Blockchain

On-chain data shows that a bullish combination has just formed for Bitcoin, which may signal that a rally could be ahead for the asset.

Sharks & Whales Are Accumulating Both Bitcoin, Tether Right Now

According to data from the on-chain analytics firm Santiment, both the sharks and whales of BTC and USDT have been accumulating recently. The metric of interest here is the “Supply Distribution,” which keeps track of the total amount of a given asset that the different holder groups carry.

In the current topic, sharks and whales are the entities of interest. For Bitcoin, the combined supply of these assets may be defined as the 10 to 10,000 BTC range, while for Tether, it’s generally 100,000 to 10 million USDT.

The sharks and whales are influential entities in the sector due to their holdings, but their role differs between whether they are holding the volatile BTC or the stablecoin USDT.

The chart below shows how the supplies of the sharks and whales of the two cryptocurrencies have changed over the last few months:

The graph shows that the Bitcoin sharks and whales have participated in some accumulation recently, which has taken their supply to 13.03 million BTC, a new high for the year.

Interestingly, while this accumulation has occurred, the sharks and whales of Tether have also expanded their holdings. The metric’s value, in this case, has reached a six-week high of 15.03 billion USDT.

The significance of the trend in the supply of the BTC sharks and whales may seem straightforward: these humongous entities are buying right now, so that should be bullish for the price. But what about the pattern being shown by the USDT cohort?

Generally, an investor may buy into a stablecoin like USDT to avoid the volatility of assets like Bitcoin. Once these holders feel that the prices are right to jump back into the volatile side of the sector, they exchange their fiat-tied tokens for their desired coin.

This shift can naturally provide buying pressure on whatever cryptocurrency they are swapping into. Because of this reason, one way to look at the supply of a stablecoin is as a measure of the available potential buying power for Bitcoin and other assets in the market.

Thus, the latest Tether accumulation would suggest that the sharks and whales have increased their buying capacity. Sometimes, spikes in this indicator come at the expense of the corresponding BTC metric, as these holders convert their reserves. While the buying power goes up for the future in such a scenario, it has only come at the expense of a BTC selloff.

In the current case, though, both of these indicators have trended up at the same time, which means that not only have the sharks and whales participated in some Bitcoin shopping, but the capital reserves that these large holders may deploy into the asset in the form of Tether have also gone up. “This is generally a bullish combination,” explains Santiment.

BTC Price

Bitcoin had earlier risen above the $27,000 level, but the asset has retreated in the past few hours as it is now trading around the $26,700 mark.

Bitcoin has recovered over the last day after gaining momentum from the Valkyrie Ethereum ETF news and pulling up the likes of the MATIC price. This has led to a rare green day for the cryptocurrency market in as many months but MATIC may not be able to hold as well as other altcoins as whales make their move.

Whales Move Tens Of Millions To Exchanges

The first notable whale transaction involving MATIC was flagged by Lookonchain on Wednesday. The transaction was carrying 10.78 million tokens at the time worth around $5.5 million.

Mostly, it was the destination of these tokens that was important which turned out to be the Binance crypto exchange. The whale looked to have deposited the tokens to sell them as the MATIC price had taken a quick 3% dive following the deposit.

A whale deposited a total of 10.78M $MATIC ($5.5M) into #Binance in the past 26 hours and the price of $MATIC decreased by 3%.

The whale currently has 2.72M $MATIC($1.37M) left.https://t.co/C4VNQ1QDq9 pic.twitter.com/8JcoySfsRP

— Lookonchain (@lookonchain) September 27, 2023

MATIC would later recover and move into the green, a price increase that seemed to have prompted more whales to take advantage of the situation. Over the course of the day, whale transaction tracker Whale Alert would report multiple whale transactions all carrying millions of dollars worth of the token toward exchanges.

The next large transaction was one carrying 11,000,888 tokens worth $5.7 million to the Binance exchange. Another transaction followed shortly carrying the exact number of MATIC tokens also headed for the Binance exchange.

Within the same hour, the whale tracker also reported 15,826,267 million MATIC being shifted once again to Binance. This transition was carrying approximately $8.2 million worth of tokens. This pointed toward whales looking to dump large portions of holdings.

15,826,267 #MATIC (8,199,632 USD) transferred from unknown wallet to #Binancehttps://t.co/fgGpVb7id0

— Whale Alert (@whale_alert) September 28, 2023

MATIC Price Could Suffer Drawdown

The massive amounts of tokens being shifted toward centralized exchanges could mean that the whales are beginning to offload some of their holdings to avoid further losses. In this case, it is not farfetched to say that the altcoin’s rally over the last day might be a brief one. Such a fall could easily see the MATIC price fall back to $0.51 as bears retest the support at $0.5.

However, all hope is not lost for the MATIC price as the coin still holds some bullishness. As one TradingView analyst points out, if the altcoin is able to break out from its current descending triangle, then the price could rally over 50%.

The analyst puts the first target of this rally at the $0.9 level as well, which is an almost 100% price increase from here. But MATIC will continue to face opposition from bears, making it a tricky situation.

At the time of writing, the MATIC price is resting above $0.5232, enjoying 3.06% gains in the last day.

According to a Bloomberg report, MakerDAO, one of the prominent decentralized lenders in cryptocurrency, has reaffirmed its decision to invest billions of dollars in US government bonds.

This strategic move has propelled its governance coin, MKR, to reach its highest level since April 2022, outperforming other major cryptocurrencies, including Bitcoin (BTC).

MKR has experienced a remarkable surge of 77% this quarter, emerging as the best-performing cryptocurrency of the year. Despite a modest decline of 3.9% to $1,452 on Friday, the coin has nearly tripled in value. 

MakerDAO Doubles Down On Treasury Bonds

As per DefiLlama data, MakerDAO currently oversees $4.6 billion in assets. The rally of MKR can be attributed to MakerDAO’s 2022 decision to convert the backing funds of its stablecoin DAI into assets such as short-term US Treasuries and corporate bonds. 

This strategic shift aimed to seek more stable yields amid the downturn in the cryptocurrency markets. Subsequently, MakerDAO passed a proposal enabling the investment of up to $6 billion in short-term Treasuries, doubling the existing limit.

Simon Peters, an analyst at investment platform eToro, suggests that the recent gains in MKR can be attributed to rising treasury yields following the Federal Reserve’s indication of keeping rates higher for longer.

However, signs of a potential slowdown in the MKR rally have emerged. CryptoQuant data reveals a gradual increase in MKR tokens held on centralized exchanges (CEX), indicating that some traders are preparing to secure profits from the recent surge. 

Notably, the drop experienced on September 29 ahead of the monthly close marked the largest decline since mid-September.

According to Bloomberg, the trader enthusiasm for MKR has extended to DAI, MakerDAO’s stablecoin. DAI’s circulation has grown from a low of $3.9 billion on August 20 to $5.5 billion. 

Furthermore, MakerDAO introduced a limited-time offer of an 8% annual yield to DAI holders, which, combined with the approval of the investment proposal, could potentially trigger a fresh wave of buying in short-term Treasuries.

Allan Pedersen, the CEO of Monetalis, a firm assisting MakerDAO in its investments, expressed that if the supply of DAI continues to increase, it could lead to a significant expansion of MakerDAO’s T-bill investments in a short time frame.

The developments surrounding MakerDAO’s investment strategy in US government bonds, which have propelled MKR to new heights, signify a calculated move to achieve stability and sustainable yields by the decentralized protocol.

MKR Hits 18-Month High

MKR has declined over 4.5% in the past 24 hours, causing the token to retrace to its current trading price of $1,452. However, over the last month, MKR has exhibited consistent gains across various time frames, with notable increases of 12%, 19%, and nearly 40% over the seven, fourteen, and thirty-day periods, respectively.

Furthermore, MKR has reached an impressive 18-month high, surging by 101% year to date and briefly peaking at $1,590 earlier on Friday.

In the short term, safeguarding against an extended decline, MKR has two crucial support levels that bulls must defend. The first immediate support rests at $1,430, while the second support level, spanning two months, is positioned at $1,341.

Meanwhile, MakerDAO and its ecosystem appear poised for further gains with their investment strategy. With a few months remaining in 2023, there is a potential for MKR to conclude the year as the top-performing asset if the ongoing rally continues.

Featured image from Shutterstock, chart from TradingView.com

Bitcoin has broken back above the $27,000 level during the past day, but if on-chain data is to go by, this surge may not last for long.

Bitcoin Investors Are Taking Profits At Highest Rate In 3 Months

According to data from the on-chain analytics firm Santiment, there is a chance that a short-term correction could happen for the cryptocurrency. The relevant metric here is the “ratio of daily on-chain transaction volume in profit to loss,” which, as its name suggests, tells us about how the profit-taking volume compares against the loss-taking volume on the Bitcoin network right now.

This indicator works by going through the transaction history of each coin being sold/transferred on the blockchain to see what price it was moved at before. If this previous selling price for any coin was less than the current spot price, then that coin is being sold at a profit right now.

The sale of all such tokens would contribute toward the Bitcoin profit-taking volume, while coins of the opposite type would add towards the loss-taking volume.

Now, here is a chart that shows the trend in this BTC metric over the past few months:

As displayed in the above graph, this Bitcoin indicator has observed a large spike as the cryptocurrency’s price itself has seen a surge beyond the $27,000 mark and has reached a value of 2.51.

When the metric has a value greater than zero, it means that the profit-taking volume is more than the loss-taking volume. On the other hand, values under this threshold suggest the dominance of loss-taking.

At the current value of 2.51, the profit-taking volume outweighs the loss-taking one by 3.51 to 1. This disparity between these two volumes is the highest it has been since around three months ago.

Historically, intense profit-taking has usually resulted in at least a short-term top for Bitcoin, so it’s possible that the current values of the metric would also result in a correction for the price.

In the chart, Santiment has also attached the data for the “Market Value to Realized Value (MVRV) ratio,” which keeps track of the difference between the Bitcoin market cap and realized cap.

The latter of these is basically a measure of the total amount of capital that the investors as a whole have put into the cryptocurrency, so this metric tells us how the value that the holders are carrying currently compares with their total investment.

From the graph, it’s visible that the 7-day Bitcoin MVRV ratio has turned notably positive with this rise, which implies that the investors are carrying profits at the moment.

The analytics firm notes that this metric going back below zero would be ideal for the next leg up, as the holders being in loss would lead to an exhaustion of the profit-sellers.

BTC Price

So far, despite the aggressive profit-taking happening in the market, Bitcoin has managed to hold above the $27,000 mark.

Despite some analysts noting why XRP is unlikely to end on a high, certain macro (and micro) factors could significantly impact the token’s price and possibly see it enjoy the same trajectory it did following Judge Analisa Torres’ ruling in favor of Ripple. 

SEC-Related Factors Could Impact XRP Price

On August 17, the US Securities and Exchange Commission (SEC) was given approval by Judge Analisa Torres to file its motion seeking an interlocutory appeal against her ruling at the Court of Appeals. 

However, this wasn’t an approval of the SEC’s appeal, and that is something that everyone in the XRP community is currently anticipating, as the court can either choose to accept or reject the appeal after considering the grounds for appeal and whether it meets the requirements needed to allow it.

As a former SEC official Marc Fogel noted, the specific requirements for an interlocutory appeal are “hard to meet,” and the odds seem to be against the SEC. As such, the court is expected to deny the SEC’s request for an interlocutory appeal.

If that happens, we could see XRP again enjoy most of the gains it saw following Judge Torres’ ruling when the token’s market cap rose significantly, overtaking Binance’s BNB to become the fourth-largest crypto by market cap (although it has dropped back to 5th).

Another factor that could spark an upward trend for XRP is if a settlement between Ripple and the SEC becomes more feasible. Stakeholders in the crypto community have commented on the possibility of this happening and factors that could prompt both parties to settle.

Pro-XRP legal expert John Deaton once stated that a settlement could happen this year if Judge Failla granted Coinbase’s motion to dismiss the SEC’s lawsuit against it. If that were to happen, the Judge would likely be adopting Judge Torres’ ruling that programmatic sales do not constitute investment contracts and crypto tokens bought through exchanges cannot be labeled as one. 

It is believed that this could force the SEC into settling as it will become more established (especially if its interlocutory appeal was rejected alongside) that it doesn’t have jurisdiction over token sales on exchanges as they do not constitute investment contracts. 

A more interesting factor that could force the SEC into a settlement is the revelations (and future ones) being made about the ETH Gate. As a form of damage control, the Commission could propose a settlement with Ripple rather than dragging the case to trial, where its credibility could be jeopardized. 

The SEC proposing a settlement (not necessarily in the public eye) will be considered a major win for Ripple. It could restore investors’ confidence in the ecosystem, leading to a price increase in the XRP token. 

Ripple’s Expansion Plans

Ripple has proven not to be deterred by the long-running battle against the SEC as the crypto firm has continued to build amidst it. In fact, the company’s President, Monica Lang, recently mentioned that the court case (following Judge Torres’ ruling) has helped them to expand their business not just in the US but “even more globally.”

According to her, the ruling gave the company much-needed clarity, especially amid regulatory uncertainty. With this in mind, the company can map out a proper framework going forward, bearing in mind that Judge Torres had ruled that XRP isn’t a security in itself.

On the back of Judge Torres’ ruling, Ripple’s general counsel Stuart Alderoty had revealed to CNBC in an interview that Ripple could potentially begin talks with US financial firms about them adopting Ripple’s On-Demand Liquidity (ODL) product, which can be used to facilitate cross-border transactions. 

If this were to happen, it would undoubtedly represent a bullish signal for the XRP community. Although Ripple and XRP have enjoyed outstanding success overseas (especially in Asia), many still believe that more work needs to be done to penetrate the American market. Therefore, a move like that could convince investors of the great strides the company is making in America.

Meanwhile, there are also rumors of Ripple going public. Ripple is set to hold its “proper victory party” on September 29 in New York, and many in the XRP community speculate that the crypto firm could announce its initial public offering (IPO) plans at the event. Such an announcement will be huge and could generate more buzz and interest in the company, with XRP’s price being a beneficiary of this news.

XRP is currently trading at $0.50, up by close to 2% in the last twenty-four hours as anticipation towards the party builds up. 

In the last Bitcoin news, the price of the first cryptocurrency by market cap has been experiencing some gains on low timeframes. However, traders on the crypto exchange Binance were surprised when the BTC price suddenly dropped.

As of the writing of this Bitcoin news, the cryptocurrency’s price trades above $27,000 for the first time in weeks. BTC recorded a 2% profit in the last 24 hours and seven days, while the price of Ethereum leads the incipient bullish momentum.

Shocking Bitcoin News For Traders On Binance

According to crypto report Colin Wu, the price of Bitcoin crashed on the trading venue from its current levels to as low as $2,700. As seen on the chart below, and unlike previous occasions, the crash took place on different occasions.

The incident was recorded at 16:17 UTC+8 time on the crypto exchange’s perpetual futures platform. One of the most popular trading instruments on the crypto exchange, its CEO, Changpeng “CZ” Zhao, responded to the incident.

Via his personal X account, CZ said:

Root cause identified, some new code caused it. Need to revert and fix data. Engineers say 1hr ETA for fix. So, expect 2hr or so.

In a previous tweet, CZ clarified that a problem with the display for the trading pair caused the issue. The User Interface was unaffected, like the APIs connected to the platform.

Thus, fortunately for traders on the platform, the incident failed to trigger any stop losses or margin calls for the BTC/USDT futures positions.

This is a display ONLY issue. Trading not affected. https://t.co/ZixcFVcxQU

— CZ Binance (@cz_binance) September 29, 2023 

BTC Price Analysis

On the other hand, despite this Bitcoin news, the BTC price seems to be stabilizing around $27,000 and could potentially flip this level as support, allowing for a bullish continuation. A pseudonym crypto analyst claims that the cryptocurrency remains below the 20-day moving average and 21-day exponential moving average.

If the cryptocurrency can reclaim this territory, then bulls could have a shot of returning above $30,000. Looking at potential clues that could hint at further profits, the analyst said:

Bitcoin Open Interest came down a lot as price held steady. I said it yesterday but I’ll say it again, it’s looking a lot healthier than any prior dumps. This does not mean this can’t go down obviously. It does make it less likely to see these volatile up and down moves.

Cover image from Unsplash, charts from DaanCrypto on X and Tradingview

In a whirlwind of anticipation, the Shiba Inu community is holding its collective breath as Shytoshi Kusama, the chief architect behind SHIB, hints at breaking his silence. With a slew of developments on the horizon for the Shiba Inu project, the statement amplifies expectations for potential significant updates.

In a message conveyed by team member Lucie on Twitter, Kusama emphasized his unwavering support for the Shiba Inu community, stating, “We FULLY intend to support the community. Hence the paper. Takes time, that’s all. But I think it’s time for my silence to end SOON.”

This announcement has fueled heightened expectations and excitement for what’s next for the Shiba Inu project.

Potential Shiba Inu News

The Shiba Inu project has been the subject of much discussion recently, especially with recent alterations and announcements. A few days ago, there was a notable transformation of BONE, Shibarium’s gas token. The process, termed “renouncing,” ensures that BONE has now become fully decentralized, thereby eliminating any chance for future alterations or manipulations by the contract owner.

Kaal Dhairya, a prominent developer within the Shiba Inu community, took to X (previously known as Twitter) to affirm this significant shift. He remarked, “The deed is done, BONE is now renounced via the TopDog contract. We will continue to build decentralized, permissionless systems for the benefit of the community.”

Furthermore, on the dawn of September, Lucie, who holds the mantle of Shiba Inu’s Marketing Officer, pulled back the curtains on the unveiling of Wrapped BONE. WBONE has been introduced as a Shibarium-based token. It offers a standardized representation of the BONE token, ensuring its compatibility with the diverse ecosystem of smart contracts and DApps on the Shibarium network.

So, what developments can be anticipated next? Speculation runs rife on the next potential move for Shiba Inu. ShibaSwap’s transition to Shibarium has been a hot topic since Kusama’s last update in August, where he hinted at the move happening “soon”. However, an echoing silence has surrounded ShibaSwap’s migration progress since then.

However, the Shibarium project is more than just ShibaSwap and there’s a broader vision. The SHIB team has pledged to transition all Shiba Inu-linked ventures to the state-of-the-art Shibarium platform. This migration includes captivating offerings like non-fungible tokens (NFTs). Moreover, eyes are keenly set on “Shib: The Metaverse” – a metaverse product that has been in the wings for some time without any fresh updates as of lately.

SHIB Price Poised For Massive Rally?

In recent days, the Shiba Inu price has shown a slight uptrend. However, the 4-hour chart shows that the bulls need to show much more buying power to break out of the sideways trend of the last three-plus weeks. Today, the SHIB price was rejected at the 38.2% Fibonacci retracement level of $0.00000742.

Related Reading: Shiba Inu At $0.0000072: Sellers Push For Breakout From Compact Zone

In order to build more bullish momentum in the smaller time frames, it is essential for SHIB to break through this resistance. As of now, the 23.6% Fibonacci retracement level at $0.00000753 and the September 23 local high at $0.00000770 are key price targets.

If SHIB can build bullish momentum on the smaller time frames, this could also suggest that SHIB bulls are winning the battle on the higher time frames where a bullish quadruple bottom or a descending triangle is looming (1-week chart). As explained in previous analyses, both patterns are still too similar to make a final judgment at the moment.

If the quadruple bottom bottom—a noteworthy pattern in technical analysis—is validated, SHIB could be poised for a substantial rally. Market participants would be wise to observe the 23.6% Fibonacci retracement level closely, situated at $0.00002545, which could signify an approximate surge of 250% from its current standing.

However, the bullish scenario depicted by the quadruple bottom is juxtaposed by the contrasting bearish implications of the descending triangle. A breach below the support level of $0.00000715 could corroborate the descending triangle pattern, likely thrusting SHIB toward a low of $0.000006 for the year.

Such a breach may lead SHIB into unknown territory, with the prospect of establishing a new all-time low becoming a stark possibility.

Curve Finance’s native token, CRV, has recently experienced a notable uptick in value, driven by a sudden surge in whale accumulation. As the decentralized finance (DeFi) platform’s token rebounds from its November 2022 low of $0.4, crypto enthusiasts are left wondering whether this momentum is sufficient to initiate a sustained bullish trend for CRV.

Over the weekend, cryptocurrency tracker Lookonchain detected an interesting activity involving two significant whales. The first whale orchestrated a substantial withdrawal, amassing a staggering 19.56 million CRV tokens valued at approximately $10.33 million from the popular crypto exchange Binance.

What makes this move even more intriguing is that the whale proceeded to stake the entire sum on Convex Finance (CVX), a DeFi platform intricately designed to empower Curve users in enhancing their rewards.

Not to be outdone, another whale executed a withdrawal of 5.78 million CRV tokens, worth in excess of $3 million, from Binance on a Sunday, further piquing the curiosity of the crypto community.

Whale”0xDf14″ withdrew 5.12M $CRV($2.7M) from #Binance again 6 hours ago.

And the whale has withdrawn a total of 19.56M $CRV($10.33M) from #Binance in the past 3 days.

The whale staked all $CRV on #Convex.https://t.co/eSOmZSlmk8 pic.twitter.com/8fXj2VVk3T

— Lookonchain (@lookonchain) September 25, 2023

Resistance Looms, Yet Potential For CRV Persists

The current price of CRV on CoinGecko stands at $0.515, reflecting a 0.1% decline over the past 24 hours but showing a promising seven-day rise of 16%.

Despite the upward surge, CRV is currently confronting a resistance zone in the vicinity of the $0.55 mark, potentially attributable to short-term traders capitalizing on their gains.

In the event that supply pressure mounts, this altcoin could undergo a minor retreat, possibly descending to levels around $0.5 or even $0.45 as it regains its bullish footing.

If the ongoing recovery trend retains its momentum, CRV’s price, according to a price report, may aspire to another notable ascent, targeting a 10% upswing to challenge the upper threshold of a long-standing channel pattern.

Taking a step back to assess the broader picture, the CRV token has endured a prolonged correction phase, ensnared within a descending channel pattern that has persisted since February 2023.

Implications For The Future

As CRV navigates the currents of the crypto market, the recent surge in whale accumulation adds a layer of anticipation to its journey. Whether this accumulation is indicative of a more sustained bullish run remains to be seen, as the token grapples with resistance levels and supply dynamics. 

Nonetheless, the evolving dynamics surrounding CRV underscore the ever-evolving nature of the cryptocurrency space, where market sentiment and investor behavior can rapidly shift the course of a digital asset. 

(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 iStock

In continuation of its recent wave of delays, the US Securities and Exchange Commission (SEC) has further delayed the Spot Bitcoin ETF application of the world’s largest asset manager, BlackRock. 

SEC Request For Comments On BlackRock’s Bitcoin ETF Application

In its release concerning BlackRock’s application, the SEC called for written comments on why the iShares Bitcoin Trust should be approved or disapproved. This move ultimately extends the period in which the Commission can decide on the proposed rule change, with the next deadline coming on January 15, 2024. 

As part of its request for comments, the SEC specifically asked commenters to give their views on whether the Chicago Mercantile Exchange (CME) represented a regulated market of significant size for spot Bitcoin. It also asked them to give their views on the correlation between the Bitcoin spot market and the CME Bitcoin futures market.

It is unknown what the SEC aims to achieve from this, considering that the court had ruled in Grayscale’s case against the Commission that the spot and futures market were correlated. Therefore, there was no reason why ETFs relating to both markets should enjoy different regulatory treatment.

Meanwhile, in a similar fashion, the SEC also extended the deadline for a decision on the Spot Bitcoin ETF applications of Bitwise, Invesco, and Valkyrie. Following this, the next deadline for the SEC to decide on these applications is in January 2024, with Bitwise’s coming on the 14, Invesco on the 15, and Valkyrie’s on the 17 of that month.  

It is worth mentioning that the SEC can still further delay these applications one last time before it finally has to decide on them. If that happens, these ETFs are likely not to launch (if approval is given) until mid-March. Meanwhile, the SEC must decide on the ARK 21Shares Bitcoin ETF by January 10, 2024. 

The SEC is still expected to delay the Spot Bitcoin ETF applications of WisdomTree, VanEck, and Fidelity before a potential government shutdown on October 1.  

Not A Bad Day For Valkyrie

Despite the delay of its Spot Bitcoin ETF application, asset manager Valkyrie and its investors still had something to cheer about, as it is reported to have gotten the nod to offer exposure to ETH futures contracts through its Valkyrie Bitcoin and Ether Strategy ETF. 

The asset manager had earlier applied to the SEC to convert its Valkyrie Bitcoin Strategy ETF (BTF) to a new fund that holds both Bitcoin and Ethereum futures contracts.

This move was then touted as a way for the asset manager to gain a first-mover advantage over the rest, and it looks like it worked, as it will become the first to offer US investors the chance to bet on the future price of Ethereum. 

Confirming this news, Bloomberg Analyst James Seyffart stated that Valkyrie’s ticker will begin holding “a small % of ETH futures” from September 29 and will switch to “50% ETH 50% BTC” from next week. 

In the last 24 hours, the Bitcoin price experienced a significant surge of 2%, touching an intraday high of $27,320 yesterday. As of this writing, the BTC price hovered near the $27,000 mark.

Why Is Bitcoin Price Up Today?

Several analysts have offered insights into the recent upward trajectory. Renowned crypto specialist Skew elucidated on Twitter, “BTC Aggregate CVDs & Delta: Lower timeframe stuff but pretty clear spot absorption around the high, so $27.2K is an important price area to clear for spot buyers. Most of the push up was perp driven with spot trailing price (short liquidations & strong perp bid).”

Skew’s chart unveils that the momentum was predominantly backed by short liquidations and sturdy bids in the perpetual markets. Upon touching the $27,200 threshold, spot market selling began, indicating a potential local zenith for the Bitcoin price.

Complementing the data, on-chain analytics firm Santiment confirmed that open long and short Bitcoin positions surged as Bitcoin’s price enjoyed a bullish Thursday. The chart shared by Santiment correlates Bitcoin’s ascent with the augmented open interest in the futures market.

“After a quick price retrace after those longs & shorts quickly closed yesterday, they have remained high today, allowing prices to maintain their levels,” the on-chain tracker said.

On a bullish note, Santiment commented that Bitcoin sharks and whale addresses, which are defined as 10-10,000 BTC wallets, have now accumulated to their highest amount held in 2023, amounting to 13.03 million BTC. Additionally, Tether sharks and whales are accumulating buying power. “This is generally a bullish combination,” Santiment remarked.

Nonetheless, the analysis firm also sounded a note of caution: “The long-term outlook is bright for Bitcoin with whales accumulating BTC & USDT. However, watch for a short-term correction, with traders profit taking heavily as $27K hit Thursday. When the 7D MVRV gets below 0, that may be ideal for another leg up.”

Their data further highlights that during yesterday’s significant move, Bitcoin showcased its highest on-chain profit/loss mark in the past quarter, which usually hints at an impending short-term correction.

DaanCrypto, another industry pundit, remarked during the price flux, “Bitcoin Price up, Spot Premium up, Funding down. This move has seen a strong sustained spot bid so far which is looking quite healthy as we speak.”

Similarly, renowned crypto analyst Exitpump chimed in during the price crescendo with the observation, “BTC Binance spot orderbook: Noticed chasing bid on the book with big asks stacked slightly above the price, it’s getting interesting. Maybe a spoof buy wall, but I think that it just grinds higher.”

What’s Next For BTC Price?

As described in one of our last analyses, the Bitcoin price is facing a crucial monthly close tomorrow, Saturday. Rekt Capital, a seasoned crypto analyst, recently spotlighted the significance of Bitcoin’s approaching monthly candle close.

Via X, he emphasized that Bitcoin is currently treating the $27,000 mark as a resistance. He elaborated, “Bitcoin needs to monthly close above $27,091 for this to be a fake-breakdown. Otherwise, the breakdown will be technically confirmed.” In this case, a fall toward $23,000 could be imminent.

On the 1-day chart, Bitcoin is showing strong bullish momentum today. The BTC price has managed to break the (black) trend line. The task today is to defend the re-test. If it succeeds, a monthly close above $27,100 seems very likely, and a rally similar to June could be possible.