Blockchain

Ethereum (ETH), the world’s second-largest cryptocurrency, is demonstrating robust momentum as its price stages a resurgence, reclaiming levels above $2,000.

This bullish trend gains traction concurrently with significant developments in the US Securities and Exchange Commission (SEC). The regulatory authority is engaging in discussions regarding the potential approval of a spot Ethereum Exchange-Traded Fund (ETF).

This pivotal development has injected optimism into the Ethereum market, as the prospect of an ETF introduces new possibilities for mainstream adoption and investment, further fueling the current upward trajectory of Ether’s value.

Ethereum’s Ascending Triangle: Bullish Breakout Potential

Over the course of several months, the price of Ethereum has been in a consolidation trend that has resulted in the formation of an ascending triangle. Although the technical formation is bullish by nature, this is only true following a profitable breakout.

Trend lines connect the equal highs and higher lows of the ascending triangle configuration. This arrangement indicates that investors are growing more confident and buying the dips at a faster pace.

Interestingly, today’s charts show there are no “dips” to buy, as Ethereum broke past the vaunted $2,000 level to welcome December on a high note.

Ethereum is not only keeping up, but also rising to unprecedented heights. The price of ETH is currently up 3% at $2,100, and investors and enthusiasts are excited about the possibility of a rally to $3,000 or even higher.

Ether’s impressive success against Bitcoin, outperforming the alpha cryptocurrency by almost 5%, is a major indicator of this. Important on-chain signals imply that ETH may continue to outperform BTC this month.

Fidelity Filing Fuels Ethereum Optimism

The first indication of a bullish move was a breakout over the psychological $2,000 barrier, although there has been a lot of see-saw motion around this level. More specifically, ETH is trading between the weekly support level at $1,930 and the high for the second quarter at $2,140. This is the fourth week in a row that this has been happening.

#Ethereum Spot ETF filing by Fidelity!

Confirms my thesis that after #Bitcoin gets its shine, we’ll see Ethereum running to $3,500 in Q1 2024.

— Michaël van de Poppe (@CryptoMichNL) November 30, 2023

Crypto analyst Michael van de Poppe has voiced his optimism for Ethereum in light of the Fidelity filing. Given this submission, he affirms his conviction that after Bitcoin’s rapid increase, Ethereum is positioned to attain $3,500 throughout the initial quarter of 2024.

In a related development, research shows there has been a significant increase in Ethereum whale accumulation. On-chain data indicates that the biggest Ethereum wallets, according to Santiment, are showing a positive pattern that suggests a big change.

Meanwhile, Ethereum has an amazing 30-day Average Intra-Day Volatility score of 0.45%, surpassing Bitcoin’s 0.32%, a recent research by IntoTheBlock shows.

Investment strategies may need to change as a result of this change in volatility dynamics, which would highlight the Ethereum market’s dynamic prospects.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Freepik

The attention of the crypto community has been drawn to a particular whale that has been accumulating Bitcoin for some time now. The magnitude of the whale’s holdings has left many wondering who it might be and the reason for the accumulation. 

Bitcoin Whale Accumulates Over 10,000 BTC In November

In a post on his X (formerly Twitter) platform, popular Bitcoin investor Lark Davis revealed details about the “mystery whale” who had been accumulating Bitcoin. Interestingly, the wallet (bc1qch) had accumulated over 10,000 BTC in November. On-chain data also showed that the wallet currently holds over 12,000 BTC ($460 million). 

Following this revelation, many began to speculate on who the owner of the wallet was and the reason for such accumulation. Lark suggested that it could be institutional investors looking to “front-run the Spot Bitcoin ETF approval.” Some were of the opinion that it could be one of the Spot Bitcoin ETF filers who were preparing ahead of a possible approval.  

Irrespective of who the owner was, many felt it was a good sign of things to come for the crypto market. That is because the accumulation showed that there was still a huge demand for the flagship cryptocurrency. One could have also inferred that the whale was possibly loading up their bags ahead of the bull run which some project is around the corner. 

The bullish sentiment was also ignited by the fact that the wallet had not sent out any BTC since it began accumulation at the end of October.  That instantly suggests that the whale was in it for the long term rather than looking to make quick profits. 

BitMEX The Mystery Whale

The mystery around who the whale might be seems to have been resolved. The wallet is reported to belong to the crypto exchange BitMEX. The exchange is also said to have been simply moving its Bitcoin holdings to this new wallet, which forms part of the exchange’s cold wallet.  

This is a real possibility, considering that some of the inflows into the wallet came from a particular BitMEX wallet (bc1qm). ZachXBT, a prominent blockchain investigator, also stated that the wallet belongs to the crypto exchange. He referred to an X post, which noted that the wallet address in question was included in BitMEX’s proof-of-reserves. 

If so, then there isn’t so much meaning to read into the accumulation. It has become standard procedure for these exchanges to have proof of reserves as evidence of enough liquidity on their platform. These reserves are usually proportional to the users’ assets on the exchange. 

Surprisingly, unknown whales have managed to move 300 billion Shiba Inu tokens from Binance in one big swoop. The reason for such a significant transfer is questionable given the sheer size of this token migration.

Everyone in the cryptocurrency community is wondering who the address owner is and what they’re up to after this unusual move sent shockwaves across the ecosystem.

Examining the wallet’s past activity in more detail indicates a pattern of major purchases from Binance that occurred over a few weeks prior to this noteworthy transfer.

Shiba Inu Whale Surge: Decoding The Unexpected Spike On Binance

Now, the question is: Who is responsible for this enormous transfer?

Verified in the immutable ledger of the blockchain, the transaction hash attests to the successful transfer. Despite being a cost-effective maneuver, with a transaction charge of only $3.73, it signifies a substantial change in the meme coin’s distribution.

The recent whale accumulation of SHIB is unexpected considering that the volume of major transactions on the chain has supposedly decreased by 90% since early November.

SHIB Downtrend Sparks Speculation: Unpacking Strategic Moves

Over the previous few months, Shiba Inu has experienced frequent losses. There have been rumors circulating that many SHIB holders are losing money. As of this writing, the price of Shiba Inu is $0.000008, down 1.0% in the last 24 hours.

Market observers have interpreted this as an indication that the market is gradually shifting from Shiba Inu to other cryptocurrency coins.

The aforementioned movement of SHIB has demonstrated activity in recent weeks with a trend of significant purchases from Binance.

This pattern points to a potential source of strategic amassing that could affect the coin’s value: provisioning of liquidity, investments, or even planning for additional token burns.

For the purpose of increasing scarcity and maybe influencing the coin’s value, token burns—the purposeful destruction of a portion of the cryptocurrency supply—have become a popular practice in some crypto projects.

Shiba Inu whale stockpiling is essential to the cryptocurrency’s ability to sustain upward movements. SHIB may benefit from this most recent action, but more could be needed to maintain the meme-coin’s momentum moving ahead.

In other unexpected news, Upbit, the top cryptocurrency exchange in South Korea, saw a surge in Shiba Inu (SHIB) tokens today, amounting to an astounding 84 billion SHIB, or more than $700,000.

The movements of today are noteworthy because they make up more than 25% of the SHIB volume on Upbit. This has raised suspicions regarding the intentions of the exchange and whether the large Korean CEX is getting ready for a big development involving Shiba Inus.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Freepik

The Bitcoin price has risen above $38,000 in the last few hours, and for the first time this year closed a 4-hour candle above this crucial price level – a very bullish sign that BTC could rise further. These are reasons behind BTC’s latest price surge:

#1 Anticipation Of Spot Bitcoin ETF Approval

The recent uptick in the Bitcoin price can probably be attributed in part to developments around the potential approval of a spot Bitcoin ETF. Bloomberg ETF analyst James Seyffart stated on X, “Okay the window for potential spot Bitcoin ETF approval is looking like it’s gonna be between Jan 5 & Jan 10 2024.”

This observation follows the SEC’s announcement about publishing the Franklin/Hashdex delays today, December 1. Scott Johnsson, a lawyer at Davis Polk, agreed with Seyffart, “This puts the comment period ending at January 5. Ark/21 Shares deadline on January 10.”

Moreover, Nate Geraci of ETF Store brought further optimism with his comments yesterday, “Another meeting yesterday between Grayscale & SEC. Absolutely fascinated to see how this all plays out, especially timing of GBTC uplisting vs launch of competing spot BTC ETFs. Btw, if you’re tired of me tweeting about this, good news is I think we’re approaching the finish line.”

These developments suggest that a spot Bitcoin ETF is only a question of when, not if. They also show a growing consensus between ETF applicants and the SEC, which only wants to fine-tune all proposals before approving a batch or all 12 applicants (besides Pando Asset) at once.

#2 MicroStrategy Will Buy More BTC

Another driving force could be MicroStrategy’s unwavering commitment to Bitcoin. The company’s latest filing revealed an additional purchase of 16,130 BTC, amounting to roughly $608 million. This acquisition, at an average price of about $36,785 per Bitcoin, takes MicroStrategy’s total holdings to 174,530 BTC.

However, what was even more important was the news that MicroStrategy is already planning its next Bitcoin buys. The company has entered into an agreement to offer up to $750 million worth of class A common stock, a move interpreted by many as a preparation for further Bitcoin purchases.

This means that Saylor will buy even more BTC in the coming weeks or months, definitely making a positive impact on BTC price. The news is definitely bullish for the price, while some traders might want to front run it.

#3 Market Dynamics

The current market dynamics surrounding Bitcoin’s price surge have been closely scrutinized by leading crypto analysts, revealing nuanced insights into the behavior of market participants. Crypto analyst Skew highlighted a specific pattern in the buying behavior, indicating a strategic approach by market players.

He stated “Fairly obvious taker twap bidding on the corn here. Open Interest & Delta: Looking like both longs & shorts are chasing this move.” This comment suggests that both bullish and bearish traders are actively participating, leading to heightened market volatility and price movement.

Additionally, Skew pointed out specific activity on the Binance spot market: “Still persistent spot supply around mid $38K area. Bid driven by spot takers & limit asks were filled. If takers can sustain bid momentum & clear that supply then could be looking for limit chasing on the bid for higher prices.”

Byzantine General, another crypto analyst, found another major driver for the recent price action. He stated, “Spot markets are still trading at a premium, not just Coinbase. And the fact that USD markets are consistently trading a lot higher than USDT markets makes me think that perhaps new money is flowing in.”

#4 Breakout Move On Lower Time Frames

From a technical standpoint, crypto pundit Scott Melker observed a breakout move on the lower time frames. He noted, “Bitcoin breaking out on low time frame. “ In the 15-minute chart, Bitcoin has been trading within a descending channel, a pattern marked by sequential lower highs and lower lows. This typically reflects a bearish trend.

However, a few hours ago, the Bitcoin price has managed to break above the upper boundary of this channel, a movement that is often interpreted as a potential reversal signal. The low time frame breakout is significant for traders because it indicates a shift in short-term sentiment, possibly setting the stage for a continued upward trajectory in the higher time frames.

At press time, BTC traded at $38,326.

Polkadot (DOT) is gaining pace above the $5.25 resistance against the US Dollar. The price could surge further toward the $5.85 and $6.00 levels.

DOT is gaining pace above the $5.25 resistance zone against the US Dollar.
The price is trading above the $5.30 zone and the 100 simple moving average (4 hours).
There is a key bearish trend line forming with resistance near $5.55 on the 4-hour chart of the DOT/USD pair (data source from Kraken).
The pair could gain bullish momentum if there is a close above $5.55 and $5.60.

Polkadot Price Regains Strength

After consolidating above the $5.00 support, DOT price started a decent increase. The price was able to clear the $5.20 and $5.25 resistance levels to move into a positive zone, like Bitcoin and Ethereum.

Polkadot cleared the 100 simple moving average (4 hours) and tested the $5.60 resistance. A high is formed near $5.58 and the price is now consolidating gains. It is up nearly 5% and shows signs of more gains in the coming sessions.

DOT price is now trading above the $5.30 zone and the 100 simple moving average (4 hours). Immediate resistance is near the $5.55 level. There is also a key bearish trend line forming with resistance near $5.55 on the 4-hour chart of the DOT/USD pair.

Source: DOTUSD on TradingView.com

The next major resistance is near $5.60. A successful break above $5.60 could start another strong rally. In the stated case, the price could easily rally toward $5.85 in the near term. The next major resistance is seen near the $6.00 zone.

Are Dips Supported in DOT?

If DOT price fails to continue higher above $5.55 or $5.60, it could start a downside correction. The first key support is near the $5.35 level.

The next major support is near the $5.30 level or the 61.8% Fib retracement level of the upward move from the $5.11 swing low to the $5.58 high, below which the price might decline to $5.10. Any more losses may perhaps open the doors for a move toward the $5.00 support zone.

Technical Indicators

4-Hours MACD – The MACD for DOT/USD is now gaining momentum in the bullish zone.

4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is now above the 50 level.

Major Support Levels – $5.30, $5.10 and $5.00.

Major Resistance Levels – $5.55, $5.60, and $6.00.

Ethereum price remained well-bid above the $2,020 level. ETH is now rising, and the bulls seem to be aiming for a move toward the $2,200 level.

Ethereum is making a fresh attempt to clear the $2,100 and $2,120 resistance levels.
The price is trading above $2,050 and the 100-hourly Simple Moving Average.
There was a break above a major contracting triangle with resistance near $2,055 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could gain bullish momentum if it clears the $2,120 resistance zone.

Ethereum Price Regains Strength

Ethereum price started a downside correction below the $2,050 level. ETH tested the $2,020 support, where the bulls took a stand. A low was formed near $2,019 before the price climbed higher, like Bitcoin.

The price cleared the $2,050 resistance zone. There was a break above a major contracting triangle with resistance near $2,055 on the hourly chart of ETH/USD. The pair climbed above the 50% Fib retracement level of the downward move from the $2,126 swing high to the $1,986 low.

Ethereum is now trading above $2,050 and the 100-hourly Simple Moving Average. On the upside, the price is facing resistance near the $2,095 zone or the 76.4% Fib retracement level of the downward move from the $2,126 swing high to the $1,986 low.

The first key resistance is near the $2,100 level. The next resistance sits at $2,120. A clear move above the $2,120 level could send the price toward the $2,200 resistance zone.

Source: ETHUSD on TradingView.com

The next resistance is near $2,250, above which the price could aim for a move toward the $2,320 level. Any more gains could start a wave toward the $2,440 level.

Another Decline in ETH?

If Ethereum fails to clear the $2,100 resistance, it could start another decline. Initial support on the downside is near the $2,055 level. The next key support is $2,040.

The main support is now near $2,000. A downside break below $2,000 might start a steady decline. The key support is now at $1,920, below which there is a risk of a move toward the $1,880 level in the near term.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $2,050

Major Resistance Level – $2,120

Bitcoin price is consolidating above the $37,500 support zone. BTC could attempt a strong increase if there is a clear move above the $38,400 resistance.

Bitcoin is still struggling to clear the $38,500 resistance zone.
The price is trading above $37,400 and the 100 hourly Simple moving average.
There is a major bullish trend line forming with support near $37,450 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start another increase and attempt to clear the $38,500 resistance.

Bitcoin Price Remains Supported

Bitcoin price is still trading well below the $38,500 resistance zone. The last swing high was formed near $38,419 before there was a downside correction.

BTC declined below the $38,000 level. There was a move below the 23.6% Fib retracement level of the key increase from the $36,721 swing low to the $38,419 high. The price even spiked below the $37,650 support but downsides were limited.

A low was formed near $37,501 and the price is now consolidating. It is now testing the 50% Fib retracement level of the recent decline from the $38,419 swing high to the $37,501 low.

Bitcoin is now trading above $37,400 and the 100 hourly Simple moving average. There is also a major bullish trend line forming with support near $37,450 on the hourly chart of the BTC/USD pair. On the upside, immediate resistance is near the $38,000 level.

The first major resistance is forming near $38,050 or the 61.8% Fib retracement level of the recent decline from the $38,419 swing high to the $37,501 low, above which the price might revisit the $38,400 resistance zone.

Source: BTCUSD on TradingView.com

A close above the $38,400 resistance might start a fresh rally. The next key resistance could be near $39,200, above which BTC could rise toward the $39,500 level. Any more gains might send BTC toward the $40,000 resistance.

More Downsides In BTC?

If Bitcoin fails to rise above the $38,050 resistance zone, it could start another decline. Immediate support on the downside is near the $37,600 level or the 100 hourly SMA.

The next major support is near $37,450 and the trend line. If there is a move below $37,450, there is a risk of more downsides. In the stated case, the price could drop toward the $36,720 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $37,600, followed by $37,450.

Major Resistance Levels – $38,050, $38,400, and $39,500.

Bitcoin is still the leading proof of work blockchain and has already made massive moves over the years, with countless millionaires at the same time. However, with the price of Bitcoin having moved so much already, the upside is fairly limited, especially for crypto investors who do not have ample buying power to make a Bitcoin investment worth their while.

In this vein, altcoins offer the best opportunity for smaller and retail investors to make the most money. But not just any altcoins; these coins also employ the proof of work mechanism, just like Bitcoin, making them a good choice, especially when they are newly launched.

QUBIC: A Proof Of Work Coin Like Bitcoin

The Qubic (QUBIC) coin is already making the rounds on social media platforms such as X (formerly Twitter) and with good reason. The blockchain uses a proof of work mechanism like Bitcoin. Led by IOTA co-founder Dominik Schiener, it has already garnered a reasonable following based on Schiener’s reputation.

The coin is still trading well below $0.1 which could make it a good buy in the long run. With a current circulating supply of 71.425 trillion, its current market cap is currently sitting at around $200 million. 16% of the total supply has reportedly been burned already.

Nexa (NEXA) Leads POW Altcoins

Next (NEXA) is another proof of work blockchain, but unlike Bitcoin, it uses the UTXO Layer. This means that Nexa is a proof of work blockchain that is also able to support native tokens and smart contracts. To mitigate the problem of scalability often encountered by the likes of Bitcoin and Ethereum, Nexa employs Signatures and UTXO lookups.

The Nexa token is currently trending below one cent with an around $35 million market cap at the time of writing. Given the kind of run that Kaspa (KAS) had even through a bear market, it puts in perspective the opportunity that lies with this token.

Firo (FIRO)

Firo (FIRO) is another proof of work coin that also holds a lot of promise among the altcoins that fall into this category. It rebranded from ZCoin and is a privacy-first coin, meaning it mixes two of the most sought-after attributes right now in the crypto market.

Its price is $1.87 with a fully diluted market cap of under $40 million. This makes it the coin on this list with the lowest fully diluted market cap. Its price has been relatively stable for the last week, which could suggest that accumulation is happening ahead of a possible breakout.

On December 1, dYdX, the layer-2 decentralized exchange, will unlock 150 million DYDX worth roughly $478 million to early investors and core team members. This substantial unlock has raised concerns among investors, who fear the influx of fresh tokens could substantially increase supply.

If this is not matched by high demand, DYDX prices will likely pull back, reversing recent gains posted over the past few trading weeks. 

DYDX Worth $500 Million To Hit The Market

According to Bubblemaps data, out of the $478 million worth of DYDX, over 50% is allocated to venture capitalists (VCs), including Paradigm and Polychain. Zooming back and looking at their data, VCs seeded $100 million to the layer-2 decentralized exchange.

These tokens were distributed to private investors through five wallets, including Coinbase Custody, Investor Distribution, and the Foundation Wallet.

Currently trading at over $3, DYDX is at February 2023 levels and technically bullish. However, the upcoming token unlock casts a shadow over the token’s positive momentum.

Notably, dYdX, postponed its token unlock by ten months. According to data, the humongous DYDX unlock was initially postponed from February to December 2023. Following this move, DYDX prices edged higher.

Even so, prices pulled back before consolidating in the better part of Q2, Q3, and early Q4 2023. There was a pronounced rally in late October 2023 as DYDX rose, riding the optimism across the crypto board.

At spot rates, DYDX is up 82% from October 2023 highs. However, looking at price action, bears are retesting the 20-day moving average of the BB. A break below this level might trigger a sell-off, pushing prices back to October 2023 highs.

Which Way Could Take The Price Action?

While it is likely that prices could contract ahead or after the unlocking event, the team has devised a way of mitigating the expected selling pressure. To illustrate, the initial unlock will release 30% of the total amount. Afterward, there will be monthly equal releases over the next three years. 

 For optimists, however, that a significant portion of these tokens will go to the team, and investors could end up supporting prices. Team members and venture capitalists trade less frequently than retail investors, meaning the expected liquidation pressure, if any, could be limited.

Moreover, some team members and even early investors might consider re-staking DYDX from their infrastructure, giving them more control. 

Even with this release, crypto participants are upbeat, anticipating Bitcoin prices to track higher ahead of the expected spot Bitcoin ETF approval by the Securities and Exchange Commission (SEC). More tailwinds could result from the Bitcoin halving event in early Q2 2024.

In the ongoing Spot Bitcoin ETF mania, Pando has joined the race aiming to seize the opportunities that may arise following the potential approval of BTC Spot ETFs by the US SEC. 

Pando Submits Spot Bitcoin ETF Filing

Switzerland-based asset management company, Pando Asset has become the latest entrant into the Spot Bitcoin Exchange Traded Fund (ETF) race. The investment firm officially submitted its Spot BTC ETF filing to the United States Securities and Exchange Commission (SEC) on November 29.

The news of the late filing comes as a surprise to the crypto space, as the final dates for the SEC’s decision on the Spot Bitcoin ETF approval approach. 

In the filing, Pando Asset provided a lengthy outline of its Spot BTC ETF, PBTC, highlighting its purpose, offerings, net asset value, regulatory compliance, tax considerations, and other factors. 

“The Trust was formed as a Delaware statutory trust on November 16, 2023. The purpose of the Trust is to own bitcoin transferred to the Trust in exchange for Shares issued by the Trust. Each Share represents a fractional undivided beneficial interest in the net assets of the Trust. The assets of the Trust consist primarily of bitcoin held by the Bitcoin Custodian on behalf of the Trust,” the filing stated. 

Pando’s BTC Spot ETF brings the total number of filed Spot Bitcoin ETFs in the crypto space to 13. Among them are applications from prominent financial institutions such as Grayscale, BlackRock, Ark Invest, WisdomTree, and others.

The crypto space is presently anticipating the approval of these ETFs, as many crypto experts have predicted that a Bitcoin Spot ETF debut could result in massive inflows for BTC which may trigger a bull run. 

Spot ETF Approval Prediction

While the crypto community awaits the US SEC’s final verdict on Spot Bitcoin ETF approval, a Bloomberg analyst, James Seyffart has predicted a favorable approval outcome for BTC Spot ETFs.

According to Seyffart, Spot Bitcoin ETFs could see potential approval by January 10, 2024. His prediction has also been backed by another ETF specialist, Senior Bloomberg analyst, Eric Balchunas who gives a strong 90% likelihood for the approval of Spot Bitcoin ETFs. 

“People asking me if we changed the odds. No, we are still holding the line at 90% odds of approval by Jan 10 (aka this cycle), the same odds we’ve had for months (before it was cool/safe). What we are watching for now: more amended/final filings to roll in and clarity on in-kind vs cash creates,” Balchunas stated.