuel for a sell-off that saw ETH drop by nearly 22% to hit a low of $1,550 on March 24th.

Thankfully, Ethereum layer 2 solution Hermez Network launched on mainnet promising to alleviate some of the well-documented congestion issues. Through ZK-Rollup technology, it was suggested that ETH would process vast amounts of transactions, moving billions of dollars worth of digital assets.

The announcement was well received by the crypto community alongside Visa’s decision to allow digital currency payments settling directly on the Ethereum blockchain. Such positive developments allow Ether to recover the losses incurred and close the month in the greed.

The Bull Run Isn’t Over Yet

April has historically been the most bullish month for Bitcoin and Ethereum. Price data reveals a 51% average gain for both cryptocurrencies during the fourth month of the year. More importantly, Coinbase’s upcoming listing on the NASDAQ could significantly affect prices since it will bring digital assets to a new realm of investors.

Market participants have already been placing their bets for the coming weeks. With $2 billion in open interest and a 0.79 put/call ratio, speculators forecast BTC will reach a price of $80,000 before the end of the month. Meanwhile, Ethereum’s technical indicators predict a nearly 40% advance towards a new all-time high of $2,500 or higher.

Konstantin Anissimov, Executive Director at CEX.IO

Bitcoin Resurgence Continues as Ethereum Leads Per Rate of Gain

The Bitcoin resurgence received a sustained momentum as the bulls anticipated to stir a push above the $60,000 resistance mark, and while this price level is currently being rejected by the bears, the prospective weekly high may veer above the level. Ethereum on the other hand traded at its weekly high at the earlier hours of today riding on the bullish news about the network being adopted by online payments services provider Visa Inc.

In all, the influence of both Bitcoin and Ethereum in keeping the global cryptocurrency market capitalization on the path of gains is evident. The global market cap is up 2.74% to $1.87 trillion. Today’s piece highlights new trends in the market and how the technicals are backing the ongoing price spikes.

Bitcoin Accumulated is Undeterred

The question of whether Bitcoin is a legitimate digital asset to hold is no longer a common one in today’s cryptospace as the cryptocurrency has proven itself sustainable over time. The latest weekly on-chain data from crypto analytics provider Glassnode suggests that the market is seeing the emergence of new crypto HODLers.

Per the data, about 25% of all Bitcoin being traded in the past 6 months are from new coins, as older investors appear to be heralding a longer-term holding policy. Current data also suggests that the outflow of assets away from these exchanges is also a positive signal that suggests accumulation. The sustenance of this trend will stir scarcity which will eventually impact the price of the coin.

At the time of writing, Bitcoin is up 2.39% to $59271.1, a trend that suggests a breakout through the $60,000 psychological level is imminent. Consider the BTC-USD 4-hour chart on TradingView.

The Chaikin Money Flow indicator aligns with the Relative Strength Index and showcases the bullish breakout of Bitcoin. In the past 24 hour period, Bitcoin bulls have not just sustained price around the $58,000 support level, they are unrelenting in their desire to push the price above the $60,000 resistance.

The fight for control can be seen at the top as the tiny bearish candlestick at the tail end of the chart indicates the drawback from the market bears. As a dynamic market, the bearish pressures are not necessarily required to align with those of the buyers, as the dominant forces per time will gain control, and in this case, the bears.

The volatilities around the $59,000 level are high and should the bullish forces stretch out the price range north of these levels, a $62,000 top will be the next stop. Should there be any correction, A bounce back around $58,000 can be anticipated.

Ethereum Leading Gains as it Becomes Visa’s Preferred Network

Ethereum is seeing its best price-performance in days as it is remarkably leading Bitcoin per its rate of gain. The cryptocurrency is trading with a 3.14% surge to $1838.06 and its plans to form a top at $1,900 is currently being vehemently resisted by the bears.

San Francisco-based payment services provider, Visa Inc has revealed its plans to integrate the payment infrastructure to let cash transactions be settled using the Ethereum network. This news is not being taken lightly by the buyers as a resumption in accumulation helped push the coin to a new weekly high today.

Per the ETH-USD 4-hour chart, as seen on TradingView, the cryptocurrency is forming a negative surge away from the upper bands of the Donchian Channel. While the Awesome Oscillator remains steadfastly bullish, the MACD line which previously attempted to make a bearish crossover on March 29th is currently trending in the buy-up range.

There are huge expectations on Ethereum to forge its own bullish course irrespective of Bitcoin, riding on the Visa sentiments. However, while the market anticipates a surge toward the $1,900 psychological level, a bigger target for Ethereum is to cross the major resistance at $2,000. Should the bulls fail at stirring this price sojourn, a sell-off might ultimately reverse the gains, pulling the price back down to the $1,500 support zone.

Konstantin Anissimov, Executive Director at CEX.IO

Weekly Recap: Bitcoin and Ethereum Fall in Tandem

Bitcoin took investors by surprise on March 13th after surging to a new all-time high of $61,800. As late buyers began to enter the market in anticipation of higher highs, the Tom DeMark (TD) Sequential indicator sensed that BTC’s uptrend was about to reach exhaustion. This technical index presented a sell signal on the 4-hour chart projecting that a steep correction was underway.

Reuters’s interview with a senior government official in India who stated that the nation would almost certainly ban cryptocurrencies seems to have been the pullback’s catalyst. The report reignited fear among crypto enthusiasts in that nation as the new bill would make holding any digital assets a criminal offense punishable by up to 10 years imprisonment.

Following the news on India’s crypto ban, analytics firm CryptoQuant suggested over $1 billion worth of Bitcoin were sent to a US-based exchange. Such a massive transfer of tokens to a single exchange could have had the ability to tank BTC’s market value and affect the cryptocurrency industry’s stability.

As emotions ran high, many of the so-called “weak hands” panic sold their holdings, leading to a significant decline. Bitcoin dropped by nearly 12% from Monday’s open, March 15th, of $60,450 to hit a low of $53,180, according to CEX.IO’s exchange rate.

Despite the chaotic beginning of the week, a new wave of positive developments came next, helping Bitcoin recover some of the losses incurred.

Morgan Stanley announced that it would offer a selection of its clients’ exposure to Bitcoin. The American multinational investment bank is also reportedly in conversations to purchase one of Koreas’ largest cryptocurrency exchanges. Moreover, SBI Crypto, a subsidiary of SBI Holdings, revealed that its mining pool service would allow miners to earn from collaborating. At the same time, Chinese tech giant Meitu added 386 BTC and 16,000 ETH to its portfolio.

Now that a Blomberg survey revealed that between $10 billion to $40 billion from the new US stimulus checks could flow into cryptocurrencies, investors seem to have regained confidence in Bitcoin. Prices were able to bounce back and close the week at $58,135.

Although Bitcoin holders incurred a weekly loss of 4%, momentum is building for significant gains to come over the next few weeks.

Ethereum Closes the Week in the Red as Miners Rebel

India’s crypto ban also seems to have had a big impact on Ethereum’s price. The second-largest cryptocurrency by market capitalization took a 10% nosedive after opening the weekly trading session at $1,885, going as low as $1,714, according to CEX.IO’s exchange rate. Although this support level helped prevent Ether from a steeper decline, uncertainty mounts around this altcoin’s future.

Several Ethereum miners plan to move their hashrate to Ethermine for 51 hours on April 1st to protest against EIP-1559. This protocol update introduces a fee burn “ETH buyback” mechanism, which affects the revenue miners can earn.

Ether miners’ ability to coordinate such type of action put in question the network’s decentralization. But it also allowed Ethereum founder Vitalik Buterin and developer Danny Ryan to agree to push ETH 2.0’s Phase 1.5 forward. The move will help the blockchain achieve the scalability it desperately needs and make miners obsolete.

Buterin got immediate support from ConsenSys, which reported on the update in a blog post titled “Proof of Stake Is Coming To Ethereum Sooner Than We Think.”

Since Phase 1.5 is not set in stone yet, Matt Garnet argued that there could be other ways to reduce transaction fees without rushing things. The Ethereum developer created a proposal that could improve support for transaction batching. While it remains uncertain whether EIP-3074 will be accepted in the next protocol upgrade, it shows that the community is actively looking for solutions that do not have a serious impact on the network’s stability.

Such commitment was well perceived by market participants, who gave Ether a vote of confidence. As buy orders piled up, ETH’s market value rose by 5.80% to close Friday, March 19th, at $1,807. Thus, investors incurred a weekly loss of 4.10%.

Sitting on Top of Stable Support

Transaction history shows that both Bitcoin and Ethereum sit on top of stable support. Nearly 830,000 addresses had previously purchased 490,000 BTC at $55,000. Meanwhile, roughly 1 million addresses are holding more than 14 million ETH, around $1,770.

Bitcoin and Ether will likely continue trending upward and may march to new all-time highs as long as these crucial interest areas hold. However, failing to hold above these key support levels could be catastrophic for the top two cryptocurrencies by market capitalization. A spike in sell orders could see BTC dive to $50,000 and ETH to $1,500.

Konstantin Anissimov, Executive Director at CEX.IO

Weekly Recap: Bitcoin Runs the Show While Ethereum Sits on the Sidelines

Bitcoin Resumes Uptrend, Closing the Week 12.35% Higher

As the flagship cryptocurrency takes the lead over assets from stocks to bonds, it kicked off Monday, March 8th, with a 2.86% upswing to close the day at $52,270, according to CEX.IO exchange rate.

The bullish price action seen at the beginning of the week seems to have been fueled by the news that Norway-based industrial investment giant Aker ASA launched a new BTC initiative dubbed Seete. With an initial capital allocation of $58 million, approximately 1,160 BTC, the firm will invest in various innovative projects in the crypto ecosystem and form partnerships with key industry players.

Along the same lines, Stone Ridge Holdings Group, Morgan Stanley, New York Life, MassMutual, Soros Fund Management, and FS Investments joined a $200 million investment in Bitcoin Firm NYDIG.

The continuous announcements by a cadre of big-name investors is putting pressure on those who have not yet entered the market. Especially now that Grayscale is allegedly launching a Bitcoin ETF. The cryptocurrency asset management firm published nine new job postings that suggest that it is joining the race to win the SEC’s approval.

The number of Bitcoin-related posts across social media surged to 1.70 billion engagements due to the mounting speculation around the first U.S. Bitcoin ETF. Meanwhile, BTC rose another 11% after Monday’s close as market participants rushed to get a piece of it. The pioneer cryptocurrency was able to hit a weekly high of $58,170 on Thursday, March 11th.

Nonetheless, the upward impulse was capped at this price level as Bitcoin‘s put-call open interest ratio rose to a nine-month high. The spike was likely triggered by increased put selling, which was then reflected in BTC’s price. The bellwether cryptocurrency dropped by 1.70% on Friday, March 12th, to close the week at $57,240, providing holders a weekly return of 12.35%,

Ethereum Outshined by Bitcoin, Proving a Weekly Return of 2.30%

Ethereum’s network utility is expanding at an exponential rate, moving closer to founder Vitalik Buterin’s dream of it becoming the “world’s computer.”

Not only is decentralized finance (DeFi) booming and non-fungible tokens (NFTs) rising in popularity, but Atari will bring its gaming experience onto the blockchain. In a partnership with Decentral Games, the firm will develop a cryptocurrency casino in “Vegas City,” a gaming district in Decentraland‘s metaverse.

But Ethereum is not all fun and games. London-based ETC Group announced that it would list an ETH exchange-traded product (ETP) on Deutsche Borse’s Xetra market. To meet the institutional demand for “regulated crypto products that are secure and liquid,” the new central counterparty-cleared product will offer exposure to the second-largest cryptocurrency by market cap with a management fee of 1.49%.

The news seems to have been greatly welcomed by investors as Ethereum’s price rose by nearly 9% after Monday’s open. The smart-contracts token rose from $1,730 to a weekly high of $1,880 two days later, according to CEX.IO exchange rate. However, market participants seem to have taken advantage of the rising price action to book profits.

Ethereum spent the rest of the week trending downwards with no significant announcements being able to contain falling prices. Even though Taco Bell, Associated Press, and Banksy made headlines with the sale of NFTs, Ether erased all weekly gains.

It seems like ever since the Chicago-based commodities exchange CME launched its new ETH futures contract, Bitcoin has outshined this cryptocurrency. As a result, Ethereum closed Friday, March 12th, at $1,770, only 2.30% higher than the weekly open of $1,730.

The Technicals Project a Correction

While the fundamentals behind Bitcoin and Ethereum seem to have greatly impacted their market valuations, the technicals point to a correction in the near term. The Tom DeMark (TD) Sequential indicator has presented a sell signal on BTC’s daily chart. If validated, the pioneer cryptocurrency could drag down ETH with it.

Transaction history shows that nearly 1 million addresses bought over 400,000 BTC at an average price of $56,000. Meanwhile, roughly 350,000 addresses are holding more than 9 million Ether at $1,750. As long as these demand barriers can hold, Bitcoin and Ethereum will likely aim for new all-time highs.

Nevertheless, a spike in selling pressure that pushes these cryptocurrencies below their respective support levels could be devastating for the bulls. The next critical area of interest for Bitcoin sits at $52,000 and for Ethereum at $1,340.

Konstantin Anissimov, Executive Director at CEX.IO

Buy Ethereum with Binance

Bitcoin Maintains Upswing As Ethereum’s All Time High Journey Sees Roadblock

Bitcoin has maintained a steady upswing, despite the bear forces that seem to be active in the markets today. Ethereum is showing bearish tendencies, as altcoins including Cardano (ADA), Polkadot (DOT), XRP (XRP), Uniswap (UNI), and Chainlink (LINK) are all also bowing to the dictatorship of the bears.

In general, the dominant stride of Bitcoin has kept the global market capitalization in the green zone, up 2.13% in the past 24 hours to $1.69 trillion. This article today focuses on the price actions of Bitcoin and Ethereum, and the possible short and medium-term projections for the two leading digital assets.

Bitcoin’s Demand Remains High, A Bullish Backing For an Ambitious Ride

Bitcoin’s dominance in the market is not about to be pulled down as many analysts have suggested as the premier cryptocurrency is continuously seeing increased demand, from both retail and institutional investors.

In a bid to meet this demand, American investment banking giant JPMorgan Chase & Co filed an application with the United States Securities and Exchange Commission (SEC) to launch an investment vehicle that will track the performance of 11 firms including MicroStrategy and Tesla with direct or indirect exposure to Bitcoin. The primary aim of the move is to give more institutional investors a new option to get involved in Bitcoin without directly owning the digital currency.

In terms of the rub off on the price of the asset, BTC bulls are delighted by the news from JPMorgan Chase, but the immediate pressure from undecided HODLers to offload some of their holdings is casting doubt on the imminent bullish runs to new highs. Despite the maintenance of an uptrend with a growth of 3% to $55,580.00 according to CEX.IO price feeds, the bear actions are still visible on the daily BTC-USD chart on TradingView.

The chart shows a bullish trend, indicating that there are more buyers than sellers in the past 24 hours. However, the last candlestick shown on the chart is bearish, a depiction of an attempted takeover by the bears. By and large, BTC’s Relative Strength Index (RSI) is currently slightly below the sell-zone of 70, but the 9-day Moving Average is bullish, reassuring market enthusiasts on an imminent ride to new highs.

From current indications, Bitcoin may see a little correction to retouch $54,000, after which, a run to $58,000 will be the next stop.

Ethereum’s Push For Network Usability and Miner’s Protest Giving a Bearish Advantage

The high gas fees of the Ethereum Network have spurred many users to abandon the blockchain in search of alternative blockchains that offer cheap and fast transactions. Nonetheless, the majority of the Stablecoins out there including Tether (USDT) and USDC are still utilizing the network, helping to maintain the relevance amid planned exodus by DeFi smart contracts.

While anticipating the initiation of the Ethereum Improvement Protocol (EIP) 1559 in July, Some Ethereum miners are in protest as the planned token burning is set to affect their personal profitability. Perhaps, this is why the price of Ethereum is seeing a roadblock on its way to beat the $2,000 psychological level.

At the time of writing, Ethereum is exchanging hands at $1,782.72, a drop of 1.48% in the past 24 hours. Ethereum has traded below the $2,000 level since February 20th, and the current internal battles are undermining the mainstream investor’s desire to see the coin trade at new levels.

The daily ETH-USD chart above shows the unrelenting battle between the bulls and the bears. Though the Awesome Oscillator is above the zero benchmarks, the price is not entirely at a trusted level to soar, as it is racing away from the upper Bollinger Band as seen.

The hurdles to cross are the $1,900 and the $2,000 resistance levels, but until the bulls break free from the $1,800 level, soaring to these levels may yet be halted for a while. But a consistent push will see the coin back on track to aim at the $2,500 target in the mid-term.

Konstantin Anissimov, Executive Director at CEX.IO

Bitcoin’s Nosedive below $45,000 Can Open Way to Continued Correction, Ethereum’s Repeats after Bitcoin

Bitcoin Sellers Took the Lead, Took BTC/USD below 45,000

BTC/USD started the week at 57,499 near the all-time high at 58,400, based on the CEX.IOpricing. In the first four hours of Monday’s trading session, BTC/USD declined to 56,000, which was an important support level in intraday terms. The level produced some buying pressure for the pair but only for the next four hours, as BTC/USD closed the 4-hour candlestick between 04:00 and 08:00 UTC at 46,479.

That, however, made no lasting influence, and BTC/USD had broken down below 56,000 and dropped below 53,500 by 16:00 UTC. That was a signal for a big sale, as the Bitcoin market had been overheated. In confirmation of that hypothesis, BTC/USD made a huge rollercoaster swing in the interval between 13:00 and 15:00 UTC, falling from 53,677 to 47,400 and bouncing back up. Meanwhile, Glassnode, an on-chain data aggregator reported that high-net-worth Bitcoin holders had sold 140,000 BTC, which was proof of traders’ readiness to sell BTC/USD big time. There was a slight upside recovery to 56,000 at the end of Monday, but with the start of Tuesday’s session the selling went on.

By 09:00 UTC of Tuesday, 23rd February, BTC/USD had already been at 46,500 as per Bitstamp’s exchange rate. Form 09:00 UTC, BTC/USD continued sideways, with high volatility taking place in the price action. The pair was edging sideways within the corridor of 45,000 – 49,000 until 01:00 UTC of Wednesday, 24th February. At that time a rebound above 49,000 started to take place and continued until 05:00 UTC, with 51,000 topped out.

The volatility reduced considerably, as the pair continued edging sideways within the price range of 50,000 – 51,000. At 13:00 – 14:00 UTC, a drawdown to 49,000 happened; afterwards, BTC/USD continued between 48,000 – 50,000 until the end of Wednesday. The sideways fluctuations continued on Thursday, 25th February, until 12:00 UTC. At 12:00 – 14:00 UTC, BTC/USD bounced to 52,000. Afterwards, BTC/USD began another continued downfall, which continued to 45,000 on Friday, 26th February. The falling stopped at 08:00 UTC, as the zone offered a buying opportunity.

BTC/USD on a 4-hour-timeframe chart

BTC/USD had bounced to 48,265 by 17:00 UTC and then reversed downwards until 23:00 UTC, almost reaching 45,000, and closed Friday at 45,447. On Saturday, 27th February, BTC/USD the bulls continued supporting the trading pair with buying volumes, and BTC/USD briefly rose to 48,100 between 0200 – 02:45 UTC. The pair continued sideways until 07:00 UTC, once breaking above the 50-period hourly SMA, but was eventually driven down below 47,000 between 08:00 and 09:00 UTC. The upside attempts at the SMA continued unsuccessfully until the end of Saturday. On Sunday, 28th February, selling pressure increased and saw BTC/USD gradually head down to 43,067 at its lowest. The capitalisation below 44,000 on the 4-hour timeframe was an indication of continuing selling bias in the trading pair.

Hope for Bitcoin Bulls

There was some news in the week of 22nd February that kept up Bitcoin bulls’ hopes of an upside recovery. Square, Inc. that had invested $50,000 million in Bitcoin in October 2020 made another Bitcoin purchase worth $170 million on 24th February 2021. Besides that, MicroStrategy – the corporate frontrunner among Bitcoin investors – bought 19,452 more BTC worth $1.026 billion at an average price of $52,765. This new purchase had brought MicroStrategy’s exposure to Bitcoin to 90,531 BTC.

These tendencies clearly showed that high profile investors were happy with the Bitcoin drawdown and were ready to buy the dip. This shows that Bitcoin continues to be looked upon as a solid financial instrument, and every downside correction is going to be met with substantial buying volumes.

Up or Down for BTC/USD in the Near Term?

The decline to nearly 43,000 and a stabilisation below 44,000 on the 4-hour timeframe was a signal of continuing bearish bias in BTC/USD, promising lower lows. Still, some bullish momentum remains to be present, and a breakthrough above 48,000 and above the 50-period 4-hour SMA would signal a change of bias and an upside recovery gaining traction. On the contrary, another decline to 43,000 will mean a continuation of bearish price action, with prospects of getting back to testing the 31,000 support level.

Therefore, we shall soon get answers on where BTC/USD will go next. With the pair edging higher towards 48,000 in the morning hours of Monday, the odds for a breakthrough are presently going higher.

1,392 Supports ETH/USD

ETH/USD opened the week of 22nd February at 1,933.4 and headed straight down from the start of the day, briefly getting below the 50-period 4-hour SMA with the lower wick of Monday’s first 4-hour candlestick reaching 1,867.3. The SMA gave ETH/USD some transitory support, but it continued sinking lower until 09:00 UTC on Tuesday, 23rd February, with support being found at 1,440. The trading pair continued sideways until the end of Tuesday, fluctuating within a considerable range of 1,360 and 1,600.

From the start of Wednesday, 24th February, the ETH/USD trading pair headed upwards to reach 1,715 and break above the 50-period hourly SMA. The volatility shrank considerably, as ETH/USD spent most of the time until 18:00 UTC on Thursday, 25th February within the range of 1,586.4 – 1,662, being regularly supported by the 50-period hourly SMA.

ETH/USD, ETH/USD headed down from 18:00 UTC on Thursday through to 08:00 UTC on Friday, 26th February. The pair eventually hit 1,402 at the minimum and continued edging sideways between 1,424.7 and 1,560 until the end of Saturday, 27th February, with the 50-period hourly SMA upkeeping the ETH/USD bearish momentum.

Another downswing took place on Sunday, 28th February, with a minimum at 1,299.6. However, an upside recovery that began at 19:00 UTC and continued through to the end of Sunday, with the 1,392.2 support level letting ETH/USD close the week at 1,417.5 as per the CEX.IO pricing. On top of that, ETH/USD finished Sunday in a hammer candlestick on the daily timeframe, which coupled with the 1,420 support level gives increased potential for a full-fledged upside recovery in the near term.

ETH/USD stabilises at 2018 high, daily timeframe

Grayscale Ethereum Trust Buying the Dip

It became known that the intraday pullback in ETH/USD between Tuesday, 23rd February, and Wednesday, 24th February, from the mid-to-lower 1,400s to above 1,700 coincided with a purchase of 10,000 ETH by Grayscale Ethereum Trust, which brought its Ether exposure to 3.17 ETH.

ETH/USD pulls back from 1,440 to 1,694, hourly timeframe

The bullish market reaction to the purchase clearly shows that big players’ moves have a strong impact on the Ethereum market. And the purchase itself shows that high-profile investors, who constitute most of Grayscale clients, have trust in Ethereum in the long term, which can result in continued market growth for the smart-contract pioneer.

Konstantin Anissimov, Executive Director at CEX.IO

Bitcoin and Ethereum See Major Weekend Corrections After Hitting New ATHs

Bitcoin (BTC) and Ethereum (ETH) have seen massive price increase over the past week, only for their prices to reach the peak over the weekend, and then see strong corrections as the final week of February started. Both coins have seen massive price drops over the last two days, but this doesn’t necessarily mean that the rally has ended.

Bitcoin price crashes

Bitcoin has been making headlines about new highs and new records for weeks, and even months, at this point. The coin’s current all-time high, reached on February 21st, puts it at $58,400. Over the past week, the coin surged from $50k to reach this record over the weekend.

While it did go up and down between $56k and $58k for several days, it appears that it did not make any of these upper levels into a strong enough support to withstand the correction that came after.

The price crashed on February 21st, dropping from $58,400 to $55,800, according to data from CEX.IO. However, yesterday, February 22nd, it dropped from $55,800 to $47,600. The drop caused traders and investors to start buying, causing an immediate recovery to $53,859, but as soon as the price came back above $50k, people started selling again. Asa result, BTC price dropped below $50k once more, currently sitting at $49,920.

The oversell came soon after veteran trader, Peter Brandt, hinted that BTC could peak at $200k in a recent tweet. However, he also said that it is likely that the coin’s price will go through a deep correction before hitting this price. It is possible that this was the correction he was expecting to see, although it is just as likely that this is only a beginning.

Meanwhile, Elon Musk once again spoke about cryptocurrencies on Twitter, this time in response to Changpeng Zhao. In a recent interview, Zhao noted that he is surprised that Musk is pushing Dogecoin so much, but that he is, ultimately, free to like whatever he wants. However, he did note that it was interesting that Musk’s company, Tesla, bought $1.5 billion of BTC and not DOGE.

To that, Musk replied that Tesla’s action is not reflective of his opinion. Having Bitcoin is a simply less dumb form of liquidity than cash, as he stated.

He did point out that he is an engineer, and not an investor. Later on, in conversation with Peter Schiff, Musk also mentioned in a different context that Bitcoin and Ethereum ‘do seem high,’ potentially hinting that he expects a correction.

Ethereum price crashes after hitting $2k

Ethereum has been going up for a long time now, slowly but surely heading towards the $2k mark. The coin did not have many instances where it suddenly skyrocket like what Bitcoin tends to do. Instead, it was a long but steady growth, and it finally allowed ETH to hit the $2,000 milestone late on February 19th. The coin reached this milestone just as the weekend started, and it even kept going for the most part on Saturday.

According to CEX.IO data, ETH’s current all-time high is at $2,035. After reaching this high, however, the coin saw a strong correction. It dropped to $1800, recovering to $1,920 after a brief period. On Sunday, it remained between $1900 and $1970, fluctuating between these two positions.

However, yesterday, February 21st, the coin saw a massive crash that took it down to $1550 before seeing a recovery to $1,800. As of today, Ethereum price is dropping again, currently once again sitting at $1593, and currently still heading down.

At the same time as the price was crashing, Binance had one of its withdrawal suspensions that prevented users from withdrawing ETH and Ethereum-based tokens.

Needless to say, a lot of people were quite infuriated with the exchange, which once again claimed that the high network congestion is responsible for the inability of users to withdraw money. Binance has had a bit too many incidents a bit too often, and the exchange has also made headlines in which it was blamed for purposefully choking Ethereum’s network to drove more users to its platform.

What is next for Bitcoin and Ethereum?

It is safe to say that both, Bitcoin and Ethereum have reached uncharted territories over the past few days, and it is understandable that investors and traders were in a rush to sell as soon as something signaled a correction was coming. However, this is likely only a bump on the road, and a lot more of price growth is expected by the experts.

Konstantin Anissimov, Executive Director at CEX.IO

18th February: BTC/USD Declines below 52,000, ETH/USD Comes Closer to 2,000

BTC/USD

The pair was declining until the afternoon. Between 12:00 and 13:00 UTC, the pair continued trending down and reached 50,900, based on the CEX.IO exchange rate, but bounced off the intraday 51,200 support level formed on 17th February and closed the hour above the open. This let BTC/USD retrace the losses in the next two hours.

BTC/USD had travelled back to 52,300 by 15:00 UTC but was unable to try and test the 52,400 level of resistance and turned straight down once again between 15:00 and 16:00 UTC. The trading pair closed the hour at 51,444 as per the CEX.IO pricing and, bouncing to 52,000 between 16:00 and 17:00 UTC, continued trending sideways under 52,000 for the most part until the end of the trading day. BTC/USD came under some selling pressure in the last two hours and came down from 52,110 to 51,635 at the day’s end.

The lack of sufficient buying sentiment and buying trading volumes was the reason why BTC/USD could not attempt to continue its ascent past 52,400. The sideways price action shows that traders are still expecting the uptrend to continue, while market makers might be using this flat channel to make new liquidity to make a breakthrough past 52,400. The positive news factor could be a quick resolution to this stagnation around 52,000. Therefore, some positive news regarding the Bitcoin market may be enough for BTC/USD to get at 52,400 and make a breakthrough.

Considering the overall bullish sentiment dominating BTC/USD, we believe this sideways price action to be another milestone in keeping BTC/USD on the rising course. Thus, we expect the near BTC/USD target to be at around 54,300.

ETH/USD

ETH/USD opened the trading session 18th February at 1,849 and made substantial upside progress in the first two hours, having broken above 1,900 by 02:00 UTC. In the next two hours, the BTC/USD trading pair came down below 1,900. From 04:00 UTC, BTC/USD continued trending sideways within a very limited price range, staying for the most part between 1,880 and 1,900.

With some upside slippage at the open of the 10:00 hourly candlestick, BTC/USD had risen above 1,920 by 11:00 UTC. Between 11:00 and 12:00 UTC, the trading pair made a downside retracement, trading below 1,900 for several minutes but, having closed the hour at 1,900, continued climbing higher until the end of the day, setting multiple historical highs along the way.

The trading pair reached the day’s maximum between 21:00 and 22:00 UTC, having risen to 1,950, but came all the way down to 1,920 before the day’s close. Still, ETH/USD was able to close the day near the new all-time high with some very considerable upside progress at 1,936.3 as per the CEX.IO exchange rate.

ETH/USD added some 4.83% to its price on 18th February, which is all the more impressive against the backdrop of a negative price day in BTC/USD, which showed -0.94% on the day. Ethereum is apparently largely enjoying the DeFi market growth as most of its protocols use Ethereum smart contracts.

Alongside, CME Ethereum futures trading volumes and open interest are growing consistently, showing the rising demand for Etherum from professional investors. The open interest for CME Ether futures had grown more than twofold from 20 million on 9th February to $62 million on 17th February, according to Glassnode.

This makes $2,000 a very close target for ETH/USD. And we see 2,342 to be the next target for ETH/USD for the second quarter of 2021.

Konstantin Anissimov, Executive Director at CEX.IO

Bitcoin Generates 15.70% in Weekly Returns as Speculation Mounts Around Elon Musk’s Entry Into the Industry

The prominent American business magnate tweeted that “in retrospect, it was inevitable” after changing his Twitter bio to include the word “Bitcoin,” which made speculators go crazy. As a result, the flagship cryptocurrency rose to a high of $38,650 a few hours later, and by the end of Friday’s trading session, it had lost all the gains incurred.

While BTC remained dormant over the weekend, it opened on Monday, February 1st, trading at $33,170, according to CEX.IO’s exchange rate. As speculation continued to mount around Musk’s entry into the cryptocurrency space, prices went into a steady uptrend.

By Thursday, February 4th, at 8:00 UTC, the pioneer cryptocurrency had risen by nearly 17% to hit a high of $38,800.

Given the proximity to the end of the weekly trading session, it seems like some investors took advantage of the rising price action to book profits. The increase in downward pressure pushed Bitcoin’s market value down by 1.14% to close Friday, February 5th, at a low of $38,270.

Investors were able to grasp a weekly return of 15.70% due to the high speculation levels around it.

Ethereum Closes the Week With Over 30% Gains

Like Bitcoin, Ethereum’s price action seems to have been controlled by high expectations around CME’s Ether futures launch. As the world’s largest financial derivatives exchange planned to list the new investment vehicle on Monday, February 8th, market participants bought in anticipation of the event.

Even Grayscale reopened its Ethereum Trust to accredited investors and closed a deal to buy more than $76 million worth of ETH.

The significant spike in buying pressure appears to have had an important impact on Ethereum’s price. The second-largest cryptocurrency by market capitalization opened on Monday, February 1st, at a low of $1,315 and quickly began trending upwards, according to the exchange rate from CEX.IO.

In a parabolic-like move, Ethereum rose by nearly 36% to hit a new all-time high of $1,760 on Friday, February 5th, a few hours before the weekly trading session’s close. As investors began to take some profits off the table in preparation for the weekend, Ether saw its price drop by 2.60% to close at $1,725.

Given the impressive price action that Ethereum enjoyed throughout the week, it yielded a weekly return of 31%.

The Cryptocurrency Market Moves Forward

Elon Musk’s interest in Bitcoin could be the catalyst of a new bull run towards $50,000 or higher. By adding BTC to one of his company’s balance sheets, Musk will be forcing other lower cap companies to reconsider their cash reserves. The move could trigger a ripple effect across the global financial markets, putting the bellwether cryptocurrency into the spotlight as the only decentralized and censorship-resistance store of value asset.

The high levels of correlation in the cryptocurrency market suggest that if Bitcoin heads north, Ethereum will likely follow it. Even though the launch of CME’s Ether future may serve as a “sell the news” event, the downside could be capped by the significant number of investors who purchased ETH at $1,600. For this reason, even if Ethereum retraces, its uptrend will remain intact, targeting $2,000 next.

Konstantin Anissimov, Executive Director at CEX.IO

Bitcoin Yields 14.30% Gains in January as Demand Skyrockets

Indeed, BTC’s price opened on January 1st at a low of $28,997, and seven days later, it had risen by nearly 45% to hit a new all-time high of $42,000, according to CEX.IO’s exchange rate.

Despite the significant gains incurred within such a short period, Bitcoin experienced one of the largest one-day corrections since March 2020’s Black Thursday, shortly after reaching record highs. Its price plunged by more than 28%, to hit a low of $30,333.

Some whales took advantage of the downswing to add more tokens at a discount to their portfolios. As prices plummeted, the number of addresses holding 1,000 to 10,000 BTC surged by nearly 2%. Approximately 43 new whales joined the network at the time, helping Bitcoin rebound to $40,100 by January 14th.

Although investors seemed hopeful about another leg up that could see BTC rise above $50,000, one on-chain metric forecasted that a local top had been reached.

The Entity-Adjusted Spent Output Profit Ratio (aSOPR) indicator anticipated that Bitcoin was bound for further losses. This fundamental metric represents the profit ratio of BTC tokens moved on-chain, measured through the variation between the purchase price and sale price.

Each time this on-chain index rose to near a value equal to or higher than 1.20 over the past eight years, it served as a sell signal leading to a steep correction. On January 14th, the aSOPR was hovering at a value of 1.24, suggesting that BTC would likely enter a considerable corrective period before its uptrend resumed.

What came next was a 28% retracement that saw Bitcoin dip below the $29,000. But prices did not last long around this level as Grayscale seems to have bought the dip to meet institutional demand. The firm reportedly added more than 41,500 BTC to its holdings, worth roughly $1.3 billion.

The significant spike in upward pressure helped BTC recover towards the end of the month to close at $33,172. Bitcoin holders were able to grasp a monthly gain of 14.30% throughout January.

Ethereum Generates Over 78% Monthly Gains While Tokens Flee Exchanges

Ethereum was able to catch up with Bitcoin’s impressive bull run throughout January despite investors’ skepticism. The launch of the ETH 2.0 deposit contract in December 2020 was expected to quickly generate a supply shock, pushing prices to new all-time highs. But as Ether went into a consolidation phase first, market participants became concerned about its future price action.

Even though it took some time for the Beacon Chain news to be priced in, the first ten days of January demonstrated that Ethereum was poised to surprise even the most skeptics.

The second-largest cryptocurrency by market capitalization opened the monthly trading session at a low of $738.13 and quickly began trending upwards. By January 10th, Ether had climbed by more than 80% to reach a high of $1,347.55.

Long-term investors that had been underwater since Ethereum last traded around these price levels appear to have booked in profits en masse. The sudden spike in selling pressure was followed by a 32.70% downswing, pushing ETH’s market value to $900, according to the exchange rate from CEX.IO.

Regardless of the massive losses incurred during this correction, market participants rushed to cryptocurrency exchanges to buy Ethereum at a discount. As buy orders were getting triggered while overleveraged traders were getting liquidated, ETH was able to rebound and hit a new all-time high of $1,440 on January 19th.

From that moment on, Ethereum price began to make a series of higher lows while the $1,440 resistance continued to reject it from advancing further. Such market behavior formed a massive ascending triangle on Ether’s 1-day chart. A horizontal trendline developed along with the swing highs, while a rising trendline developed along with the swing lows.

Although Ethereum closed in January at $1,315, providing investors a whopping monthly gain of more than 78%, the ascending triangle pattern forecasts that prices are bound for higher highs. By measuring the distance of the triangle’s widest range and adding its x-axis, it projects that Ether is prime to rise another 37% towards $2,000.

FOMO is About to Kick In

Regardless of the massive gains that Bitcoin and Ethereum generated in January, both of these cryptocurrencies seem primed for higher highs.

From a technical perspective, the formation of a descending triangle on BTC’s 1-day chart forecasts a target of $45,000. Meanwhile, the ascending triangle that formed on ETH’s 1-day chart could see it rise to $2,000.

When looking at the Stablecoin Supply Ratio (SSR) indicator, the bullish thesis holds. This on-chain metric has been steadily declining since the beginning of the year as more stablecoins are minted to meet the market’s demand. A low SSR is indicative of mounting buying power ready to flow into the cryptocurrency market.

As more stablecoins get deposited into exchanges, it signals that investors are positioning themselves to re-enter the market. A potential breakout of the technical patterns previously mentioned may ignite FOMO among market participants who will want to get a piece of Bitcoin and Ethereum. Under such circumstances, these cryptocurrencies could easily break new record highs.

Konstantin Anissimov, Executive Director at CEX.IO

Bitcoin’s Correction Extends Generating Nearly 8% in Weekly Losses

From that point on, Bitcoin began a massive downward trend that saw its market value drop by more than 24.10%. It went from Tuesday’s high of $37,875.00 to trade at a low of $28,810.10 on Friday, January 22nd, at 00:00 UTC. Consequently, generating more than $2.95 billion in long and short BTC positions across the board.

Despite the massive losses, on-chain data shows that some market participants took advantage of the downswing to buy tokes at a discount. The number of addresses with more than 1,000 BTC surged by 1.50% within such a short period. Roughly 32 new whales joined the network as Bitcoin’s price tumbled.

The significant spike in buying pressure helped push prices back up. As a matter of fact, Bitcoin rose by 17.87% to hit a high of $33,900.00 on Friday, January 22nd. But as the weekly trading session came to an end, some of those investors who bought the dip appear to have booked profits.

Bitcoin holders incurred a weekly loss of 7.92% as prices closed Friday at a low of $33,059.70.

Ethereum Yields Minimal Weekly Returns While Downside Potential Gets Capped

Ethereum was able to momentarily decouple from Bitcoin after the week of January 18th kicked off. Although the smart contracts token opened Monday’s trading session at a low of $1,233.67, it quickly entered an impressive uptrend. According to the exchange rate of CEX.IO, its price surged by nearly 17% to hit a new all-time high of $1,440.00 on Tuesday, January 18th, at 12:00 UTC.

Nonetheless, Ether suffered a steep correction like the rest of the cryptocurrency market, plummeting by 27.80% after it reached new record highs. The second-largest cryptocurrency by market capitalization saw its price retreat throughout the rest of the week to hit a low of $1,040.00 by Friday, January 22nd, at 00:00 UTC.

Even though Ethereum took a considerable nosedive, its network activity suggested it is still primed for higher highs. On-chain data reveals that market participants seemingly entered an accumulation phase over the past few months as a significant number of tokens have been depleted from cryptocurrency exchanges. Nearly 2.40 million ETH have been taken out of trading platforms since August 2020, representing a 12.50% drop.

The substantial decrease in supply is negatively impacting the rate at which Ethereum can be exchanged for cash. As Ether’s velocity decreases, its downside potential is being capped while the chances for higher highs increase.

Such market behavior was visible in Ether’s price action. Following the swing low, Etheruem rebounded by 18.66% to close Friday’s trading session, January 22nd, at $1,239.04. As a result, investors were able to generate a weekly return of 0.08%.

On the Vicinity of Higher Highs

High net worth individuals seem to be buying Bitcoin and Ethereum at every dip, showing the high interest that institutional investors have for this new asset class.

Such a significant spike in demand is expected to accelerate as inflation continues consuming sovereign currencies’ purchasing power like the U.S. dollar. The new $1.9 trillion coronavirus relief plan that the U.S. Congress prepares to unveil could see a massive exodus of institutional capital from the traditional markets into the cryptocurrency industry.

As trust erodes in the global financial system, it is very likely that Bitcoin and Ethereum advance further as these cryptocurrencies represent a new paradigm. But for the uptrend to resume, BTC must hold above $30,000, and ETH has to keep the $1,000 level support.

Only under these circumstances will the flagship cryptocurrency advance towards $50,000 and the smart contracts giant to $2,000 or higher.

Konstantin Anissimov, Executive Director at CEX.IO

BTC/USD Breaks below Support and 35,000, ETH/USD Breaks down to 1,260 but Makes It Back above 1,325

BTC/USD

With the falling continuing, the price broke down below the local support level at 33,937between 09:00 and 10:00 UTC.

At 11:00 UTC, the pair slowed down the face of its downward price action and started finding support at around 33,450. From 12:00 to 18:00 UTC, the pair was mainly contained between 33,450 and a local technical level at 33,937, with a brief dip below 33,500 taking place between 16:00 and 17:00 UTC. But some measure of resistance was found at 33,450 between 11:00 and 17:00 UTC did not let the price break it down. At 17:00 UTC, BTC/USD attempted an upturn above the resistance level and was able to do it in the hour between 18:00 and 19:00 UTC.

The exit outside the symmetrical triangle increases the chances of further downside dynamics for BTC/USD in the near future. It means that the 2.618 Fibonacci retracement level will be the next target level for the pair. There is a local support level at 33,817, but it should not pose a serious obstacle for BTC/USD on its way to 31,000.

ETH/USD

ETH/USD opened 20th January at 1,367.9 as per the exchange rate on CEX.IO. The overall dynamics were quite reminiscent of those of BTC/USD. The trading pair took a bounce to 1,405 in the first hour of the day and dropped to 1,343 between 03:00 and 04:00 UTC. Some certain sideways trading was taking place between 04:00 and 09:00 UTC.

Between 09:00 and 10:00 UTC, ETH/USD once again dropped handsomely to 1,300. The third big drop of the day took place between 11:00 and 12:00 UTC when the pair fell below 1,260 and quickly bounced off 1,240. But further falling was retraced with countertrade volumes, and the ETH/USD cross rate continued trading mainly between 1,260 and 1,310 for the most part of the time between 12:00 and 18:00 UTC.

A break back above the 4.326 Fibonacci retracement level occurred between 19:00 and 20:00 UTC, with the price suddenly rising 1,350. ETH/USD continued trading above 1,325 until 21:00 UTC.

The ETH/USD took a substantial downswing to 1,260 but the late retracement above 1,350 fairly nullified those downside efforts, showing a continuing bullish sentiment in ETH/USD. ETH/USD remains under temporary selling pressure, but the uptrend on the 4-hour timeframe remains unbroken with new lows going consistently above the previous ones. Therefore, the closest target for ETH/USD is an upside one at 1,430.

Konstantin Anissimov, Executive Director at CEX.IO

Bitcoin Rises to New All-Time Highs, Generating over 20% in Weekly Returns

Within a few hours after the weekly open, more than $2 billion were liquidated across the board while BTC dropped to $27,500.00.

Sidelined investors seem to have taken advantage of the downward price action to get back into the market. As a significant number of buy orders were getting filled while prices were going down, Bitcoin was able to rebound and recover lost ground. By January 5th, at 20:00 UTC, the pioneer cryptocurrency was trading at a high of $34,490.00, surpassing the weekly open.

The upswing was interpreted as a bullish sign by many investors who rushed to exchanges to add more tokens to their positions. The considerable spike in buying pressure seen on Tuesday, January 5th, spilled over the rest of the week, allowing Bitcoin to surge more than 22%. By Friday, January 8th, the bellwether cryptocurrency had reached a new all-time high of $41,999.90, according to the exchange rate of CEX.IO.

As the weekly trading session was coming to an end, some traders appear to have booked in profits. The increase in downward pressure pushed BTC down over 3.50%. Thus, Bitcoin closed Friday’s trading session at $40,553.10, providing investors with a weekly return of 21.10%.

Ethereum Whales Go into Buying Spree, Pushing Prices Up Over 24%.

Like Bitcoin, Ethereum experienced high levels of volatility after the weekly trading session of January 4th began. The smart contracts giant jumped by more than 19%, from an opening price of $975.65 to a high of $1,165.48. Then, ETH plummeted by nearly 25% to hit a low of $973.00.

The erratic price action seen on Monday, January 4th, generated over $1.2 billion in liquidations across the board. Regardless, Ether was able to stabilize and maintain a steady uptrend as whales added more tokens to their bags.

On-chain data reveals that throughout the week of January 4th, five new addresses holding 100,000 to 10,000,000 ETH joined the network, adding fuel to the upward price action.

Given the significant increase in buying pressure, Ethereum surged by nearly 33% to hit a high of $1,289.00 on Thursday, January 7th, according to the exchange rate of CEX.IO. A considerable number of traders enjoyed the rising prices to realize profits, which resulted in a significant correction. Indeed, Ether took an 18% nosedive due to the increase in sell orders to hit a low of $1,067.00.

Ethereum was able to recover quickly after the downswing, gaining more than 14% in market value. The second-largest cryptocurrency by market capitalization closed Friday, January 8th, at a high of $1,218.17, according to the exchange rate of CEX.IO. Ether holders were able to grasp a weekly return of 24.30% due to the bullish price action.

In the Vicinity of a Correction

Despite the impressive uptrend that Bitcoin and Ethereum went through over the week, multiple technical indicators suggest that these cryptocurrencies are approaching overbought territory. For instance, the Tom Demark (TD) Sequential indicator presents sell signals in the form of green nine candlesticks on both of these digital assets’ daily charts. The bearish formations forecast a one to four daily candlesticks correction or the beginning of a new downward countdown.

If validated, BTC and ETH could be about to go through a steep correction since they have not had any significant pullbacks since the uptrend began in September 2020. A spike in selling pressure may see Bitcoin retrace to $32,000 and Ethereum towards $1,000. Only a daily candlestick close about their respective yearly highs will invalidate the bearish outlook and lead to further gains.

Konstantin Anissimov, Executive Director at CEX.IO

XRP/USD Price Analysis: December 2020, Prediction for 2021

The reason behind the fall was the SEC’s lawsuit against the founders of Ripple – the company that issued the XRP token – for the sale of XRP worth $1.3 billion along the years since the creation of XRP in 2013.

XRP is a highly centralised and permissioned token: Ripple controls who owns the nodes on its blockchain and selects entities who get to own an XRP node. Therefore, aiming at Ripple founders SEC hit XRP hard.

Since then XRP fell to 0.1727 on 29th December, with investment organisations withdrawing it from their portfolios. The XRP/USD trading pair remains capped under the 0.2500 mark, and that is with BTC/USD rising above 34,000 and ETH/USD hitting 1,164. This is a clear implication of lack of good prospects for XRP/USD in the foreseeable future.

Everything will depend on how the case resolves, and that will surely not happen fast. The legal process will definitely be a long-lasting and highly contentious one, with the complainant’s evidence having to embrace years of Ripple’s XRP sales.

What to expect in 2021

Even though the current levels of XRP/USD look very lucrative from a technical point of view, buying bets on XRP/USD may not prove lucrative in 2021 after the massive outflow of value from the blockchain, including from big funds. The development of the legal process will be the main fundamental issue shaping the price behavior for XRP/USD in 2021. The key proceedings might create increased volatility in the pair, giving some short-term trading opportunities.

From a long-term point of view, the situation with XRP looks brumous and uncertain. The token’s chances of a return to its all-time high of $3.7 are no longer high. In a positive scenario, it could reach $0.6 by the end of 2021.

Konstantin Anissimov, Executive Director at CEX.IO

BTC/USD Holds above 26,385 in Downward Triangle, ETH/USD Consolidates above 700

BTC/USD

There was a sharp rise in selling volumes from 04:00 to 06:00 UTC; the hourly candlestick between 05:00 and 06:00 fell as low as 25,838 but was supported by the buying volumes around 26,000 and closed a few price points below the open, forming a hammer with a long tail, and eventually produced an upside impulse for a local recovery.

Between 12:00 and 13:00 UTC, the pair briefly rose above 27,000 in a relatively short shooting star candlestick. Owing to the general decline of the downward triangle clearly visible on the 4-hour timeframe and the selling stimulus candlestick, the pair edged lower again to 26,300. The local support level, with buying volumes concentrated between 26,200 and 26,300, once again sent the pair a little higher between 17:00 and 18:00 UTC.

This week’s corrective pattern is increasingly looking like a descending triangle, which in general has a downside motive potential and is typical of downtrends. Considering that we are currently facing a firmly going uptrend and the positive fundamental outlook surrounding Bitcoin, 26,250 can be a good entry point for a buying order for BTC/USD with a short-term target of 28,000. It is likely that at the year end the BTC price will be at around that mark.

ETH/USD

Ether has been recently trying to minimise the relative growth gap with its BTC rival. ETH/USD opened the trading session of 29th December at 728. In the first five hours, there was considerable selling pressure, and the pair hit a local low of 690. But two hourly candlesticks with long lower wicks between 04:00 and 06:00, supported with the 50-period simple moving average, produced enough buying stimulus for the pair, to let it grow to $730 around which the pair was trading from 11:00 to 14:00 UTC. The next selling move took the pair to 710 between 16:00 and 17:00 UTC.

From 17:00 to 19:00 UTC, ETH/USD was trying to return to 730, which was reached between 2:00 and 20:30 UTC. Closer to the day’s end the pair was trading at around the day’s open, thus stabilising around 730.

The latest price action in ETH/USD indicates substantial buying stimulus present in the pair. The market is certainly reacting to the Bitcoin uptrend, but the current ETH/USD growth may also be a result of the market’s anticipations relating to Etherum’s transition to the Beacon chain and the potentials it will grant the smart contract pioneer in the near future.

Presently, Ethereum can be regarded as locked between $700 and $740 per Ether. Considering the ongoing bullish trend, chances of a continuation of the uptrend stand above those of a downward reversal.

Konstantin Anissimov, Executive Director at CEX.IO

Big Week for Bitcoin and Ethereum — The Largest Coins Experience a Strong Price Surge

However, that might not necessarily be true for members of the crypto industry. 2020 has been a big year for crypto, with a lot of positive development.

Apart from the growing adoption — particularly among the institutional investors, where the interest has never been higher — the crypto sector saw numerous improvements. The DeFi sector exploded in 2020, giving way to hundreds of DeFi projects and protocols.

Bitcoin proved its usefulness in times of crisis, fairing better than any other asset during the COVID-19 pandemic.

And, in the past 7 days, Bitcoin and Ethereum alike saw extremely positive price movement.

Bitcoin hits a new all-time high

Last Saturday, December 12th, the price of Bitcoin started growing again, climbing from mid-$18,000. Over the weekend, the price reached $19,300, which is where a very strong resistance blocked its way further up.

While this would have been exciting development two months ago, BTC has reached similar levels several times in the past month and a half, and its price ended up continuously rejected.

However, this approach was somewhat different. The price did not saw rejection right away. Quite the opposite, in fact — it stuck close to its resistance for days, until early Wednesday, when it managed to break it.

After the $19.3k level was broken, the price shot up, breaking through the $20k barrier without even feeling it.

It barely slowed down after reaching $21k, although this resistance got broken rather quickly, as well. The next resistance at $22k put up even less of a fight, and before investors knew what was happening, Bitcoin managed to make a brand new all-time high at $23,642.66 on Thursday, December 17th, 2020.

BTC price was finally rejected after hitting this level, as a strong resistance continues to block its way. Fortunately, however, the price encountered a very strong support at $22,500, and this level kept it from spiraling further down.

Bitcoin attempted to go up two times since Thursday, but it was stopped both times by the $23k level. So, the coin spent the last two days fluctuating between $22.5k and $23k, once again seemingly stuck in a $500-wide belt.

The Bitcoin surge was not triggered by any particular event, as far as it is known. Rather, events from earlier this year, such as increased interest by institutional investors, PayPal adding support for BTC in the US and announcing it elsewhere, and BTC scarcity caused by the mid-May Bitcoin halving, all created a great demand for the coin.

Finally, the fact is that the coin hit a new ATH on December 17th, while the last one took place on December 21st. In other words, BTC was only four days early from making a new ATH exactly three years after the previous one. Of course, it is possible that it will surge even higher in days to come, and make a new ATH exactly three years after the one in 2017.

Ethereum on the rise

Similarly to Bitcoin, Ethereum also saw a considerable price increase over the past seven days. Unfortunately, ETH price did not go up enough to allow the coin to hit a new ATH.

No, Ethereum has not climbed even halfway to its old ATH of $1440. However, it was a big participant in the Bitcoin-led rally that dominated this week.

Like Bitcoin, Ethereum’s price surge started last Saturday, when the coin sat just below a strong resistance level at $560. After the rally had started, the coin surged past this level, going all the way up to $590. Its progress was stopped by the resistance at $600, just as Bitcoin’s was at $19,500.

Both coins then surged past their major resistances simultaneously, with ETH hitting its YTD high at $673, just as Bitcoin was making its new ATH on December 17th.

The two coins’ charts are extremely similar. After reaching this height, ETH also dropped like BTC, but it was stopped by its own strong support level at $640. Meanwhile, a resistance at $660 is stopping it from going further up, and so ETH got its own belt, with upper and lower barriers that are keeping it contained.

Obviously, ETH has shown an extreme correlation with BTC, but the correlation is not all that the coin has going for it. Ethereum has recently concluded Phase 0 of its Ethereum 2.0 launch, and Phase 1 had officially started on December 1st.

The coin’s upgrade will be a lengthy one, and it will take quite some time to fully shift to a new, safer, and more scalable version. However, Ethereum has finally embarked on a long-awaited journey, which has renewed many investors’ faith in the project.

Not to mention that DeFi, which went huge this year, was born on Ethereum, and the second-largest crypto project is still the most dominant platform for DeFi project development.

What will happen with BTC and ETH next?

With this week being a massive success for Bitcoin and Ethereum, many are now waiting to see how will this all play out.

Most people are bullish on Bitcoin, as they expect the coin’s price to skyrocket to even greater heights. After all, historical data suggests that BTC typically surges quite a bit several months after going through one of its halvings.

There are some who disagree with this, noting that the two are unrelated, and that Bitcoin moves in cycles, with the fact that growth comes after halving being only a coincidence.

Others expect the coin to experience a major correction, which may pull it down to some lower levels, potentially even cutting its price in half. While this might be a possibility, the demand for the coin is higher than ever, and so is BTC price, as the new bull run that was awaited since 2018 is finally starting.

As for Ethereum, the coin is still tied to Bitcoin itself, and it is unlikely that it will decouple from it anytime soon. For now, most would be pleased to see ETH reach even half of its ATH.

But, there is no doubt that ETH has a lot of potential, and that it will likely start attracting even more traders as it progresses towards Ethereum 2.0.

Konstantin Anissimov, Executive Director at CEX.IO

Weekly Recap: Bitcoin and Ethereum Consolidate, Awaiting for Volatility to Strike Back

Bitcoin kicked off the week of November 30th with a bang. Its price opened Monday’s trading session at $18,180 and immediately began trending up. By December 1st, at 8:00 UTC, the flagship cryptocurrency had risen by more than 9.8% to hit a new all-time high of $19,956.

Some market participants seem to have taken advantage of the upward price action to realize profits. The spike in sell orders triggered a nearly 9.6% correction that saw Bitcoin slip momentarily underneath Monday’s open at $18,050. While this marked the lowest price point of the week, it was not significant enough to get sidelined investors to buy in masses.

As a result, the pioneer cryptocurrency entered a consolidation period seen throughout the rest of the week. Between Wednesday, December 2nd, and Friday, December 4th, BTC was mostly contained in a narrow trading range defined by the $18,625 support and the $19,560 resistance level.

Each time Bitcoin rose to the overhead resistance, a rejection followed, pushing it back to the underlying support. And from this price point, prices tended to rebound.

BTC was forced to close Friday’s trading session at $18,663 because of its sideways price action. Although the bellwether cryptocurrency looked great at the beginning of the week, investors could only grasp a weekly return of 2.7%.

Ethereum Went South as the Hype Around ETH 2.0 Faded

Like Bitcoin, Ethereum also entered the week of November 30th on the right foot. As speculation mounted around the most-anticipated ETH 2.0 upgrade, buying pressure began building up. The spike in demand saw Ether jump by nearly 11%.

The second-largest cryptocurrency by market capitalization went from a weekly open of $576 to a new yearly high of $639 within 32 hours.

Nonetheless, the Beacon Chain’s launch on December 1st was seen by market participants as a “sell the news” event. Those who had been anticipating such a milestone on the Ethereum network seem to have sold to realize profits, triggering a steep decline. ETH plummeted by more than 12.6% to reach the lowest price point of the week at $558.

The smart contracts token recovered some of the losses incurred on December 1st slowly throughout the next two days, but the upward pressure was weak, suggesting more pain on the horizon. Ethereum surged by nearly 12% to hit a high of $625, on December 3rd, at around 16:00 UTC, to then take a nosedive towards the end of the week.

By Friday, December 4th, Ether had retraced by more than 9% to close the week at a low of $567.7. Investors incurred a weekly loss of 1.5% regardless of the high levels of speculation around Ethereum 2.0.

A Steep Correction on the Horizon

While the sentiment around market participants remains overwhelmingly bullish, Bitcoin and Ethereum seem poised for a retracement. The Tom Demark (TD) Sequential index is currently presenting sell signals on these cryptocurrencies’ monthly charts, anticipating that a steep correction is underway.

If a spike in sell orders validates the bearish formations, BTC and ETH may retrace for one to four monthly candlesticks. On their way down, the pioneer cryptocurrency may find support around $13,500, while Ether – around $370 region.

It is worth noting that a bullish impulse that sends these cryptocurrencies above the recent highs may be strong enough to ignite FOMO among market participants. Only a daily candlestick close above $19,956 for BTC and $639 for ETH will invalidate the bearish outlook. Under such circumstances, Bitcoin could rise to $24,000 and Ethereum to $800 or higher.

Konstantin Anissimov, Executive Director at CEX.IO