Blockchain

Fidelity, a prominent asset management firm with over $4.5 trillion in assets under management, has formally submitted an application for the establishment of a Spot Ethereum Exchange-Traded Fund (ETF).

The decision is a response to the recent action taken by BlackRock, an asset management company, which submitted their application for an Ethereum Exchange-Traded Fund (ETF) last week.

Fidelity Is 7th On The List

Fidelity Investments has recently positioned itself as the seventh asset management in the United States to pursue the aforementioned product.

Based on the SEC’s Form 19b-4 filing, the Fidelity Ethereum ETF is called the “Fidelity Ethereum Fund” and is designed to track the performance of Ethereum. If approved, the ETF will trade in accordance with the BZX Rule, the company disclosed.

Update: @Fidelity joins the spot #ethereum ETF race by filing a 19b-4 with @CBOE https://t.co/rxNEzpzh3g pic.twitter.com/o96XspPDEP

— James Seyffart (@JSeyff) November 17, 2023

Each share shall reflect a portion of the undivided beneficial interest in the net assets of the Fidelity ETH Fund, the Registration Statement shows. ETH held by the New York Department of Financial Services on behalf of the Fidelity Ethereum Fund will make up the Trust’s assets.

The Importance Of Spot ETFs

Spot ETFs play a pivotal role in significantly expanding the reach of cryptocurrencies to the average investor, aligning with the increasingly emphasized goal of asset managers such as BlackRock, Grayscale, and other industry players.

Despite the concerted efforts of regulatory bodies like the SEC to counteract this trend, the push for democratizing access to crypto investments has remained steadfast.

At the forefront of the crypto market, Bitcoin and Ethereum stand as two of the most prominent digital assets, commanding substantial trade volumes and market values.

Drawing a parallel with Bitcoin, Ethereum stands poised for a potentially significant surge in value within the next 24 hours, driven by the announcement of Fidelity’s application, marking a development that could significantly impact the cryptocurrency landscape.

ETH Up 6.2% In The Weekly Chart

At the time of writing, ETH was trading at $$1,930, up 2.3% in the last 24 hours, and sustaining a decent 6.2% increase in the last seven days, data from Coingecko shows.

Meanwhile, citing a section of the court ruling in the legal battle between Grayscale and the SEC, Fidelity Investments is optimistic that it will receive permission.

Update: @Fidelity joins the spot #ethereum ETF race by filing a 19b-4 with @CBOE https://t.co/rxNEzpzh3g pic.twitter.com/o96XspPDEP

— James Seyffart (@JSeyff) November 17, 2023

The court argued that the SEC lacked a reasonable justification for denying Grayscale’s request to convert its well-known Bitcoin Trust into a full-fledged Bitcoin Exchange Traded Fund (ETF), particularly in light of the prior approval of BTC-linked futures.

As a result, the court ordered a review of the SEC’s ruling, and current information suggests that the SEC and Grayscale are still in talks over the suggested product.

Emerging Prominence Of Crypto Assets

Fidelity has expressed its admiration for Ethereum in a vocal manner. In a recent discussion, Chris Kuiper, the Director of Research at the firm, examined the emerging prominence of digital assets and projected their potential for further expansion in the foreseeable future.

The company’s hope that ETH would be used for large-scale transactions in the future is further expressed in Fidelity’s Spot Ethereum ETF application.

(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 Consensys

Tech firm Republic has recently announced its mission to democratize private market investing, with the selection of Avalanche as the platform for launching its profit-sharing digital asset, the Republic Note (R/Note).

The R/Note is a revenue-sharing digital security that is backed by Republic’s private equity portfolio, which includes over 750 assets.

Republic And Avalanche Forge Partnership

According to Republic’s announcement, Avalanche was chosen for several key reasons. Firstly, its scalability and speed ensure that Republic Note holders can enjoy seamless and cost-effective transactions. 

Notably, Avalanche has established partnerships with renowned brands like Amazon Web Services and Mastercard, highlighting its technical capabilities.

Additionally, Republic plans to launch a dedicated Subnet on Avalanche next year, offering a purpose-built network specifically designed for the Republic Note. 

This will provide enhanced security, privacy, and regulatory compliance, creating a robust digital security environment.

Mission alignment between Republic and Ava Labs, the team behind Avalanche, is another crucial factor. Per the announcement, both entities share a commitment to fostering a more inclusive future for financial markets through tokenization.

Furthermore, Avalanche’s “eco-friendliness” sets it apart from other blockchains, consuming significantly less energy, per the announcement. 

The pre-sale of Republic Notes has already attracted participation from thousands of individual retail investors, resulting in pre-sales exceeding $30 million. The public listing of the Republic Note is scheduled for December. 

Optimism For AVAX Price

The partnership between Republic and Ava Labs is anticipated to have a positive impact on the AVAX price. The launch of the Republic Note on Avalanche’s platform establishes a strong foundation for expanding its reach to a global audience of investors. 

Despite a 5% decline in the past 24 hours, AVAX has outperformed major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), with a 130% rally over the past 30 days, positioning itself as one of the industry’s top performers.

However, it is important to note that AVAX has recently undergone a correction, and its ability to surpass the $20.64 level will be crucial in determining its prospects amidst the ongoing bullish momentum.

Resistance levels at $21.59 and $22.74 have proven challenging for AVAX to breach and consolidate since February 2023.

Overall, the forthcoming launch of the Republic Note on Avalanche’s mainnet is a significant milestone in making the asset accessible to pre-sale participants who have contributed over $30 million. 

It remains to be seen whether this partnership can further bolster AVAX’s price and reinforce the positive trend observed over the past 30 days, potentially driving AVAX to new yearly highs in 2023.

The collaboration between Republic and Ava Labs underscores their shared vision of democratizing access to private markets through tokenization. 

Featured image from Shutterstock, chart from TradingView.com

Bill Morgan, an XRP advocate, has recently expressed skepticism regarding the lofty price targets for XRP circulating on social media. While the digital asset community is often rife with bullish predictions, Morgan’s realistic outlook presents a grounded perspective on the potential of XRP’s value.

The Parabolic Price Move: A Myth Or Reality?

Since the significant ruling in the SEC v. Ripple case on July 23, which brought legal clarity to XRP, the asset has seen an uptick in its trajectory.

The ruling led to multiple exchanges relisting XRP and forming strategic partnerships. Despite these developments, Morgan observed that the price of XRP has only modestly increased from $0.46 to $0.62.

Three great outcomes in the court case since 23 July 2023, legal clarity, multiple exchange relistings, more Ripple partnerships and increasing ODL use and myriad other positive news have moved the price from $0.46 to $0.62 in that time. Better than some coins not as good as… https://t.co/NMwiWqfdWt

— bill morgan (@Belisarius2020) November 17, 2023

Morgan’s analysis delves deeper into the relationship between XRP’s market behavior and Bitcoin (BTC). Contrary to the popular belief that XRP might soon undergo a parabolic price increase, Morgan noted:

We keep being shown charts supporting claims that a parabolic breakout is imminent but price still seems to just go up and down with Bitcoin and generally loses ground on the XRP/BTC pair.

This observation particularly challenges the narrative of a forthcoming surge in XRP’s value, often depicted in the community’s discourse.

The idea of XRP achieving a three-figure value seems even more improbable to Morgan. He questions the likelihood of such a significant increase in XRP’s price in the short, medium, or long term.

While the crypto market is known for its unpredictability and rapid changes, Morgan’s post suggests expecting a meteoric rise in XRP’s price might be overly optimistic. His stance encourages a more measured and realistic approach to understanding XRP’s future market performance.

XRP Latest Price Action

Meanwhile, XRP’s market performance has seen significant fluctuations recently. After an initial surge alongside the broader bullish crypto market trend, the asset has faced a downturn, with a 10% decrease over the past week.

In the last 24 hours alone, XRP’s price has dipped by 4%, currently trading around $0.60, down from its weekly high of $0.69.

This decline is also reflected in its trading volume, which has dropped from $3.5 billion to approximately $1.43 billion, indicating a notable decrease in trading activity.

Featured image from Unsplash, Chart from TradingView

Cardano may not be a top gainer in the crypto market but that does not mean that it has fallen behind. During the altcoin rally, the price of Cardano’s native coin ADA has gone from a low of $0.25 to a high of almost $0.4 before correcting back downwards. This positive trend has been preserved even through the crypto market dip and it seems that there is only one thing in the way of Cardano’s rise to a new yearly high.

Falling Wedge Pattern Holds Back Cardano

According to a crypto analyst on the TradingView website, the one thing that is holding back the Cardano price from mounting a full-blown rally is a falling wedge pattern which it is currently stuck in. This falling wedge pattern has appeared as the ADA price has retraced and then eventually recovered.

The crypto analyst who goes by CobraVanguard identifies this falling wedge pattern as the important pattern to break for ADA. As with any cryptocurrency, if ADA is able to break out of this pattern, then a massive rally could follow, ending in a high peak.

CobraVanguard’s price target after breaking out of this falling wedge pattern is over the $0.7 level. Following this trend would mean that the ADA price could rise another 100% from its current level, putting it on a recovery path similar to that of Solana (SOL).

The initial target for this recovery is at $0.57 where a small retrace is expected. Afterward, the crypto analyst sees another surge that takes it straight through the $0.78 mark. Then just below $0.8 is where resistance is expected.

ADA Whales Ramping Up Their Activity

As the bull case for Cardano continues, the ADA whales are not being left in the sidelines. As data from IntoTheBlock shows, these large investors have been increasing their activities across the network, especially in the last day.

The number of large transactions on the Cardano network, that is transactions carrying $100,000 or more, jumped significantly in the 24-hour period. November 15 numbers came out to 4,320 whereas this number grew to 6,110 on November 16.

Naturally, the transaction volumes of these large investors are also up during this time. It rose from around $7.2 billion on Wednesday to more than $10.46 billion on Thursday, with more than 27.2 billion ADA moved across these transactions.

These trends among these large investors could suggest that the anticipation for a bullish run isn’t localized to just smaller investors alone. So whales could be waiting for better prices before they begin profit-taking.

In a recently published report by CoinShares, analyst James Butterfill delves into the relationship between inflows into Bitcoin exchange-traded funds (ETFs) and changes in the Bitcoin price. 

The report addresses the critical question of how much inflow into ETFs could be anticipated upon launching a Bitcoin spot ETF in the US and the potential impact of these flows on the Bitcoin Price.

Bitcoin ETFs Could Attract $14.4 Billion Inflows

Butterfill highlights Galaxy’s analysis, which estimates that the United States has approximately $14.4 trillion in addressable assets. Assuming a conservative scenario where 10% of these assets invest in a spot Bitcoin ETF with an average allocation of 1%, it could result in approximately $14.4 billion of inflows within the first year. 

Per the report, this would mark the largest inflows on record, surpassing 2021’s inflows of $7.24 billion, which accounted for 11.5% of assets under management (AuM). 

However, it is worth noting that in 2020, inflows reached $5.5 billion, representing a higher 21.6% of AuM, while Bitcoin’s price surged by 303% compared to 60% in 2021.

The report suggests a correlation between inflows as a percentage of AuM and price changes. Inflows coincide with rising prices, indicating that many ETF investors engage in momentum trading. Conversely, during periods of price stagnation, inflows have tended to moderate. 

However, it is important to note that exchange-traded product (ETP) investors do not necessarily lead price action, as evidenced by volume data indicating that ETP volumes represent an average of 3.5% of daily Bitcoin trading turnover on trusted exchanges since 2018.

Bitcoin Price Surge Predicted

By analyzing weekly ETP flows and their percentage of AuM, the report identifies a trend with a coefficient of determination (R2 ) value of 0.31, suggesting a discernible relationship between flows and price changes. 

Utilizing this trendline, the report estimates that the aforementioned $14.4 billion of inflows could potentially drive the price of Bitcoin up to $141,000 per coin.

Nevertheless, accurately predicting the precise level of inflows upon the launch of spot ETFs remains challenging. The report acknowledges the difficulty in determining the exact magnitude of inflows. 

It emphasizes that regulatory approval and corporate acceptance are gradual processes due to Bitcoin’s perceived complexity, which may require corporations and funds to build knowledge and confidence before committing to investment.

The potential wall of demand that could materialize following the introduction of a spot-based ETF is uncertain. While such ETFs offer portfolio diversification and enhanced Sharpe ratios, regulatory approval and corporate adoption may take time due to perceived complexities associated with Bitcoin. 

Ultimately, CoinShares believes that Corporations and funds may require an extended period to familiarize themselves with the asset class and gain confidence before entering the market.

All in all, the CoinShares report sheds light on the potential impact of Bitcoin ETFs on the price of BTC. While it is challenging to precisely determine the level of inflows and their subsequent effect on the market, the report suggests that launching a Bitcoin spot ETF in the US could potentially drive the price of Bitcoin to US$141,000 per coin. 

Currently, Bitcoin (BTC) is consolidating above the significant psychological level of $36,000. Over the past 24 hours, it has experienced a minimal decrease of 0.2%, while showing a 1.3% increase within the 1-hour time frame.

Featured image from Shutterstock, chart from TradingView.com 

A recent surge in Cardano (ADA)’s market value has caught the attention of both investors and analysts alike. Over the past 24 hours, ADA has seen a 7% increase, trading at approximately $0.39 at the time of writing.

This uptick in value is not just a momentary blip on the radar but a part of a broader trend that mirrors the 2018-2020 consolidation phase of ADA, according to a well-known crypto trader and analyst, Ali.

Interestingly, the analyst noted this current consolidation phase comes without the dramatic influence of an event like the Covid-19 crash.

Cardano (ADA) To Skyrocket In December

Ali has expressed insights on X (formerly known as Twitter), drawing parallels between ADA’s current market behavior and its historical trajectory. If these patterns hold, Ali suggests that ADA might soon break through the $0.45 resistance level, potentially as early as the first week of December.

#Cardano‘s current consolidation trend eerily mirrors the 2018-2020 phase without the COVID-19 crash!

If so, $ADA could break through the $0.45 resistance around the first week of December. The upswing could send #ADA to $0.75 by late December.

Looking to trade this setup? Head… pic.twitter.com/u3KzOsZj2F

— Ali (@ali_charts) November 16, 2023

Currently, ADA is trading at around $0.39. Despite a recent uptick in its weekly performance, the asset has experienced a minor pullback from its 24-hour high of $0.40. Although this peak approaches the resistance level highlighted by analyst Ali, ADA appears poised for a potential rally.

This is indicated by a significant increase in its daily trading volume, which has risen by over $200 million in the past day, suggesting heightened trading activity for the crypto.

Furthermore, as the year approaches, Ali’s prediction for ADA’s price to reach as high as $0.75 during the festive season seems to gain credibility with the recent surge.

If ADA continues on this trajectory, it could signify a notable milestone in its journey and potentially reshape investor perspectives on Cardano’s role in the competitive crypto landscape.

Media Spotlight And Ethereum’s Alleged Imitation

It is worth noting that the recent spotlight on ADA can be partly attributed to the statements made by Steven Nerayoff, a prominent figure in the crypto sphere known for his critical views on Ethereum. Nerayoff’s declaration of ADA as his “top pick in crypto” has fueled media discussions and increased interest in Cardano.

His recent public criticism of Ethereum, accusing the platform of imitating Cardano’s innovations, has added a layer of intrigue to the ongoing narrative. This controversy particularly concerns Ethereum revisiting its Plasma scaling solution, first introduced in 2017.

What timing! This is why I just said @Cardano_CF is my top pick in crypto. You will hear on the recording me telling @VitalikButerin he made a major mistake in getting rid of @IOHK_Charles & should bring him back.

Are the clueless smug @ethereum cultists who got rid of Charles… https://t.co/x5w6yDRB4M

— Steven Nerayoff (@StevenNerayoff) November 15, 2023

Members of the Cardano community have not hesitated to point out the similarities between Ethereum’s Plasma and Cardano’s Hydra, a Layer-2 scaling solution. They argue that Plasma’s recent developments closely resemble Hydra’s functionalities.

Whether substantiated or not, such claims contribute to the broader conversation about innovation and originality in the blockchain space.

Featured image from Unsplash, Chart from TradingView

BlackRock has joined the Ethereum Spot ETF race as the asset management company has officially applied to the US SEC and is currently waiting for approval. 

BlackRock Files For An Ethereum Spot ETF

Following its Spot Bitcoin ETF filing, BlackRock, an American investment company has taken the proactive step by filing an Ethereum Spot Exchange Traded Fund (ETF) with the United States Securities and Exchange Commission (SEC). 

The asset management company submitted the application on November 15, however, BlackRock has stated it formed the Trust as early as November 9. 

According to BlackRock, the iShares Ethereum Trust would be used to facilitate the ownership of Ether through the issuance of shares, allowing investors to own a fractional undivided beneficial interest in the net assets of the Trust.

“The Trust was formed as a Delaware statutory trust on November 9, 2023. The purpose of the Trust is to own ether 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 ether held by the Ether Custodian on behalf of the Trust,” BlackRock said in its filing. 

Presently, the US SEC has not approved any Ethereum Spot ETF filing as well as Spot Bitcoin ETF applications. The regulatory body has delayed multiple applications to be reviewed from January 2024. 

The crypto community has remained enthusiastic that the regulatory agency would eventually approve the pending ETF applications, as this could significantly push the growth and development of the crypto ecosystem as well as the cryptocurrencies involved. 

Ethereum Price Surges

The price of Ethereum is on the rise following BlackRock’s Ethereum ETF filing. The cryptocurrency’s price climbed almost 2% moving to $2,080 at some point following the announcement of the filing.

The sharp reaction has caused a stir in the cryptocurrency community, as investors gear up for a potential bull run if the US SEC gives its official authorization of Ethereum Spot ETFs. 

The price of Bitcoin has also been growing steadily as new companies apply for Spot Bitcoin ETFs. Currently, Bitcoin’s price is trading at $36,408, while ETH is down from its initial surge and trading at $1,952.

The crypto ecosystem is presently watching closely for more updates on the US SEC’s ETF filing approvals and the price changes that follow them.

The Bitcoin price rally is losing strength as the cryptocurrency returns to its support levels following weeks of bullish momentum. In the short term, the landscape seems sloped to the downside, but an analyst presented the main reasons why the rally has just begun.

As of this writing, Bitcoin (BTC) trades at $36,550 with a 2% loss in the last 24 hours. Over the previous week, the cryptocurrency recorded similar losses following the general sentiment in the market. Only Solana (SOL) preserved its gains during the same period.

Behind Bitcoin’s Surge: Decoding the Four Key Factors

According to a report from Deribit Insight, posted by Markus Thielen, several forces are pushing Bitcoin towards new yearly highs. These forces remain intact despite the recent price action.

Among the reasons behind the current BTC price rally, the analyst included speculations around the U.S. Securities And Exchange Commission (SEC) Bitcoin Exchange Traded Fund decision, traders’ appetite for leverage, fiat inflows through stablecoins, and increased fee generation within the Bitcoin network.

SEC’s Decision On The Bitcoin ETFs

A significant driver is the anticipation surrounding the SEC’s approval of a spot Bitcoin ETF. Despite passing the second deadline in mid-October without any announcement, the market remains watchful, with the third deadline set for mid-January 2024. The uncertainty surrounding this decision has led to fluctuations in implied volatility, influencing Bitcoin’s value.

Leveraged Positions and Futures Market

The demand for leveraged positions in Bitcoin, primarily through perpetual futures markets, indicates a strong interest in trading the BTC/USDT pair. This was evident when the funding premium reached an annualized +28% on November 13.

In addition, the BTC options market saw an uptick in realized volatility. The increase in the metric signals risk appetite for investors.

The chart below shows that the metric approaches its 5-year average. However, the analyst believes that volatility should decline as the year ends, suggesting that Bitcoin will follow a sideways trajectory in the short term.

Influx of Fiat Via Stablecoins

Another crucial aspect is the substantial fiat inflow into cryptocurrencies, mainly through Tether’s USDT, indicating fresh capital entering the crypto space. With over $3.8 billion moving into crypto in the last 30 days, this influx has had a notable impact, especially on altcoins, reflecting growing investor confidence.

Increased Bitcoin Network Activity

The Bitcoin network’s fee generation signals heightened activity, reaching $54 million. The report claims that this growth in network usage, partly driven by the resurgence of Ordinals and support from major exchanges, underscores the fundamental strength of the Bitcoin ecosystem.

Despite these positive indicators, the absence of an SEC Bitcoin ETF approval and a reduction in leveraged long positions might prevent Bitcoin from soaring past the $40,000 mark. However, the ongoing solid fiat inflows and a robust, fee-generating Bitcoin network provide grounds for cautious optimism.

Bitcoin’s journey remains captivating as it navigates regulatory decisions, market strategies, and evolving investor sentiment.

Cover image from Unsplash, chart from Tradingview

Crypto analyst Ali Martinez has noted Cardano (ADA) is open to an unprecedented rally. Price activity suggests that Cardano is moving into a state of consolidation, which coincides with a moderate decline in the general cryptocurrency market. 

Nevertheless, the analyst is of the opinion that Cardano’s current consolidation is similar to one it had prior to a 2980% increase. If previous events are any indicator, we could see Cardano mirror this move and spike past its all-time high. 

Recent Cardano Price Action

Cardano is still up by 48.47% in a 30-day timeframe, but it has lost 7.21% of its market value in the past 24 hours and is currently trading at $0.372. According to chart analysis by Ali Martinez, the current consolidation looks similar to the 2018-2020 consolidation phase without considering the COVID-19 crash. 

Following the conclusion of this phase, Cardano witnessed price surges in the first quarter of 2021, one of which was a price surge of nearly 100% in seven days in early February 2021. This marked the beginning of a prolonged bullish run that drove Cardano’s price up by more than 2980% and brought it to its current all-time high of $3.10 in September 2021. 

#Cardano‘s current consolidation trend eerily mirrors the 2018-2020 phase without the COVID-19 crash!

If so, $ADA could break through the $0.45 resistance around the first week of December. The upswing could send #ADA to $0.75 by late December.

Looking to trade this setup? Head… pic.twitter.com/u3KzOsZj2F

— Ali (@ali_charts) November 16, 2023

If analyst Ali Martinez is right, Cardano is on the cusp of a massive breakout that could send the price of ADA skyrocketing in the same manner. A look through his price chart shared on social media estimates the price of Cardano surging past the $6.5 level, a surge of more than 1,600%.

The journey to this price level is certainly not going to be a smooth one. ADA is going to face major resistance at the $0.45 level, which it has to break through to start with. This won’t be easy, as the coin has already tried and failed to break through this barrier in April. It did go over to reach $0.4533 on April 16, but it fell 15% to 0.383 by April 22nd.

According to the analyst, if a strong price spike were to occur now, ADA could break past $0.45 by the first week of December. If Cardano breaks $0.45, the next stop would be $0.75 by late December, a 66% increase from current levels. 

According to Coinmarketcap’s Fear & Greed Index, the crypto market is now at a greed level of 71. For Cardano to mimic the 2021 bull run, the overall crypto market sentiment would need to maintain this very strong bullish and greed level. Interest in altcoins would have to pick up, and Cardano’s progress on key milestones like smart contracts and DeFi would need to drive hype.

Despite a larger portion of Bitcoin’s total supply being “inactive” for over a year, recent data revealed impressive growth in investors holding on to their BTCs during the rally.

Bitcoin HODLing Yawns For Growth With Lesser Supply

On Wednesday, November 15, a crypto analyst known as Root took to his official X (formerly Twitter) handle to share valuable data concerning Bitcoin. A yearly BTC supply chart also accompanied the analyst’s X post.

According to the analyst, a significant part of BTC’s total supply has been inactive for over a year. In addition, the inactive supply has recently reached an all-time high (ATH) of 69%. The analyst stated:

69%, an all-time high, of the #Bitcoin supply, hasn’t been active for over a year. Root stated.

This supply for one year or more is only a portion of a bigger group known as long-term holders (LTHs). One of the two major groups of Bitcoin investors comprises these LTHs, while the other is known as short-term holders (STHs).

Investors holding coins longer than five to six months are classified as long-term holders. Meanwhile, those who hold coins no more than this given time are classified as short-time holders.

In addition, even among LTHs, those who have passed the one-year mark would be considered “reliable gems.” However, this variety currently comprises the majority of the asset’s supply. This seems to have also increased significantly lately, as the graph indicates.

According to statistics, holders are less likely to switch their coins any time the longer they are kept inactive. Due to this, the LTHs tend to be the most devoted segment of the market during periods of Bitcoin’s upsides or downsides.

Double Top Pattern Resurfaces Driving The Crypto To A Downward Trend

BTC has recently formed a double top pattern close to the $38,000 level, causing the token’s drop. The price has since fallen below the 100 hourly Simple moving average and the $36,500 mark.

However, it seems the bulls emerged at the $36,500 mark, giving the token momentum to sustain between $36,000 and $36,500. Following the formation of a low at $36,517, the price is currently correcting losses.

So far, there are no claims that the increase in Bitcoin HODLing has imparted the price growth of BTC. Nonetheless, this recent development sparks potential for the crypto asset over time if this continues.

Currently, the price of BTC is at $36,422 as of the time of writing, indicating a 2.94% decline over the past 24 hours. The asset’s 24-hour trading volume has also experienced an 8% drop, valued at $26,113,638,790, according to CoinMarketCap.