Blockchain

Cathie Wood, CEO of Ark Invest, has reiterated her bullishness on the crypto industry. In a recent interview with CNBC’s “Squawk Box,” Cathie Wood argued that the crypto industry is poised to reach a $25 trillion valuation, given a regulatory breakthrough in the US. Out of the multitude of digital assets on the market right now, Wood sees two cryptocurrencies driving much of that growth: Bitcoin and Ethereum.

Cathie Wood Predicts $25 Trillion Crypto Ecosystem

The entire crypto industry has witnessed unprecedented growth since the middle of October. According to data from Coingecko, the entire crypto market cap has increased 35% from $1.096 trillion on October 15th to a current value of $1.4828 trillion. 

However, Cathie Wood is of the notion that this growth isn’t over, and the industry will reach a $25 trillion valuation in the near future. A $25 trillion market cap means the industry would have to grow a whopping 1,585% from its current level.

Cathie Wood had predicted earlier in 2021 that Bitcoin would climb more than 10 times its value in the next five years, back when the asset was still trading around $50,000. Given that Bitcoin is now selling at around $37,000, the host of Sqwauk Box, Andrew Ross Sorkin, questioned Wood as to whether or not she still stands by her prediction.

“If we have this conversation in ‘25, ‘26, are you on track?” Sorkin asked.  “Yes,” Wood replied.

The CEO did mention that this growth would be feasible only if there were a regulatory green light to allow financial institutions to participate in the cryptocurrency market. She also brought up the role that Spot Bitcoin ETFs will play in the projected spike, particularly BlackRock and Coinbase’s plan to offer a spot Bitcoin ETF in the US.

“I think BlackRock and Coinbase’s partnership is going to be very important,” she said.

Bitcoin And Ethereum The Ones To Look Out For

Wood specifically called out two coins to look out for as catalysts for this growth: Bitcoin and Ethereum, the two leading assets. This isn’t surprising, as these two assets have developed better price stability than most over the years. 

“Our expectation is that the crypto asset ecosystem will be dominated [by Ether and Bitcoin], and it will scale from a little more than $1 trillion today to $25 trillion in 2030 as this new world develops,” Wood explains.

The ARK Invest CEO has been a long supporter of Bitcoin. In another interview, she said she would prefer to hold Bitcoin for 10 years over cash and gold. The CEO is also no stranger to Bitcoin price predictions, as she has previously said that BTC will go to $500,000 and even reach $1.48 million in the next seven years.

According to CoinShares’ latest report, investment products tied to digital assets just reached a yearly institutional inflow of $1.14 billion. The majority of this money ($1.083 billion) has gone into Bitcoin investment products. This could signal the beginning of large-scale institutional investor participation that Wood believes will propel the crypto market cap to $25 trillion.

ARK Invest is also waiting for the SEC’s green light on its spot Ethereum ETF application. Approval of a Spot Bitcoin ETF by the SEC is expected to propel the crypto market into the next bull run.

According to crypto analyst Ali Martinez, Cardano (ADA) is exhibiting a price consolidation pattern that is highly bullish. Drawing parallels to the consolidation phase of 2018-2020, Martinez points out that ADA’s current trend is a mirror image, albeit without the disastrous COVID-19 crash.

“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,” Martinez shared in a recent post on X.

The one-week chart for ADA/USD indicates a prolonged consolidation phase spanning 665 days until July 2020, after which ADA experienced a 2,984% rally, peaking at $3.058. A significant aspect of this ascent was the retest of the upper consolidation box line, which took several months from summer 2020 to early 2021. Interestingly, after dipping back into the consolidation box, ADA initiated a second breakout that led to the massive bull run.

Cardano Poised For 650% Rally Till July?

Martinez’s analysis suggests that ADA could be on the brink of its first breakout from its current consolidation range of sub-$0.25 to $0.45, which has lasted for 434 days. He outlines two possible trajectories for ADA’s price in the forthcoming period, using a gray and a blue line in his chart.

The more bullish scenario (gray line) anticipates a breakout above the consolidation zone that could catapult ADA to $0.75 by the end of December, assuming it surpasses the crucial resistance at $0.45. Following the historic pattern, a retest of the breakout mark could occur over several months.

This could potentially set the stage for an explosive rally beginning in early summer 2024, leading ADA to climb approximately 650% from its present value and surge past the $3 mark. However, Martinez does not see this as the zenith of ADA’s potential growth. The gray line suggests a continued upward movement, with ADA possibly reaching $6.50 before the closure of 2024.

The second, more conservative scenario (blue line) posits that the Cardano price consolidation may extend until July 2024, with potential dips below $0.25 if a market crash akin to the COVID-19 downturn occurs. In this case, a breakout towards $0.75 would be expected around July, followed by a retest at $0.45 by the end of 2024, eventually propelling ADA towards the $3 threshold by mid-2025.

Short-Term Price Analysis

On the lower time frames, ADA is currently making strong moves. The price has successfully retested the 0.5 Fibonacci retracement level ($0.341) and soared above the 0.618 Fibonacci retracement level ($0.37). In the first attempt, ADA failed at the 0.786 Fibonacci retracement level ($0.0.411). However, if this resistance is broken, the door to the yearly high at $0.463 is clearly open.

On Wednesday, the Bitcoin price rallied toward $38,000 amid expectations of the United States Securities and Exchange Commission (SEC) finally approving the first Spot BTC ETF. The regulator would end up exercising its right to delay its decision further, something that has usually been bearish for the price. However, the Bitcoin price continued to show strength, suggesting that a Spot Bitcoin ETF approval might be priced into the market already.

SEC Delays Spot BTC ETFs

The SEC announced on Wednesday that it had decided to further delay its decision on Spot Bitcoin ETF filings; in particular, the Hashdex Spot Bitcoin ETF filing which was due to a decision or a delay on November 15. The Commission had decided that it needed more time to contemplate and thoroughly investigate the filing before giving a final answer. This means that a decision for the Hashdex ETF filing is not expected until 2024.

Not only did the SEC decide to delay its decision on the Hashdex Spot ETF filing, but it also chose to do so on the Grayscale Ethereum Futures filing. This comes even after Grayscale had emerged victorious over the regulator in court, which demanded that the SEC review Grayscale’s Spot Bitcoin ETF filing.

Just like the Hashdex ETF, the SEC choosing to defer its decision on the Grayscale Ethereum Futures ETF pushes its deadline date into 2024, dashing hopes of the ETFs coming this year. However, both Bitcoin and Ethereum seemed to have shaken off this news with little to no reaction.

Bitcoin Price Already Accounts For ETF Approvals?

The approvals for a Spot Bitcoin ETF and an Ethereum Futures ETF have been anticipated by the crypto community for months now. And like any asset, investors may be becoming indifferent to whether the news affects their investment decisions or not.

Such a development would mean that the Bitcoin and Ethereum ETF approvals are being priced in already, and would not have much effect on the price when they are eventually approved. However, this does not seem to be entirely the case.

One example is when the price of XRP surged upon the rumors of BlackRock filing an XRP ETF, and then subsequently crashing once it was debunked. Then again, on Wednesday, as expectations around the SEC’s decision mounted, the prices of Bitcoin and Ethereum rallied to $38,000 and $2,080, respectively, suggesting that investors are still expecting approval to significantly move the market.

What seems to be happening is that news of delays from regulators is no longer having the bearish effects that they used to have. In this case, investors are simply not reacting to the news of a delay as they usually would seemingly because it is not widely understood that it is not the same thing as a rejection.

The Bitcoin price has since retraced since hitting $38,000 but it maintains a healthy $37,000 at the time of this writing. Ethereum has also followed suit, dropping to $2,046 from its Wednesday peak of $2,080.

With its latest break above the $74 barrier, Litecoin (LTC) is showing encouraging signs of a breakout into the bull market.

Increased transaction activity from miners and major investors in cryptocurrency is fueling expectations of an upward trend and suggests that a huge price spike is imminent.

At the time of writing, the price range for LTC is $61.50 to $74.50, up 3.5% in the last 24 hours, figures by crypto market price aggregator CoinGecko show. The crypto has so far been able to hold its ground and sustain a 37% increase in the last four months, data shows.

The 100-Day Moving Average, on the other hand, is currently at $67.40, while the 10-Day Moving Average is at $73.25. These indicators suggest that Litecoin is gaining pace, with resistance levels found at $80.11 and $93.05.

Litecoin hasn’t changed much in response to recent events in the crypto sector, even though it stands to gain directly. Companies like Blackrock, Invesco, Franklin Templeton, Ark Invest and Fidelity recently applied for a spot Bitcoin ETF.

Blackrock recently submitted a separate document for an Ethereum ETF. This indicates the prevailing confidence of the largest asset management firm globally in the potential approval of its Bitcoin ETF.

Litecoin has emerged as one of the most active blockchains in the industry, with a solid achievement of surpassing 1 million transactions on November 14th, marking the first time the proof-of-work (PoW) network has reached this milestone.

This surpasses the previous all-time high of 660,153 transactions recorded just a day earlier. Remarkably, Litecoin’s transaction activity over this two-day period has exceeded that of Bitcoin, highlighting a significant surge in LTC’s blockchain engagement.

According to latest data, Litecoin has a strong daily trading volume that surpassed $612 million in the previous day. Like Bitcoin, Litecoin has shown to be resistant to manipulation.

Moreover, Litecoin continues to hold its position as a cryptocurrency with significant processing power for handling heavy transactions with a relatively consistent hash rate in recent months.

In the meantime, there are two very encouraging signs: the miners’ accumulation of LTC, which has reached reserves of over 2.5 million, and the spike in whale transactions, which peaked eight weeks ago.

But before the bulls can confidently shoot for $80 and higher, they must be able to breach the initial barrier at $78. A correction may begin if the price falls below $65; however, early support may come from the 406,590 holders who purchased 4.8 million LTC at approximately $67.

Meanwhile, the performance of the derivatives market presented a varied scenario. The Open Interest (OI) for Litecoin Futures on Binance exhibited a lateral movement, suggesting a decreased inclination among traders to speculate on the future price movements of the cryptocurrency.

Conversely, the Funding Rate on the exchange portrayed a positive trend, signifying the prevalence of long-position traders in the market. This divergence in market indicators reflects a nuanced sentiment among participants, with some exhibiting caution and a wait-and-see approach, while others express confidence in the upward trajectory of Litecoin.

(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 Creative Commons

The Bitcoin price has risen as high as $38,012 (on Binance), recording a marginally higher high. Here are the main reasons for the latest surge in BTC price.

#1 Euphoria Over Potential ETF Approvals

The crypto market has been electrified by the possibility of the US Securities and Exchange Commission (SEC) approving several spot Bitcoin ETFs. With the approval window having opened on November 9 until Friday (November 17), experts like James Seyffart and Eric Balchunas from Bloomberg estimate a 90% chance of approval for multiple filings by January 10, 2024, the final deadline for Ark Invest’s filing.

Remarkably, the SEC is facing a significant deadline cluster, with three applications for spot ETFs from Franklin Templeton and Hashdex (due November 17), and GlobalX (due November 21) awaiting decisions. Amidst this tense backdrop, Hashdex emerged as the first to encounter a delay, as the SEC postponed their decision on the conversion from a futures ETF to an ETF that holds both futures and spot.

This news momentarily jolted the market, resulting in a sharp but brief decline in BTC’s price, which plummeted from $37,400 to $36,780 in a swift five-minute span. However, the market’s resilience was quickly demonstrated as Bitcoin not only recovered but exceeded its pre-announcement price within 25 minutes.

#2 Unprecedented Institutional Interest In Bitcoin

Institutional demand for Bitcoin has reached new heights, particularly through exchange-traded products (ETPs). The recent BlackRock Bitcoin spot ETF filing significantly contributed to this surge. “The Assets Under Management via ETPs have increased by 27,095 BTC, bringing the total to a record 204,170 BTC, equivalent to roughly 7.4 billion dollars,” reports K33 research. This trend indicates a growing institutional embrace of Bitcoin as a viable investment asset.

#3 Supply And Demand Dynamics

Data from LookIntoBitcoin highlights a remarkable trend: over 70% of Bitcoin has not been moved for at least one year. “This is a historic moment that underscores the strength of Bitcoin’s tokenomics,” the data provider shared. They further elaborated, “As long as this HODL Wave continues to climb, it suggests a bullish market outlook with long-term investors showing no signs of selling their holdings. This is particularly significant considering the upcoming Bitcoin Halving event and the growing institutional interest.”

#4 Liquidity Injections By The Fed

Arthur Hayes, co-founder of BitMEX, commented on the significant liquidity being injected into the market and its impact on cryptocurrencies. “Keep your eye on the prize. Almost $200 billion in liquidity has been added since November’s start, impacting assets like Bitcoin. This indicates a potential ongoing rise for cryptocurrencies,” Hayes stated. He emphasizes the importance of understanding the RRP and TGA dynamics in predicting market movements.

#5 Inverse Correlation With The DXY

The inverse correlation between Bitcoin and the U.S. Dollar Index (DXY) has been a notable factor in Bitcoin’s recent price increase. As the DXY faced resistance and began to fall, Bitcoin’s value conversely increased. Crypto analyst Josh stated, “Bitcoin PUMPS while the DXY DUMPS!”

At press time, BTC traded at $37,467 after failing to break out of the ascending trend channel.

Bitcoin proponents have reason to be merry as the alpha coin has gracefully ascended to a promising valuation of nearly $38,000 as of late Wednesday, reclaiming its throne with the highest value seen in the last 12 months.

Bitcoin bounced back strongly from its battering the day before, reaching within striking distance of a new 18-month high just shy of the vaunted price target.

A drop in federal interest rates, the expectation that Sam Bankman-Fried’s apology for his actions at FTX is a fresh start for the distressed sector, and the SEC’s approval of a bitcoin exchange-traded fund (ETF) are some of the things that caused prices to rise.

ETFs are a type of investment product that tracks an index or a commodity. Bitcoin ETFs would allow investors to profit from bitcoin’s rising value without actually owning any bitcoin.

ByteTree pointed out that Bitcoin was doing much better than standard assets like gold and U.S. stock indexes, which have also been going up.

Reports say that a decision could bring in an extra $600 billion in demand. An approval for an ETF, according to CryptoQuant experts, will cause Bitcoin’s market capitalization to swell by $1 trillion.

Bitcoin Up 117% This Year

As this developed, Bitcoin has had a significant increase of over 117% in value over the course of this year. The anticipation of the halving event in 2024 has also contributed to the increase in market optimism.

The price of Bitcoin (BTC) is going up as people try to make up for all the ground they lost in the recent crash, which erased up to $90 million in open interest.

At $34,572, the 25-day Exponential Moving Average (EMA) comes into view. BTC is trying to get back above the important support level at $36,788.

Despite an array of economic challenges, BTC continues to surge upward, registering a 126% year-to-date gain and options market data point to speculators angling toward the $40,000 level.

With the recent price increase, the Crypto Fear and Greed index has moved squarely into the “Greed” category, indicating that market mood has improved.

In an environment characterized by an optimistic and positive outlook, Bitcoin’s momentum could be amplified and gun for the psychological turning point of $40,000.

This would be a big 10% rise from where it is now. It’s getting stronger because the Relative Strength Index (RSI) is tilting northward, which shows a surge in momentum.

Is The Bear Market Behind Us?

According to Zach Pandl, managing chief of research at crypto fund provider Grayscale Investments LLC:

“The recovery in crypto valuations can continue if real interest rates peak and we continue to see progress toward spot ETF approvals in the US market.”

“Bitcoin is now going mainstream, and the bear is behind us,” Charlie Morris, founder of investment advisory company ByteTree, said in a Wednesday market report.

“The good times are here,” he said.

Meanwhile, institutional investors have already begun deploying capital to Bitcoin and cryptocurrencies, while retail investors may be waiting for additional liquidity from approved ETFs.

Over the past year, institutional investors have poured over $1 billion into cryptocurrency, CoinShares data show (chart above).

(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 cottonbro studio/Pexels

Solana rallied above the $60 resistance against the US Dollar. SOL price is up over 50% in a few days and might continue to rise toward the $75 level.

SOL price started a major rally above the $55 resistance against the US Dollar.
The price is now trading above $60 and the 100 simple moving average (4 hours).
There is a major bullish trend line forming with support near $55.00 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
The pair could continue to move up if it clears the $68.00 resistance zone.

Solana Price Regains Strength

In the past few days, Solana saw a major rally above the $50 level. SOL gained bullish momentum after it settled above $50, outperforming Bitcoin and Ethereum.

The price is up over 50% in a few days and the bulls are not done yet. The recent move took the price above the $65 level. A high is formed near $67.21 and the price is now consolidating gains. It is showing positive signs above the 23.6% Fib retracement level of the upward move from the $51.23 swing low to the $67.21 high.

SOL is now trading above $60 and the 100 simple moving average (4 hours). There is also a major bullish trend line forming with support near $55.00 on the 4-hour chart of the SOL/USD pair.

Source: SOLUSD on TradingView.com

On the upside, immediate resistance is near the $67.20 level. The first major resistance is near the $68.00 level. A successful close above the $65.00 resistance could set the pace for a larger increase. The next key resistance is near $70.00. Any more gains might send the price toward the $75.00 level.

Are Dips Supported in SOL?

If SOL fails to recover above the $68.00 resistance, it could start a downside correction. Initial support on the downside is near the $62.50 level.

The first major support is near the $57.75 level or the 61.8% Fib retracement level of the upward move from the $51.23 swing low to the $67.21 high, below which the price could test the trend line. If there is a close below the $55.00 support, the price could decline toward the $50.00 support in the near term.

Technical Indicators

4-Hours MACD – The MACD for SOL/USD is losing pace in the bullish zone.

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

Major Support Levels – $62.50, and $57.75.

Major Resistance Levels – $68.00, $70.00, and $75.00.

Ethereum price remained strong and started a fresh increase above $2,000. ETH could continue to rise if it clears the $2,075 resistance zone.

Ethereum is again moving higher above the $2,000 support zone.
The price is trading above $2,000 and the 100-hourly Simple Moving Average.
There is a key bullish trend line forming with support near $2,046 on the hourly chart of ETH/USD (data feed via Kraken).
The pair could accelerate higher if it clears the $2,075 resistance zone in the near term.

Ethereum Price Reclaims $2K

After a downside correction, Ethereum price found support near the $1,920 zone. ETH traded as low as $1,933 and recently started a fresh increase like Bitcoin. There was a clear move above the $1,950 and $1,975 resistance levels.

There was a close above the 50% Fib retracement level of the downward move from the $2,118 swing high to the $1,933 low. Finally, it settled above the main $2,000 resistance zone.

Ethereum is now trading above $2,000 and the 100-hourly Simple Moving Average. There is also a key bullish trend line forming with support near $2,046 on the hourly chart of ETH/USD. Immediate resistance is near the $2,075 zone. It is close to the 76.4% Fib retracement level of the downward move from the $2,118 swing high to the $1,933 low.

Source: ETHUSD on TradingView.com

The next major resistance sits at $2,120. A close above the $2,120 resistance could start another strong increase. The first resistance is near $2,150, above which the price could aim for a move toward the $2,200 level. Any more gains could start a wave toward the $2,250 level.

More Losses in ETH?

If Ethereum fails to clear the $2,075 resistance or the $2,120 pivot level, it could start a fresh decline. Initial support on the downside is near the $2,045 level or the trend line.

The next key support is $2,025 or the 100-hourly Simple Moving Average. The main support is $2,000. A downside break below the $2,000 support might start a steady decline. In the stated case, Ether could drop toward the $1,920 support zone in the near term. Any more losses might call for a drop toward the $1,850 level.

Technical Indicators

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

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

Major Support Level – $2,025

Major Resistance Level – $2,120

Bitcoin price restarted its increase from the $34,650 support. BTC is up over 5% and now attempting a move above the $38,000 resistance zone.

Bitcoin started a fresh rally from the $34,650 support zone.
The price is trading above $36,500 and the 100 hourly Simple moving average.
There was a break above a major bearish trend line with resistance near $36,300 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could continue to move up if it clears the $38,000 resistance zone.

Bitcoin Price Trims All Losses

Bitcoin price started a downside correction from the $38,000 resistance. BTC declined below the $36,000 and $35,500 levels. The price even spiked below $35,000. However, the bulls were active near the $34,650 support zone.

A low was formed near $34,666 and the price started a fresh increase. There was a sharp increase above the $36,000 and $37,000 levels. There was also a break above a major bearish trend line with resistance near $36,300 on the hourly chart of the BTC/USD pair.

Bitcoin price is up over 5% and it retested the $38,000 resistance zone. A high is formed near $37,950 and the price is now consolidating gains. It is also trading above $36,500 and the 100 hourly Simple moving average and the 23.6% Fib retracement level of the upward move from the $34,666 swing low to the $37,950 high.

On the upside, immediate resistance is near the $37,850 level. The next key resistance could be near $38,000 or the recent high. A close above the $38,000 resistance could start a strong increase.

Source: BTCUSD on TradingView.com

The first major resistance is near $38,800, above which the price might accelerate further higher. In the stated case, it could test the $39,200 level. Any more gains might send BTC toward the $40,000 level.

More Losses In BTC?

If Bitcoin fails to rise above the $38,000 resistance zone, it could start another downside correction. Immediate support on the downside is near the $37,450 level.

The next major support is $36,500 or the 100 hourly Simple moving average. If there is a move below $36,500, there is a risk of more downsides. In the stated case, the price could drop toward the $35,850 support in the near term.

Technical indicators:

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

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 60 level.

Major Support Levels – $37,450, followed by $36,500.

Major Resistance Levels – $37,850, $38,000, and $38,800.

Crypto analyst Tony The Bull, founder of CoinChartist, has revealed why Ethereum is destined to cross $10,000. According to the crypto analyst, the king of the altcoins has its top just right after $10,000 using the Fibonacci extension.

How Ethereum Gets To $10,000

In the latest issue of the CoinChartist newsletter, crypto analyst Tony The Bull used the Hurst Cycle Theory which showed cyclical reoccurrence across the ETH/USDT chart. As the analyst explains, the uptrend noticed in the Ethereum charts has usually come from the accumulation of the token.

Tony points out that this accumulation has always taken place “at the bottom boundary of the Ending Diagonal pattern.” The analyst further added that “Since intracycle harmonics come in twos and threes, three cycles should complete one larger cycle that concludes with a breakdown of this Ending Diagonal pattern.”

Taking this Ending Diagonal Pattern into account, Tony reveals that the top of the pattern puts the ETH price at $10,000. However, this is not the only pattern that suggests that the king of the altcoins will end up beating the $10,000 level.

He also pointed out that the previous ETH rally had started at the 0.5 Fibonacci extension and reached 1.414 the last time that the ETH price peaked. The analyst notes that Ethereum is once again at the 0.5 Fibonacci extension which led to a break out in the price and the same could happen here. But this time, the target is able $10,000 if the 1.414 Fib is reached again.

ETH Moves Into Overbought Territory

One interesting fact that the analyst points out in the newsletter is the fact that Ethereum is currently in overbought territory. However, where this would usually signal a bearish reversal coming for the digital asset, Tony does not believe this is the case here.

Rather, he explains that a cryptocurrency being overbought usually means that it is “a powerfully trending asset.” So even though it could lead to a reversal, it does not invalidate the bullishness of that digital asset.

He also mentions that “the Stochastic has confirmed a 1M above 80 on the Stock.” Now, whenever this has happened for Ethereum, it has often resulted in a pushup for the price. At the same time, ETH is moving to the upper Bollinger Band. Both of these setups could paint a bullish breakout for the asset.

However, the analyst warns that for this bullish scenario to play out, the Ethereum price would have to close above $2,450 this month. If the Stochastic moves back below 20, it could invalidate it and trigger a downtrend. “But if ETHBTC can push back above 20 this will generate a buy signal on the 1M Stochastic and kickstart Ether’s over-performance above Bitcoin,” Tony concluded.