Blockchain

Bitcoin price remained in a range above the $45,000 support. BTC failed to climb higher above the $48,000 resistance despite approval of spot ETF.

Bitcoin is still struggling to clear the $47,800 and $48,000 resistance levels.
The price is trading above $45,600 and the 100 hourly Simple moving average.
There was a break above a major contracting triangle with resistance near $46,550 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair could start a fresh decline if the bears continue to protect the $48,000 resistance.

Bitcoin Price Upsides Capped

Bitcoin price remained stable above the $45,500 resistance zone. Finally, the SEC approved all 11 spot ETF. BTC did climb higher above the $46,500 and $46,600 resistance levels after the news.

There was a break above a major contracting triangle with resistance near $46,550 on the hourly chart of the BTC/USD pair. However, the bears were still active near the $47,350 and $47,800 levels. A high was formed near $47,699 and the price is now showing a few bearish signs.

There was a minor decline below the $47,000 level. Bitcoin declined below the 23.6% Fib retracement level of the recent increase from the $44,333 swing low to the $47,699 high.

The price is now trading above $45,600 and the 100 hourly Simple moving average. On the upside, immediate resistance is near the $47,000 level. The first major resistance is $47,350. A clear move above the $47,350 resistance could send the price toward the $47,800 resistance.

Source: BTCUSD on TradingView.com

The next resistance is now forming near the $48,000 level. A close above the $48,000 level could send the price further higher. The next major resistance sits at $49,250.

Another Decline In BTC?

If Bitcoin fails to rise above the $47,350 resistance zone, it could start a fresh decline. Immediate support on the downside is near the $46,550 level.

The next major support is $46,000 or the 50% Fib retracement level of the recent increase from the $44,333 swing low to the $47,699 high. If there is a move below $46,000, the price could gain bearish momentum. In the stated case, the price could drop toward the $45,150 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 50 level.

Major Support Levels – $46,500, followed by $46,000.

Major Resistance Levels – $47,000, $47,350, and $47,800.

In a landmark move, PayPal, the payment processor, has incentivized PYUSD liquidity on Curve Finance, the world’s largest stablecoin decentralized exchange (DEX) by trading volume. 

PayPal Incentivizing PYUSD Liquidity Via Curve

This development, which Stake DAO first captured on January 10, sent shockwaves through the crypto community, with many experts predicting that Curve is on its way to becoming the go-to platform for institutional and corporate trading of on-chain stablecoins.

PayPal’s decision to incentivize PYUSD liquidity on Curve is a significant step forward for adopting stablecoins and promoting decentralized finance (DeFi) protocols in general. By providing attractive rewards for liquidity providers, PayPal is signaling its commitment to the growth of this rapidly evolving sector.

As part of its incentive program, PayPal has deposited vote incentives worth $132k in PYUSD on Votemarket, a vote incentive platform. These rewards are designed to encourage users to increase their liquidity on Curve. In addition, PayPal will offer direct rewards to liquidity providers distributed in PYUSD, with an APY of 11%.

Observers note that the $66,000 allocated weekly to Votemarket could direct at least $55k in CRV, a governance token on Curve Finance, to the PYUSD-USDC pool.

Institutional Endorsement: Will CRV Rally Above $0.75?

With PayPal’s endorsement, Curve may attract even more liquidity and cement its position as a leader in on-chain stablecoin trading. It is unclear whether other Wall Street heavyweights on the wings are ready to enhance liquidity via Curve or other DeFi protocols. Their involvement will validate Curve and DeFi’s potential, accelerating adoption among institutional investors.

According to DeFiLlama data on January 10, Curve has a total value locked (TVL) of $1.82 billion, with a big chunk of this in Ethereum. The protocol has deployed in Ethereum layer-2s and other Ethereum Virtual Machine (EVM) compatible platforms, including Arbitrum.

For now, CRV, the native token of Curve, remains under pressure. Looking at the performance in the daily chart, the token is down 30% from recent December peaks, sliding when writing. 

From price technical analysis, any break above $0.75 could spark more demand, lifting the token to new 2024 highs. Presently, CRV is trending inside a bear candlestick, signaling general weakness. In the short term, sharp losses below $0.45 might trigger a sell-off. CRV risks dropping to September 2023 lows of around $0.40 in that case.

XRP Whales are causing a stir in the XRP community as holders speculate on what could be the reason for their latest moves. On-chain data shows that these whales have moved a significant portion of their holdings in the last 24 hours.  

Over 63 Million XRP Tokens Moved

Data from Whale Alert shows that two significant XRP transactions have occurred recently. The first was a transfer of 26,400,000 XRP from an unknown wallet to the crypto exchange Bitstamp. The second was a transfer of 36,964,930 XRP from the crypto exchange MEXC to an unknown wallet. 

It is normal for transactions of such magnitude to raise eyebrows, considering the impact that they could have on XRP’s price. Specifically, such transfers to centralized exchanges usually suggest that the whale could be looking to dump the crypto tokens on retail investors. If so, that could potentially lead to a significant decline in the altcoin’s price. 

In this case, it is, however, worth mentioning that the first transaction in question happens to be a recurrent one, as huge sums of XRP tokens have been reported on a couple of occasions to have moved from that same wallet to Bitstamp. 

These transactions are believed to occur as a result of Ripple’s strategic partnership with the crypto exchange, with the latter using the crypto firm’s payment services. Meanwhile, the nature of the second transaction also allays fears of an impending sell-off. This is because the tokens were sent from the MEXC to an unknown wallet and not the other way around. 

As such, it is more likely to be a whale who is moving their XRP holdings to cold storage. This is more plausible, considering that these whales may soon see huge gains based on recent price predictions. 

Why Price Could Rise To Over A Dollar Soon

Crypto analyst Ali Martinez recently offered a bullish narrative for the token’s price. He noted how the governing pattern behind the crypto token’s price action since June 2022 looks to be an ascending parallel channel. If this pattern continues, XRP could rise to between $0.80 and $1.10, the analyst hinted. Those price levels are the channel’s middle and upper boundaries. 

In a subsequent X post, the analyst also suggested that now may be a good time for those looking to get in on the token. He stated that the weighted market sentiment for XRP had dipped to its lowest negative point since mid-May 2023. Moments like this can “present unique opportunities in the market,” Martinez claims.  

At the time of writing, XRP is trading at around $0.56, down over 1% in the last 24 hours, according to data from CoinMarketCap. 

On-chain data shows that Bitcoin short-term holders have deposited $2 billion in BTC to exchanges, the fourth largest amount in the last two years.

Bitcoin Short-Term Holder Exchange Inflows Have Spiked Up

As analyst James V. Straten explained in a new post on X, the BTC short-term holders have potentially participated in a very sizeable selloff recently. The “short-term holders” (STHs) are the Bitcoin investors who bought their coins within the last 155 days.

The STHs comprise one of the two main divisions of the BTC market based on holding time; the other segment is called the “long-term holder” (LTH) cohort and includes the holders who mature past the 155-day cutoff.

Statistically, the probability that a holder would sell or move their coins on the blockchain drops the longer they keep them dormant. As such, the STHs are more likely to participate in selling at any point than the LTHs.

This behavior of the STHs is usually especially apparent whenever the cryptocurrency observes a sharp rally or crash, as these fickle-minded investors can’t help but fall prey to the FOMO or FUD of the situation.

One way to track whether the STHs are selling or not is through their exchange inflows. Investors may deposit to these central entities when they want to sell, so the volume going to these platforms can naturally provide some measure of the degree of selling pressure the holders are currently exerting.

Now, here is a chart that shows the trend in the Bitcoin STH transfer volume going towards exchanges (in USD) over the past couple of years:

As displayed in the above graph, the Bitcoin volume going from the wallets held by the STHs toward the exchanges has registered a spike recently. “Yesterday, over $2B worth of Bitcoin got sent to exchanges from STHs,” notes Straten.

From the chart, it’s apparent that during the last couple of years, there have only been three instances where the market saw these weak hands transfer more significant amounts to these platforms.

According to the analyst, $1.3 billion of the total $2 billion inflow volume from the STHs involved coins carrying some profits. While the rest, $750 million, moved at a loss.

If these inflows were indeed for selling, it would appear that both types of sellers were in the market during the spike: those capitulating at a loss and those harvesting their profits. Straten remarks that the profitability ratio of this inflow volume is a bit suspicious, as the asset mostly moved flat or negative during this period.

This potential selloff from the STHs has come as the Bitcoin spot ETF is not far from being decided by the US SEC. The commission’s X account was also compromised earlier, and someone posted a fake approval announcement using it, to which the market reacted strongly.

Given the timing of the inflows, it would appear that the BTC STHs expect the event to be a sell-the-news type of deal, so once the decision is made, more inflows could follow.

BTC Price

At the time of writing, Bitcoin is trading at around $45,200, up more than 4% in the past week.

In a groundbreaking development for the cryptocurrency and Bitcoin market, the United States Securities and Exchange Commission (SEC) has approved all 11 spot Bitcoin ETFs submitted by the world’s largest asset managers. 

Bitcoin ETFs Align With Exchange Act Standards

In its official filing, the SEC stated that each proposal sought to list and trade shares of a trust that would hold spot Bitcoin, either wholly or partially. 

Importantly, the commission found that the proposals were consistent with the provisions of the Exchange Act and the applicable rules and regulations governing national securities exchanges. 

Specifically, the SEC determined that the proposals adhere to the requirements outlined in Section 6(b)(5) of the Exchange Act, which includes preventing fraudulent and manipulative acts and practices to protect investors and the public interest.

The approval of these Bitcoin ETFs marks an important milestone in the maturation of the cryptocurrency market. 

However, despite the significant news, the Bitcoin price has remained stable at the $46,200 level, defying some expectations of immediate price surges following the SEC’s decision. 

Nevertheless, it is important to note that the true impact of these index funds is anticipated to unfold over the coming years, once institutions and retail investors fully enter the market.

New Era For Bitcoin

According to the official filing, trading for the approved Bitcoin ETFs is scheduled to commence tomorrow, enabling market participants to gain exposure to Bitcoin through regulated and traditional investment vehicles. 

The introduction of these Bitcoin ETFs is expected to attract a broader range of investors, including institutional players, and contribute to increased liquidity and market efficiency.

Ultimately, as institutional and retail investor participation grows, the Bitcoin market is poised for significant developments and further mainstream adoption. 

The approval of these ETFs represents a pivotal moment in the ongoing integration of cryptocurrencies into the traditional financial system. It sets the stage for future growth, innovation, and the potential for broader acceptance of digital assets in the investment landscape.

Featured image from Shutterstock, chart from TradingView.com 

Renowned finance author Robert Kiyosaki has shared his thoughts on the future trajectory of the Bitcoin price. The author, who is no stranger to the crypto community, says that Bitcoin could rise to $150,000 while revealing what will spark this significant price surge. 

What Will Spark Bitcoin’s Rise To $150,000

Kiyosaki hinted in a post on his X (formerly Twitter) platform that the Spot Bitcoin ETFs will be the catalyst for Bitcoin’s rise to $150,000. He, however, didn’t say exactly when Bitcoin will hit this price level as he only stated that it will happen soon. With this prediction, the author joins a growing list of persons who believe that the approval of these funds will be massive for Bitcoin. 

Kiyosaki, who authored the best-selling book ‘Rich Dad, Poor Dad, also expressed his excitement at getting in on the flagship crypto token early. He expects Bitcoin’s value to keep rising as he says he will keep buying adding more BTC to his portfolio. He also made a case for Gold and Silver as Inflation continues to be at a high. According to him, the only “losers” are those who save “fake fiat US dollars.”

The renowned author, who happens to be an advocate of financial literacy, has always been outspoken about Bitcoin. At one time, he urged everyone to invest in the crypto token to avoid becoming poorer due to the actions of the government. He had also labeled Bitcoin as the “best protection” against a potential wave of hyperinflation. 

What Bitcoin Is Saying On the Charts

Crypto analyst Ali Martinez has provided insight into Bitcoin’s trajectory from a technical analysis angle. Martinez mentioned in a post on his X platform that Bitcoin has established a solid support zone at $42,000. This support level is said to be backed by 2.48 million addresses holding over 1.12 million BTC. 

The analyst further stated that Bitcoin could potentially rise to as high as $55,000 with no “major supply zones in sight.” However, the flagship crypto token will first need to breach the $48,000 resistance. Once that happens, on-chain data suggests “a clear path ahead,” Martinez says. 

In a subsequent post, the analyst also offered a bearish narrative as Bitcoin’s price could face a major correction. Martinez noted that the TD Sequential is currently flashing a sell signal on Bitcoin’s weekly chart. This indicator is said to be forecasting a correction that could last one to four weeks before the crypto token resumes its uptrend. 

At the time of writing, Bitcoin is trading at around $46,000, down over 1% in the last 24 hours according to data from CoinMarketCap.  

The year 2023 witnessed a remarkable surge in crypto payments, signaling a significant milestone in adopting digital currencies for retail and e-commerce transactions. 

According to a recent report by CoinGate, a crypto payment processor firm, the number of crypto payments processed reached staggering heights, showcasing robust growth and diversification in the crypto landscape. 

Massive Surge In Crypto Payments

In 2023, CoinGate processed an astounding 1,294,058 cryptocurrency payments, marking a 39.4% increase compared to the previous record. This exponential growth, equivalent to one payment every 24 seconds, underscores the accelerating pace of crypto adoption. 

Notably, approximately one-third (32.35%) of all transactions processed by CoinGate in the last ten years occurred in 2023, emphasizing the surge in the popularity of digital currencies.

Per the report, integrating Binance Pay wallet into CoinGate’s payment services in March 2023 played a significant role in driving this growth. 

Binance Pay accounted for 8.2% of all crypto payments in 2023, showcasing a steady increase in usage throughout the year. This upward trend, from 4.5% in March to 13% in December, indicates the growing adoption and usage of Binance Pay as a preferred payment method.

Lightning Network Surges In Popularity

Moreover, CoinGate’s report highlights the increasing maturity and acceptance of the Lightning Network, an essential component of Bitcoin payments. 

In 2023, the Lightning Network facilitated 7.8% of all Bitcoin payments processed by CoinGate, representing a notable increase from previous years. 

Furthermore, the overall number of Lightning Network payments grew by 35.9% compared to the previous year, indicating a growing reliance on this technology. 

However, Bitcoin, long considered the dominant cryptocurrency for payments, saw a decline in its share of total transactions processed by CoinGate. While Bitcoin accounted for 54.8% of all transactions in 2021, its share dropped to 35.6% in 2023. 

Stablecoins, particularly Tether’s USDT, emerged as a popular choice for crypto payments in 2023. The usage of USDT increased from 15.1% in 2022 to an average of 25.4% in 2023, indicating a shift towards stablecoins due to their perceived stability and reliability. 

Alternative Payment Solutions 

According to CoinGate’s report, crypto-friendly merchants experienced remarkable success in 2023, with a significant portion of their sales attributed to cryptocurrency payments. 

Eldorado.gg, a gold and accounts marketplace for gamers, reported crypto payments contributing to 3% of their total sales. IPRoyal, a proxy service provider, saw over 30% of their payments made in cryptocurrencies. 

Hostinger, a web hosting provider, captured nearly one-fourth of all crypto-paying customers, showcasing the effectiveness of alternative payment solutions in catering to diverse customer needs.

Overall, 2023 demonstrated a paradigm shift in the adoption of cryptocurrency payments. The surge in transactions processed by CoinGate, the increasing usage of Binance Pay and the Lightning Network, and the diversification of cryptocurrencies used for payments all point towards a new era of acceptance and trust in digital currencies. 

As crypto-friendly merchants reap the benefits of embracing these payment methods, it becomes evident that cryptocurrency payments offer sales growth, solutions for the unbanked population, and global accessibility. 

With the stage set for further expansion in 2024, the transformative power of cryptocurrency payments continues to reshape the retail and e-commerce landscape.

Featured image from Shutterstock, chart from TradingView.com 

In a historic move that sets a precedent for decentralized autonomous organizations (DAOs), 1inch DAO, the entity behind the 1inch Network, has voted to secure “legal advisory services” from STORM Partners. Notably, this decision comes amid growing regulatory scrutiny on the crypto and decentralized finance (DeFi) sectors.

1inch DAO Votes To Onboard STORM Partners For Legal Advisory Services

Following voting that ended on January 9–overwhelmingly supported by the 1inch community–holders decided to onboard STORM Partners. This marks a significant step forward in the DAO’s efforts to navigate the complex legal landscape and protect its members. 

With STORM Partners on board, 1inch DAO becomes the first autonomous organization in the broader crypto ecosystem to access expert guidance on compliance, governance, and legal defense. Out of this landmark move, the DAO will receive expert legal advice.

As such, they will strive to operate within the confines of applicable laws and regulations in the United States and beyond. 

This move is particularly noteworthy given the recent United States Securities and Exchange Commission (SEC) concerns over the crypto industry and the DeFi sector. From lawsuits, the agency noted that individuals who engage in illegal activities, including offering unregistered securities, via a DAO could be sued individually.

To illustrate, following a lawsuit from the SEC, BarnBridge DAO agreed to stop selling what the agency said were “unregistered securities.” As part of the settlement, the DAO and its two founders, Tyler Ward and Troy Murray, agreed to pay $1.7 million in damages.

Lawsuits Have Devastated DAOs In The Past

By onboarding legal counsel, 1inch DAO proactively addresses these concerns. It also aims to protect community members against the bruises of the law.

The DAO said the decision was a “deliberate effort to balance preserving decentralization and addressing operational challenges.” Through STORM Partners, the DAO will have a framework and receive legal support, laying a path for others to follow.

This decision considers the adverse impact of a lawsuit from a government agency like the SEC. In June 2023, US District Judge William H. Orrick ruled in favor of the US Commodity Futures Trading Commission (CFTC), agreeing that Ooki DAO issued unregistered commodities.

In a statement, the 1inchDAO new legal partner, STORM, stated the following, hinting at the services and the way they will attempt to protect the entity:

Our team will cover, among others, cross-jurisdiction regulatory compliance, contractual agreements, DAO governance framework, members’ liability, legal personality, asset protection, intellectual property, enforcement of rights and defence against external claims. Our legal representation, underpinned by community-guided Power of Attorney, is meant to ensure the DAO’s stability, efficiency and longevity.

Furthermore, by onboarding a legal advisor, the community aims to protect the DAO’s decentralization while maintaining “regulatory compliance.” It remains to be seen if other DAOs will follow suit and vote to elect a legal representative for their communities.

Ethereum, the second-largest crypto by market capitalization, is currently exhibiting signs of a bullish breakout, as observed by two prominent analysts in the crypto space. According to World Of Charts, Ethereum shows consolidation within a bullish pennant pattern.

This technical formation typically suggests continuing an upward trend in Ethereum’s case. According to the analyst, if Ethereum successfully breaks out of this pattern, it could surge toward a significant level of $3,500.

$Eth

Trend Is Up Consolidating In Bullish Pennant Expecting Breakout Soon Incase Of Successful Breakout Expecting Move Towards 3500$#Crypto #Eth #Ethusdt #Ethereum pic.twitter.com/nlqbMfh3k0

— World Of Charts (@WorldOfCharts1) January 10, 2024

Crucial Resistance Zone: Ethereum Path To Breakout

Adding to World Of Charts’ optimistic outlook, crypto trader Skew has identified the $2,320–$2,382 range as a key resistance zone for Ethereum. This price range has historically acted as a barrier to Ethereum’s upward movement, with “numerous rejections” witnessed at these levels.

Skew emphasizes the importance of Ethereum closing above $2,400 on the 1-hour and 4-hour charts. This decisive move would breach the resistance zone and confirm Ethereum’s bullish momentum.

Skew also noted that technical indicators such as the Relative Strength Index (RSI) and stochastics still display significant momentum, supporting the potential for Ethereum’s continued upward trend.

$ETH 4H
Maybe it’s time for ETH to shine & run, would definitely help if the BTC Spot ETF is legitimately approved later

$2320 – $2382 has proven to be strong resistance with numerous rejections

the key confirmation would be a solid 1H & 4H close above $2400

4H trend &… pic.twitter.com/taWbcC7eWY

— Skew Δ (@52kskew) January 10, 2024

Ethereum’s Solo Bull Run Amid Market Turbulence

Despite recent market turbulence, including the plunge of several cryptocurrencies, including BTC, following the Securities and Exchange Commission’s (SEC) fake spot ETF approval announcement, Ethereum has shown resilience and is currently in the green.

Over the past 24 hours, Ethereum has climbed by 5.5%, surpassing the $2,400 mark before a slight retracement to around $2,381 at the time of writing. This bullish trend is further supported by increased trading volume, which surged below $30 billion to approximately $39 billion in the past day.

Skew suggests that Ethereum’s bullish momentum could receive an additional boost from the potential approval of a Spot BTC ETF. If such approval were to come to fruition, it could further support Ethereum’s upward trajectory.

This sentiment is echoed by Michaël van de Poppe, another renowned crypto analyst, who also foresees Ethereum’s approach to its 2022 low as a precursor to a potential breakout. Van de Poppe believes that Ethereum’s current positioning near last year’s low could be crucial in absorbing liquidity and fueling a bullish breakout.

Van de Poppe’s analysis highlights the broader market context, specifically the awaited decision on a spot Bitcoin ETF in the US. An approval, he predicts, could notably impact the ETH/BTC trading pair, potentially triggering a sharp price movement known as a liquidation candle.

Following this, Van de Poppe anticipates a significant reallocation of funds into Ethereum, accompanied by a bullish weekly divergence, propelling Ethereum onto an upward trajectory.

Featured image from Unsplash, Chart from TradingView

Crypto analyst Ali Martinez has predicted an outstanding long-term price for Cardano (ADA), although subject to some downside before the target is reached. The Cardano (ADA) price is currently declining, down by 4.2% in the past 24 hours and 16.7% in a larger timeframe. The crypto did manage to turn bullish for a few hours yesterday, jumping 14.6% from a low of $0.4727 to $0.5421. 

Most of this price gain has been shed off and the crypto is now trading at $0.5079, confirming an ongoing consolidation. However, according to crypto analyst Ali Martinez, Cardano’s current consolidation mirrors that of its 2018-2020 phase, which is preparing the groundwork for a strong bull run.

ADA Mirroring Its Past Performance

Cryptocurrencies are known to repeat previous price actions, giving analysts an idea of what to expect based on the outcome of the previous performance. In this vein, a Cardano technical analysis shared on social media platform X by Ali Martinez indicated that ADA’s current consolidation is reminiscent of ADA’s price action whose breakout led to a 2,980% price surge. 

According to the weekly timeframe chart shared by Martinez, ADA consolidated for 665 days between 2018 to 2020 before going on a price surge to reach $3.058, its current all-time high. If a repeat of this pattern were to successfully play out, we might see ADA continue to consolidate around this level until April. Consequently, a repeat of a 2,980% price surge from the current price would put a price target around $15.

So far, #Cardano price action is echoing its 2018-2020 pattern!

If this trend continues, we might see $ADA consolidating around its current levels until April, setting the stage for a potential resumption of the bull run. pic.twitter.com/bMy8zrxQIp

— Ali (@ali_charts) January 8, 2024

Current State Of Cardano

Cardano went through a price surge in the last quarter of 2023, mirroring a surge in July 2020. As a result, ADA recorded a 173% gain from $0.2435 in October to a yearly high of $0.6655 in December. However, the crypto has been on a decline since then. A recent larger decline among altcoins has also contributed to a further price decline.

On-chain data from IntoTheBlock shows that 47.45% of ADA addresses are currently making a profit. Notably, an interpretation of Martinez’s technical analysis of Cardano points to this number stalling at least until April. For long-term believers in ADA, the current consolidation is an opportunity to increase their holdings for the next bull run.

Cardano still remains one of the most actively developed blockchain ecosystems, and a new report shows that development activity has outpaced that of Ethereum and Avalanche in the past 30 days. 

A continuation of this growth coupled with a few other bullish market factors like the potential approval of Spot Bitcoin ETFs in the US could lead to ADA going on a sustained price surge before April.