Blockchain

An analyst has explained that based on a pattern forming in the Cardano price, a 32% rally could take place, if a close above this level can happen.

Cardano Has Been Forming A Descending Triangle Pattern Recently

In a new post on X, analyst Ali has talked about a Descending Triangle forming in the daily price of Cardano. The “Descending Triangle” refers to a pattern in technical analysis (TA) that, as its name suggests, looks like a triangle with a downward slope.

The pattern is made up of two lines, the first of which is a slopped line connecting lower highs in the price, while the second one is horizontal (that is, parallel to the time-axis) and joins together a series of lows.

The upper line of the pattern provides resistance to the price, so it can be a likely point of reversal for it. Similarly, the lower line may provide support, so bottoms can be probable at it.

A break out of either of these lines implies the continuation of the trend in that direction. This means that a breakout above the triangle can be bullish for the asset, while a drop under it can prove to be a bearish signal.

Like this pattern, there is also another pattern in TA called the Ascending Triangle. This pattern works similarly, except for the fact that the two lines are switched around (that is, the slopped line is the bottom line and connects together higher lows).

Now, here is the chart shared by Ali that shows the Descending Triangle pattern that has recently been forming for Cardano on its 1-day price:

From the graph, it’s visible that Cardano’s latest sharp upward surge means that cryptocurrency is now retesting the upper line of this Descending Triangle.

If the historical pattern is anything to go by, a break above could be a positive sign for the price. “A sustained daily close above $0.53 could lead to the start of a 32% rally, potentially pushing $ADA up to $0.68!” notes the analyst. Ali has chosen a target 32% higher as the height of the Descending Triangle was equal to a price swing of 32% as well.

Naturally, this bullish outlook would only be if a break can truly take place for the cryptocurrency. A rejection here is still a possibility, as it has already happened a few times over the course of this pattern’s duration.

ADA Price

The past 24 hours have been bullish for the cryptocurrency sector as a whole, but Cardano has clearly pulled ahead of the crowd as it has registered returns of almost 10%.

Following this surge, the coin has managed to break above the $0.53 level. The asset now has to hold above this mark if the Descending Triangle break has to register.

Bitcoin is back above $44,000 for the first time since the Spot Bitcoin ETFs were approved for trading in January. This price surge is believed to be due to several factors that have played out in favor of the bulls in recent times. 

BTC Whales Accumulate More Bitcoin

Citing data from Glassnode, crypto analyst Ali Martinez revealed recently that Bitcoin whales have been accumulating more BTC, with around 73 new addresses now holding 1,000 BTC or more. This figure is said to mark a 3.66% increase in the last two weeks, thereby continuing the accumulation trend. 

NewsBTC had previously reported how Bitcoin whales had gone on a buying spree following Bitcoin’s decline to below $40,000. The flagship crypto token is believed to have dropped to that level due to the significant selling pressure from Grayscale, the issuer of the GBTC Spot Bitcoin ETF. 

The asset manager has, however, cooled off on its BTC sell-offs recently as outflows from the fund continue to decline. This is another factor that could have contributed to Bitcoin’s recent price surge. Data from the on-chain analytics platform Arkham Intelligence shows that other whales like FTX and Alameda Research have also eased off on offloading their crypto tokens. 

Spot Bitcoin ETFs Doing Their Bit

There has been increased institutional demand for Bitcoin thanks to the Spot Bitcoin ETFs. This is evident in the success which these funds have achieved since their launch. As a result, the issuers of these funds, like the world’s largest asset manager, BlackRock, have had to accumulate a significant amount of Bitcoin.

Recently, these asset managers were reported to hold over 657,000 BTC, thereby accounting for more than 3% of Bitcoin’s circulating supply. The newly listed Spot Bitcoin ETFs (excluding Grayscale) alone hold about 187,000 BTC. Interestingly, these funds are well on their way to surpassing MicroStrategy, which has a BTC holding of 190,000.

Meanwhile, Spot Bitcoin ETFs could launch soon in Hong Kong with 10 applications already made to the country’s financial regulators. This is another narrative that could be driving Bitcoin’s current price surge, seeing the impact that the approval rumors in the US had on Bitcoin’s price towards the end of last year. 

Hong Kong isn’t the only country in Asia showing crypto enthusiasm as Thailand was recently reported to have removed VAT (Value Added Tax) on crypto trading. 

At the time of writing, Bitcoin was trading at around $44,800, up over 4.4% in the last 24 hours, according to data from CoinMarketCap. 

Bitcoin (BTC) has started riding the recent bull market wave and rising with fresh gains after weeks of sluggish momentum, with crypto analysts predicting more potential gains for the leading cryptocurrency asset in the coming days.

Bitcoin To See A Correction After Surging To $45,000

A cryptocurrency expert from Cheeky Crypto has made a daring forecast for Bitcoin. The analyst revealed his recent projections during one of Cheeky Crypto’s latest episodes on YouTube.

His predictions came in light of the price of Bitcoin closing Wednesday on a positive note, leading the altcoin market as a whole with it. As the new trading day began, BTC’s price broke above the consolidation, signaling that bulls have returned to the fore.

Cheeky Crypto analyst’s latest analysis delves into the present trading range for Bitcoin. In the analysis, the expert talked about a potential surge to the upside that will take BTC to $45,000. 

He defined the current stage as a continuation pattern and forecasted that after the range is done, there will be an upward breakout. The analyst mentioned that volume profiles have been declining throughout the market’s range, which gave him the belief that the price will increase to $45,000.

However, he believes a notable correction will occur after BTC reaches the aforementioned price level. Meanwhile, given the positioning on the Stochastic Relative Strength Index (RSI), he anticipates a further decline to $30,000.

He underscored that there is resistance at the 50 Exponential Moving Average (EMA) and support at the 50 Simple Moving Average (SMA) for BTC’s present trading range. If the 50 EMA is breached, Bitcoin may test the 50 EMA once again, and the 200 EMA would provide extra support.

Furthermore, the analyst looked at a series of indications throughout the hourly, daily, and weekly time periods. He noted key levels of support, resistance, and indicators to inspect for prospective market changes and momentum, like the RSI and the stochastic RSI.

BTC’s Price Surges Above $44,000, Eyes $45,000

Amid the recent bullish rally encompassing the crypto market, Bitcoin’s price has risen over $44,000. This marks the first time this month that the crypto asset has reached this level, suggesting market recovery.

The recent surge has sent quite a positive sentiment in the entire crypto space. It is believed that the rise might be due to the anticipation around the Ethereum Spot ETFs and BTC ETF options. Although, in comparison to last month, trend levels are still low, indicating that one should stay vigilant. 

As of the time of writing, the price of Bitcoin has increased by over 4% in the past 24 hours, trading at $44,704. In addition, its market cap and trading volume have increased by over 4% and 47% in the past day.

The Bitcoin price has experienced a notable increase of over 4% in the last 12 hours, marking a departure from the recent lull. This movement follows a bull pennant breakout, with the price of Bitcoin now aiming for the $55,000 mark.

The 4-hour (BTC/USD) chart below shows Bitcoin trading at $44,609, having just breached the confines of a bullish pennant pattern—a bullish continuation signal frequently followed by an upward price trajectory.

What This Means For Bitcoin Price

The pennant, which is characterized by converging trend lines following a substantial price move, signifies a pause in trading before the market resumes its prior uptrend. The breakout from the pennant suggests a continuation of the bullish trend with a potential target that is often extrapolated from the length of the prior move, known as the flagpole, which initiated the pennant formation.

Looking at the moving averages, Bitcoin has displayed a golden cross pattern, with the 20-period EMA (currently at $43,389) ascending above the 50-period EMA (currently at $43,049) and the 100-period EMA (currently at $42,727). This cross underpins the bullish sentiment in the market.

Volume, a key indicator of the strength behind price movements, has also shown an uptick as the breakout occurred, further validating the bullish scenario.

The Fibonacci retracement tool, applied from the swing high at $49,092 to the swing low at $38,484, shows Bitcoin’s price breaking above the 0.5 ($43,788) retracement level. The next critical levels to watch are the 0.618 ($45,040) and the 0.786 ($46,822) Fibonacci levels, which may serve as resistances in the short term.

Beyond that, the full 1.0 extension ($49,092) is on the horizon, with the 1.618 extension ($55,648) aligning closely with the target of $55,000, reinforcing its significance as a potential price objective.

The RSI, at 73.47, indicates strong buying pressure but also suggests caution as the market approaches overbought conditions. However, it is important to note that Bitcoin price in its strongest moments tends to reach very high levels, exhibiting the massive momentum. Therefore, it is essential for traders to watch for any potential divergence that may signal a weakening of the current momentum.

In conclusion, Bitcoin’s break above the bullish pennant pattern has set the stage for a possible rally towards the $55,000 mark. The intersection of the golden cross, increased volume, and the Fibonacci extension levels adds credence to the bullish outlook.

However, traders should remain vigilant of the overbought conditions that could prompt a retest of key support levels. The most crucial support is found at the 0.5 Fibonacci level ($43,788), with further support levels at 0.382 ($42,536) and 0.236 ($40,988). A sustained move below these levels could challenge the bullish thesis and shift focus to the next significant support at $38,484.

Bitcoin (BTC) shook off recent bearish whispers and roared back to life on Wednesday, clawing its way past $44,000 and marking a four-week high as the top crypto asset approaches the vaunted $45K level. This bullish charge was fueled by a potent cocktail of factors, from resurgent accumulation by major investors to record highs in US equity markets and a surprise regulatory shift from Thailand.

Bitcoin Surges Amid Whale Activity

The day began with Bitcoin hovering around $42,700, but it quickly gained momentum, reaching a peak of $44,300 – its loftiest perch since January 12th. This 2.5% surge in 24 hours outpaced the broader cryptocurrency market’s 1.6% gain, showcasing Bitcoin’s renewed vigor. While Ether (ETH) and Cardano (ADA) saw modest increases, Bitcoin clearly stole the show.

What sparked this fiery comeback? Analysts at Bitfinex had initially pointed to heightened miner selling as a potential culprit for recent price dips. However, the narrative flipped as whales, those enigmatic holders of vast Bitcoin stashes, began gobbling up the digital gold.

Crypto sleuth Ali Martinez, analyzing data from Glassnode, revealed a multi-month high of 73 wallets holding over 1,000 Bitcoins (roughly $44 million each). This whale activity signaled a renewed vote of confidence in Bitcoin’s long-term potential.

#Bitcoin whales are accumulating more $BTC! Around 73 new whales now hold 1,000 #BTC or more, marking a 3.66% increase in two weeks. pic.twitter.com/VFArJYTQZl

— Ali (@ali_charts) February 7, 2024

Adding fuel to the fire were record-breaking performances by US stock indices. The S&P 500, Dow Jones, and Nasdaq Composite all flirted with all-time highs, creating a positive ripple effect that buoyed riskier assets like Bitcoin. This synchronized surge suggested a broader investor appetite for risk, emboldening cryptocurrency bulls.

Thailand: VAT Elimination Spurs Crypto Adoption

Meanwhile, the Finance Ministry of Thailand announced the elimination of the 7% value-added tax (VAT) on Bitcoin and cryptocurrency trading.

This groundbreaking decision positions Thailand as a frontrunner in digital asset adoption, aiming to attract investment and establish the country as a regional hub for innovation.

This bold regulatory shift injected a powerful dose of optimism into the already bullish trend, showcasing government recognition of the potential of cryptocurrencies.

As Bitcoin navigates its next move, technical indicators and the supportive trend of the Simple Moving Average suggest continued upside potential. However, the cryptocurrency market remains inherently volatile, and investors should exercise caution.

Nonetheless, Wednesday’s surge, fueled by diverse factors, paints a promising picture for Bitcoin’s future, leaving many wondering if this is the beginning of another bull run. Only time will tell, but one thing is certain: the Bitcoin bulls are back, and they’re roaring loud.

Featured image from Adobe Stock, chart from TradingView

Solana, the ambitious blockchain ecosystem, showcased its resilience in the face of adversity, experiencing a significant network outage that temporarily impacted its cryptocurrency value. The recent dip in SOL’s price, dropping to $93.36 during the outage, highlighted a challenging moment for the blockchain platform. However, the subsequent rapid recovery, with SOL currently trading at $101.80, reflects the network’s ability to bounce back, marking a notable 6.6% increase in the past 24 hours.

Solana: Price Stagnation, Surge, Outage Recovery

Amidst weeks of relative price stagnation, where SOL fluctuated between $90 and $99, Solana’s recent surge contrasts sharply. This period of minimal price change mirrored a cautious sentiment prevailing in the cryptocurrency market, contributing to a 10% correction in Solana’s value, painting a tentatively bearish picture.

The network faced a four-hour and 46-minute outage, causing considerable disruption. Despite the setback, Solana’s developers swiftly addressed the issue by implementing a new software patch from Solana Labs. The recovery process involved mainnet validators restarting their nodes with the updated software, emphasizing the platform’s commitment to stability.

Block production on Solana mainnet beta resumed at 14:57 UTC, following a successful upgrade to v1.17.20 and a restart of the cluster by validator operators. Engineers will continue to monitor performance as network operations are restored.

The outage began at approximately…

— Solana Status (@SolanaStatus) February 6, 2024

Though the Solana Foundation has not issued a formal statement regarding the outage’s cause, a tweet by VanEck’s Head of Digital Assets Research, Matthew Sigel, suggested a potential bug identified and patched on Solana’s testnet might be responsible. This tweet gained traction as Solana’s co-founder, Anatoly Yakovenko, and other notable developers reshared it, underlining its significance.

Solana outage, what happened?
BPF loader, the “Berkley Packet Filter,” which is the mechanism to deploy upgrade and execute programs on Solana, failed. This seems to relate to a previous SMID (Solana Improvement Proposal) that altered some of the features including the adding a…

— matthew sigel, recovering CFA (@matthew_sigel) February 6, 2024

This incident isn’t the first time Solana faced prolonged network issues; approximately a year ago, a 19-hour blackout occurred after a network upgrade. The Solana Foundation attributed the problem to the extensive use of “custom block-forwarding software” by various applications.

Despite occasional outages, Solana has experienced a surge in activity. Token trading volume on its decentralized exchanges recently surpassed that of Ethereum, signaling growing interest and adoption. The recent network outage may have impacted investor sentiment, but the dynamic nature of the cryptocurrency market means that situations can evolve rapidly.

Solana: Price Projections, Stability Concerns Persist

Based on the latest price predictions, Solana’s price is expected to fluctuate between $92 and $119 in February 2024. The price is predicted to rise to $400 in 2025 and reach an all-time high of $445 in 2027. Market analysts and experts predict that Solana is expected to cross a price level of $517 in 2029. However, it is important to note that these predictions are subject to change and may not be entirely accurate.

Investors and enthusiasts are closely watching Solana’s trajectory as it strives to establish itself as a mainstay in blockchain ecosystems. The forthcoming root cause report from the Solana Foundation is eagerly anticipated, offering insights into the outage and potentially addressing concerns about the network’s stability.

As Solana navigates through these challenges, its ability to recover and sustain an upward trajectory will be closely monitored, playing a pivotal role in shaping its future amid the competitive cryptocurrency landscape.

Featured image from Adobe Stock, chart from TradingView

Solana is gaining bullish momentum above $100. SOL price is signaling a fresh increase and might rally further toward the $112 level.

SOL price started a fresh increase from the $93.20 support against the US Dollar.
The price is now trading above $98 and the 100 simple moving average (4 hours).
There was a break above a major bearish trend line with resistance at $96 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
The pair could continue to rally if it clears the $102.50 and $105.00 resistance levels.

Solana Price Regains Bullish Momentum

Solana price formed a base above the $93.20 support zone and recently started a fresh increase. There was a decent increase above the $96 and $98 levels.

The price is up over 7% and there was a move above the $100 level, outperforming Bitcoin and Ethereum. During the increase, the price cleared the 76.4% Fib retracement level of the downward move from the $102.46 swing high to the $93.17 low.

Besides, there was a break above a major bearish trend line with resistance at $96 on the 4-hour chart of the SOL/USD pair. Solana is now trading above $98 and the 100 simple moving average (4 hours).

Source: SOLUSD on TradingView.com

Immediate resistance is near the $102.50 level. The next major resistance is near the $105 level. A successful close above the $105 resistance could set the pace for another major increase. The next key resistance is near $112. Any more gains might send the price toward the $120 level.

Are Dips Supported in SOL?

If SOL fails to rally above the $105 resistance, it could start a downside correction. Initial support on the downside is near the $98 level.

The first major support is near the $96 level and the 100 simple moving average (4 hours), below which the price could test $93.20. If there is a close below the $93.20 support, the price could decline toward the $85 support in the near term.

Technical Indicators

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

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

Major Support Levels – $96, and $93.20.

Major Resistance Levels – $102.50, $105, and $112.

Ethereum price gained traction and climbed above $2,400. ETH is now showing bullish signs and might extend gains toward the $2,550 level.

Ethereum is gaining bullish momentum above the $2,380 zone.
The price is trading above $2,350 and the 100-hourly Simple Moving Average.
There is a key bullish trend line forming with support at $2,400 on the hourly chart of ETH/USD (data feed via Kraken).
The pair might correct lower, but the bulls could be active near the $2,400 support zone.

Ethereum Price Gains Strength

Ethereum price remained strong above the $2,250 level. ETH started another increase like Bitcoin and was able to clear a few key hurdles near the $2,350 zone.

The price jumped above the $2,400 level and tested the $2,450 resistance. A high is formed near $2,449 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the recent surge from the $2,353 swing low to the $2,449 high.

Ethereum is also trading above $2,350 and the 100-hourly Simple Moving Average. Besides, there is a key bullish trend line forming with support at $2,400 on the hourly chart of ETH/USD. The trend line is close to the 50% Fib retracement level of the recent surge from the $2,353 swing low to the $2,449 high.

On the upside, the first major resistance is near the $2,450 level. The next major resistance is near $2,500, above which the price might rise and test the $2,550 resistance.

Source: ETHUSD on TradingView.com

If the bulls remain in action, they could even pump the price above the $2,620 resistance. In the stated case, the price could rise toward the $2,700 level.

Are Dips Limited In ETH?

If Ethereum fails to clear the $2,450 resistance, it could start a downside correction. Initial support on the downside is near the $2,425 level.

The next key support could be the $2,400 zone or the trend line. A clear move below the $2,400 support might send the price toward $2,375. The main support could be $2,350. Any more losses might send the price toward the $2,240 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 – $2,375

Major Resistance Level – $2,450

Arthur Hayes, co-founder of BitMEX and a well-known figure in the crypto community, has made headlines with a bold prediction for Bitcoin (BTC).

Hayes, recognized for his unique views of the crypto space, shared his thoughts on Bitcoin’s potential trajectory in light of the current financial challenges the New York Community Bank (NYCB) faces.

NYCB, grappling with significant financial troubles, was reported by Bloomberg as having its credit rating downgraded to “junk” by Moody’s.

Hayes interprets the bank’s struggle and the broader banking sector’s difficulties as indicators of systemic issues in traditional banking. He posits that these challenges could lead to greater reliance on cryptocurrencies like Bitcoin.

The Road To $1 Million: A Bitcoin Rally Postulated

Hayes’s perspective is shaped by the view that the conventional banking model is facing sustainability issues. He argues that to address these challenges, the US Federal Reserve could print more money, leading to a deeper financial crisis.

In such a scenario, Hayes believes Bitcoin is a viable alternative, offering a degree of insulation from traditional banking sector problems. This outlook is not new to Hayes, who has consistently advocated for Bitcoin as a hedge against the instability of traditional financial systems.

Oh baby …

From junk to bankrupt, that’s the future.

And then more money printer go brrrr$BTC = $1mm pic.twitter.com/6Ia00GWYa5

— Arthur Hayes (@CryptoHayes) February 7, 2024

Delving deeper into his prediction, Arthur Hayes envisions a scenario where Bitcoin could soar to $1 million. This prediction is not unique to Hayes, as other prominent crypto figures, including Samson Mow, CEO of Jan3, share similar views.

Mow has even recently expressed confidence that Bitcoin could rapidly ascend to $1 million, potentially within days or weeks. However, he acknowledges that the exact starting point for this surge is yet to be determined.

Hayes’s recent commentary aligns with his previous analyses. In a Medium post, the BitMEX Co-Founder drew parallels between Bitcoin’s performance during the March 2023 banking crisis and its potential future trajectory.

Hayes suggested that similar to the 40% increase experienced during the previous banking crisis, Bitcoin could witness a significant rally following the current challenges.

Halving Events: Catalysts For Bitcoin’s Value Surge

The conversation around Bitcoin’s potential price surge is linked to its halving events. Occurring approximately every four years, these events halve the reward for mining new Bitcoin blocks, reducing the rate at which new BTCs are created.

The next Bitcoin halving, scheduled for April this year, will decrease the daily production of Bitcoin from 900 to 450 coins. Historically, these supply reductions have led to significant price movements in Bitcoin’s value, lending credence to predictions of substantial future price increases.

While enthusiasts like Hayes and Mow are bullish about Bitcoin’s prospects of $1 million, there are voices of caution in the crypto community. Tuur Demeester, another Bitcoin evangelist, has recently expressed skepticism regarding Bitcoin’s ability to reach the $1 million mark by 2028, the next Bitcoin halving after this year.

In response to a graph shared by investor Fred Krueger, which projected Bitcoin to reach $1 million by 2028, Demeester acknowledged the unpredictable nature of markets and their potential to defy even well-constructed models.

Will it take BTC until after summer 2028 to reach $1M? I don’t know, but I do know that every beautiful model (as is this one ) is destined to be broken by Mr. Market. https://t.co/GcmhfL2C16

— Tuur Demeester (@TuurDemeester) February 2, 2024

Featured image from Unsplash, Chart from TradingView

Data shows the Bitcoin Coinbase Premium Gap is currently negative. Here’s what this could mean for the asset’s recent attempt at recovery.

Bitcoin Coinbase Premium Gap Has Been Deep Red Recently

An analyst in a CryptoQuant Quicktake post pointed out that the Coinbase Premium Gap has been negative recently. The “Coinbase Premium Gap” here refers to an indicator that tracks the difference between the Bitcoin prices listed on cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).

When the value of this metric is positive, it means that the price listed on Coinbase is greater than that on Binance right now. Such a trend implies that the former platform is currently witnessing a higher buying pressure or a lower selling pressure than the latter.

On the other hand, the negative indicator suggests Coinbase is witnessing relatively high selling pressure as the price listed here is lower than on Binance.

Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Gap over the last few years:

As displayed in the above graph, the Bitcoin Coinbase Premium Gap has plunged into negative values recently, implying that the selling pressure on Coinbase has risen.

Earlier, the metric had a notable positive streak, and this run coincided with a rally in the cryptocurrency’s price. The asset fell as the indicator flipped towards red, suggesting increased selling pressure may have contributed.

US-based institutional investors commonly use Coinbase, while Binance has a more global audience. As such, the Premium Gap can provide hints about American whales’ buying or selling behavior.

It would appear that these institutional players were buying during the recent rally, but as soon as they switched towards selling, the price suffered for it. The last bull market also saw significant buying pressure from these investors, while the bear market saw the indicator restricted to negative or neutral levels.

Bitcoin has been trying to recover from its recent drawdown, but from the chart, it’s apparent that the Coinbase Premium Gap is still at deep red values.

Thus, the fact that large American investors are falling behind in buying pressure may not bode well for this recovery attempt if the recent pattern followed by the metric is anything to go by.

BTC Price

Since the visit below the $39,000 level, Bitcoin has seen a notable rebound below the $43,000 mark. The chart below shows how the coin has performed over the past month.

This recovery has stood so far, but given the negative Coinbase Premium Gap, the cryptocurrency may encounter some resistance soon.