Crypto analyst Egrag Crypto has revealed key price levels to watch out for in one of his latest analyses of XRP. The analyst hinted that these prices could be crucial especially following his prediction that the crypto token will rise to $5 in 90 days. 

Targets That Confirm An XRP Bull Run 

In a post on his X (formerly Twitter) platform, Egrag highlighted $0.60, $0.75, $0.95, and $1.3 as price levels to keep an eye out for as they will validate a bullish trend. He says, “A weekly close above any of these levels signifies robust support and a continued upward trajectory.” 

#XRP Blue Channel vs. Red Channel Unveiled:

To decipher the intricate details within the chart below, let’s break it down into three crucial sections:

1) Blue Channel in comparison to Red Channel:
Should the Blue Channel align with the Red Channel, a potential flash crash to… pic.twitter.com/2w5hmoH872

— EGRAG CRYPTO (@egragcrypto) January 19, 2024

Further elaborating on their importance, he noted that these targets “offer crucial insights into significant price behavior.” Considering that XRP has continued to trade below those levels, the token hitting any of those targets will easily suggest that the sentiment towards the altcoin has changed. 

Meanwhile, the crypto analyst also raised the possibility of XRP experiencing a 50% drop in pursuit of a move similar to the one in 2017, when XRP surged by 61,000%. Interestingly, Egarag believes that XRP replicating such a similar move will see the crypto token rise to as high as $27 in the next bull run. 

How XRP Could Crash To $0.28

Also offering a bearish narrative for XRP, Egrag stated that XRP could witness a flash crash to $0.28 should the blue channel (visible in the chart he shared) align with the red channel. If that were to happen, a subsequent rise to $0.41 from $0.28 could unfold, the analyst claims.

Egrag believes that these channels add more intrigue to XRP’s price action, considering that the crypto token has been navigating the blue channel for nearly 600 days since its breakout in May 2022. On the other hand, XRP is also said to have spent 580 days in the red channel before making a significant surge.  

As part of this bearish projection, the crypto analyst raised the prospect of a further BTC decline, dragging XRP alongside. Egrag claims that this could serve as the “ultimate shakeout, especially if market makers shake out the remaining weak hands.”

These market makers are the same persons that Egrag says “may engineer an independent surge,” which would propel XRP’s price to $5. If that doesn’t happen and the market ends up experiencing the worst-case scenario, the analyst urged everyone to seize the opportunity to obtain XRP at a “more favorable price.”

At the time of writing, XRP is trading at $0.54, down in the last 24 hours, according to data from CoinMarketCap. 

Featured image from Shutterstock

In the midst of the recent turbulence within the cryptocurrency market, Chainlink (LINK) has emerged as a notable outlier, demonstrating resilience against the sweeping downturn that has left major altcoins crumbling.

Surprisingly, LINK has steadfastly clung to the $16 mark, showcasing a 14% rally in the last seven days and defying the prevailing market trends. However, investors are left to ponder whether this is a promising sign for Chainlink’s future or merely a momentary blip in the radar.

Massive Chainlink Whale Purchase

This positive signal coincides with a notable $8.9 million whale purchase, injecting a substantial dose of confidence into the market. Yet, beneath the surface, murmurs of a whale exodus are causing concern.

After the price of $LINK dropped today, a whale spent 8.9M$ to buy 601,949 $LINK at $14.81 with 3 new wallets.https://t.co/W7BjWM2XsP pic.twitter.com/xlFPqWv4ko

— Lookonchain (@lookonchain) January 19, 2024

This purchase also dampens some worries especially following a recent selling spree by Chainlink investors, who offloaded a significant 2.3 million tokens since January 12th.

The positive signal also comes after recent concerns in the absence of a noteworthy uptick in fundamental growth metrics such as network usage. Without substantial real-world adoption, the coveted $20 price point for Chainlink might remain an elusive mirage.

Chainlink’s Strengths Persist Amid Market Uncertainty

Meanwhile, IntoTheBlock’s global in/out of the money (GIOM) chart uses the historical entry prices of the current LINK holders to highlight critical levels of support and resistance.

In the near term, investors may opt for short-covering maneuvers to prevent falling into a net-loss position, a strategy that could lead to the consolidation of Chainlink’s (LINK) price just below the $15 threshold in the upcoming days.

Conversely, bullish market participants could potentially counter this bearish scenario by successfully pushing the price beyond the $20 territory. However, a potential hurdle arises from the fact that over 94,000 holders have accumulated 51 million LINK at a minimum price of $18.8.

This sizable accumulation suggests the possibility of bears establishing a formidable sell-wall in that price range, potentially triggering a retreat in LINK’s value.

The interplay of these dynamics underscores the delicate balance between short-term tactical moves and broader market sentiment that currently characterizes the trajectory of Chainlink’s price.

Despite the prevailing turbulence, the core strengths of Chainlink should not be overlooked. Its established role as a leading oracle provider within the blockchain ecosystem remains undiminished.

If the broader crypto market stages a recovery and fundamental growth aligns, a resurgence for Chainlink is not out of the realm of possibility.

Featured image from Freepik

The crypto market might be about to experience a further downturn as a recent development suggests an imminent selloff is on the horizon. This comes following the recent market moves by Grayscale, which is believed to be responsible for the recent decline in Bitcoin’s price. 

Celsius And FTX Crypto Funds On The Move

On-chain data shows that defunct crypto lender Celsius Network recently transferred 34.08 million MATIC to the crypto exchange Binance. Meanwhile, a wallet address linked to Alameda Research, the sister company of defunct crypto exchange FTX, also recently sent 135 WBTC to Binance, 207 WBTC, and 1150 ETH to Wintermute.

These transactions are more significant, considering that Celsius and FTX are in a bankruptcy liquidation process as they look to repay their customers. As such, transferring these funds to trading platforms like Binance suggests that these tokens could be dumped on the market soon enough. 

Celsius, in particular, is known to have been making major moves in the market as of late. NewsBTC had recently reported how Celsisus had transferred $125 million worth of ETH last week to various crypto exchanges, something which could have possibly contributed to recent bloodbaths in the crypto market. 

On the other hand, selloffs by Alameda could form part of FTX’s repayment plan, which it filed back in December 2023. This is a huge possibility, considering the defunct trading firm was used as a tool by Sam Bankman-Fried (SBF) to defraud FTX customers. 

Another Whale Contributing To Recent Market Downturn

Grayscale is also believed to have contributed greatly to the recent downturn in the crypto market. The asset manager has had to offload some of its BTC holdings in a bid to fulfill redemptions from GBTC investors. These investors have been taking profits ever since GBTC was converted into a Spot Bitcoin ETF, with an outflow of over $2 billion from the fund since then. 

Crypto analytics platform Arkham Intelligence recently revealed that Grayscale had sent out another 12,870 BTC from their wallets. That figure brought the total number of BTC that the asset manager has deposited into Coinbase to 47,900 BTC, which is said to be worth around $1.97 billion based on current prices.

As noted by Arkham, these transactions likely represent redemptions of BTC shares. Interstingly, JP Morgan predicts that Grayscale’s GBTC could experience an outflow of up to $3 billion. If so, then the market could be in for more pain as the asset manager would have to offload more BTC to fulfill these redemptions. 

The story has not been much different for the price of Bitcoin this week, as the premier cryptocurrency has struggled to capitalize on its recent advancements. According to data from CoinGecko, BTC is down by more than 3% in the past week, putting doubts over the continuation of the bull run.

However, the latest on-chain revelation has offered some relief, suggesting that the value of Bitcoin might be up for substantial recovery over the next few weeks. 

Can Whale Accumulation Trigger Continuation Of Bull Cycle?

Popular crypto analyst Ali Martinez revealed – via a post on the X platform – that the number of Bitcoin whales has witnessed a significant increase over the past few days. This is based on the “Number of Entities With At Least 1,000 BTC Balance” metric from the on-chain analytics firm Glassnode.

According to the latest Glassnode data, the number of addresses holding at least 1,000 BTC surpassed 1,510 on Thursday, January 18. This figure represents the metric’s highest level in over 15 months (since August 2022). 

Large holders, commonly known as “whales,” are considered relevant entities in the cryptocurrency market due to their ability to influence prices and market sentiment. Hence, a notable uptick in the number of whales often suggests growing confidence in a cryptocurrency – in this case, Bitcoin.

Furthermore, this surge in whale addresses signals potential accumulation amongst large investors and institutions. Acquisition of large Bitcoin amounts is a positive sign for the market leader, especially in terms of price performance.

A recent Santiment report adds strength to this argument, saying that increased whale accumulation of Bitcoin would be a “key” factor to help trigger another bull run for the flagship cryptocurrency and the entire sector. 

As the #crypto weekend begins, shark & whale tiers for #Bitcoin & top #stablecoins remain mildly down:

10-10K #Bitcoin wallets: 66.27% of supply 100K-10M #Tether wallets: 33.98% of supply 100K-10M #USDCoin wallets: 35.49% of supply

Several events can

(Cont) pic.twitter.com/qu6SqG4Qis

— Santiment (@santimentfeed) January 20, 2024

The blockchain analytics firm also highlighted the accumulation of the Tether and USDC stablecoins as a vital signal for the cryptocurrency market’s return to its recent high.

Bitcoin Price Overview

As of this writing, the price of Bitcoin stands at $41,593, reflecting a 1.1% increase in the past 24 hours. This doesn’t fully tell the story of the coin’s performance in the past day, though, as it briefly fell below $41,000.

According to data from CoinGecko, BTC is down by more than 5% in the last 14 days. The cryptocurrency has reversed all its gains and more from the recent launch of spot exchange-traded funds in the United States.

Nevertheless, Bitcoin maintains its spot as the largest cryptocurrency in the sector, with a market cap of over $814 billion.

Data from the trading analytics platform BitMEX Research reveals that Fidelity’s Bitcoin spot ETF – FBTC – has now witnessed a total inflow of over $1 billion. This development comes as BTC attempts to rebound from its recent dip over the last two weeks with a 1.56% gain in the past day, based on data from CoinMarketCap.  

Fidelity Joins BlackRock On Exclusive $1-B List, As Grayscale’s ETF Continues To Bleed

Following the official launch of Bitcoin spot ETF trading on January 11, Fidelity has now become the second asset manager, with its BTC spot ETF recording an accumulative inflow of $1 billion. According to BitMEX Research, Fidelity’s FBTC experienced an inflow of $177.9 million on January 18, bringing its total inflows to $1.1 billion within five days of trading. 

FBTC now sits at the same table as BlackRock’s IBIT, whose total inflows are valued at $1.2 billion. Together, both investment funds by Fidelity and BlackRock now account for over 67% of the $3.4 billion inflows recorded in the Bitcoin spot ETF market so far. 

Other Bitcoin spot ETFs with a notable positive performance include Bitwise’s BITB, Ark Invest’s ARKB, and Invesco’s BTCO, which have posted individual total inflows of $395.5 million, $320.9 million, and $194.8 million, respectively. 

Bitcoin Spot ETF Flow data – Day 5

Data out for all providers

Net outflow of $131.6m on day 5 for all spot ETFs, large $579.6m GBTC outflow pic.twitter.com/McHZrRghtu

— BitMEX Research (@BitMEXResearch) January 19, 2024

On the other hand, Grayscale’s GBTC continues to experience outflows on a massive scale. 

BitMEX Research reveals that GBTC recorded an outflow of $579.6 million on January 18, leading the Bitcoin spot ETF market to witness a net outflow of $131.6 million. This represented the second day the BTC spot ETF market recorded a net outflow since its launch. 

GBTC’s total outflows are now valued at $2.1 billion, resulting in Bitcoin spot ETFs having a cumulative net inflow of only $1.3 billion despite the $1 billion status of BlackRock and Fidelity’s ETFs.

Bitcoin’s Price Overview

Against popular predictions, Bitcoin has witnessed a price decline in the last two weeks following the approval of the much-anticipated BTC spot ETF on January 10. Many analysts have attributed this unexpected development to the massive selling pressure generated by GBTC’s outflows. 

At the time of writing, Bitcoin trades at $41,536, with a decline of 2.55% and 5.50% in the last seven and 14 days, respectively. As earlier stated, the premier cryptocurrency has garnered some gains of 1.56% in the last day, which may be indicative of a recovery, however, it is too early to call.

According to a recent report by Messari, smart contract platform Algorand (ALGO), showcased notable growth and outperformed the general crypto market during the fourth quarter of 2023.

Algorand Outperforms Crypto Market Growth 

Per the report, Algorand experienced a surge in market capitalization during Q4 2023, with a significant growth rate of 123%. This substantial increase can be attributed to the overall positive momentum of the crypto market, which witnessed a 53% growth in market capitalization during the same period. 

Transactions on the Algorand network also saw a significant uptick, increasing by 58% quarter-on-quarter (QoQ). Consequently, fee revenue rose by 60%, reaching its highest level in a year when measured in ALGO terms, while revenue in USD terms surged by an impressive 143%.

According to Messari, Algorand’s success can be attributed to its “thriving” ecosystem, which saw the launch of multiple innovative applications in Q4 2023. These applications covered diverse areas such as regulated and programmable euro, tokenized farmland, and a developer marketplace for selling code snippets. 

The introduction of these applications further solidified Algorand’s position as a “dynamic and versatile” platform, attracting users from various domains, according to the report. 

Moreover, Algorand witnessed a substantial increase in user adoption during Q4 2023, with the addition of 1.9 million new addresses, representing a 72% QoQ growth. 

The platform also experienced a surge in transaction volume, with transactions surpassing 5.5 million towards the end of the quarter, marking the highest number recorded in the past year. Notably, ALGO transactions increased by 43% QoQ. 

Messari further suggests that the rise in transactions can be attributed to the popularity of sticky applications like Lofty.ai, which boasted over 7,000 monthly active users, and TravelX, which issued over 2 million NFT plane tickets, with over 1 million issued in Q4 alone.

Decrease In Staked ALGO

Despite growth in key metrics, the report highlighted a decline in the amount of staked ALGO during Q4, with a 49% year-on-year (YoY) decrease. Messari attributed this decline to the reduction in rewards per governance period. 

The diminishing rewards indicate a preference among users to utilize the native asset for transactions rather than committing it to governance. This is further supported by the notable 58% QoQ increase in transactions on the Algorand network.

Similarly, Algorand’s stablecoin market cap experienced a steady decline throughout the year, with a QoQ decrease of 43% and a YoY decrease of 74%. 

Notably, Tether’s USDT stablecoin experienced a more severe fall on Algorand, with over $100 million withdrawn in Q3. However, Quantoz launched EURD on Algorand, issuing over 1 million euro-backed tokens in Q4, contributing to 1.4% of the stablecoin market cap on the platform.

Despite previous declines, Algorand’s decentralized finance (DeFi) total value locked (TVL) witnessed a significant growth of 109% in Q4 2023. 

The platform’s DeFi ecosystem rebounded from a recent downturn, reaching its second-highest level in the past year, with a 12% YoY increase. Notably, Folks Finance experienced substantial growth, doubling its market share value from 55% to 58%, while Pact and Tinyman accounted for approximately 14% of each of the DeFi TVL market share in Q4.

As of the latest update, the ALGO token is currently trading at $0.1753. It has experienced significant declines across various time frames, with notable decreases of 8.7%, 12.4%, and 18.5% in the past fourteen days, thirty days, and one year, respectively. 

Featured image from Shutterstock, chart from TradingView.com

Franklin Templeton President and CEO Jenny Johnson joined CNBC’s ‘Squawk Box’ to discuss the firm’s spot Bitcoin Exchange-Traded Fund (ETF) offering in the US. In this interview, Johnson shared the reasons for investing in Bitcoin.

What Made Franklin Templeton CEO A Bitcoin Believer

As she states in the interview, the CEO is known for saying that “Bitcoin is the greatest distraction from one of the greatest disruptions in financial services,” which has led many people to believe that she doesn’t support or believe in the crypto asset.

Contrary to this belief, she points out that the Franklin Bitcoin ETF (EZBC) launch shows the asset manager company’s belief in BTC and blockchain technology.

Johnson cites the security that Bitcoin provides as one of the reasons that made her a “believer.” Holding and managing your private keys, which she states doing at one point, gives the asset what she labels an “insurance or safety component.”

This component makes crypto investors trust Bitcoin more since there’s a “fear component” linked to traditional assets, as she explains:

One of the things that made me a believer is: as I went around the world talking to people who would tell you ‘I keep 50% of my savings in Bitcoin because if I save the wrong thing in my country, I could have my assets confiscated.’ I remember talking to somebody in Israel who said, ‘My parents and their parents had all of their assets confiscated’ and they keep a portion in Bitcoin. So, there’s a fear component to it that it’s considered almost an insurance or safety component.

The CEO also listed the importance of Bitcoin in “fueling what is the next real opportunity in this blockchain world,” another reason for her to believe in the asset.

Trust In Blockchain Technology

Regarding the reason behind the market’s demand that led to the spot Bitcoin ETF’s approval by the US Securities and Exchange Commission (SEC), the CEO thinks that there are various reasons for it, including Bitcoin’s crucial role, “from a blockchain standpoint,” in the ability to pay.

Johnson further explained that blockchain technology will “open a lot of really interesting tech investment opportunities,” as Bitcoin is “one of the suitable opportunities here.” Furthermore, the CEO recalled the asset manager’s previous use and trust in blockchain technology:

We actually launched and tokenized money market fund. We’re the first mutual fund or the first traditional asset manager to actually launch a 40-act fund on a public blockchain, on the stellar blockchain.

Lastly, when asked what can allure a traditional investor to invest in an ETF, she explains there’s a market and use case for both. But while holding your keys can be ideal for many, it may also be complicated to figure out.

ETFs can better fit some investors who want to diversify their portfolio while “being able to open it up, have access through an ETF, and simply through your account.”

XRP is currently at a critical juncture, as crypto analyst CoinsKid has pointed out. The analyst has raised concerns about the altcoin’s immediate future and emphasizes the urgent need for bullish momentum to prevent a significant downturn.

Bulls Should Step In Quick

In the post shared on X, CoinsKid stressed that if the bulls don’t step in soon, XRP could face a drastic “macro correction,” potentially plummeting its price toward the $0.38 level. This warning follows a period of declining prices for XRP, which has seen the asset struggle to maintain its value.

The analyst elaborated, “Squeaky bum time. TICK TOCK,” highlighting the urgency and the nervous anticipation surrounding XRP’s price movement in the coming days.

This sentiment reflects a broader concern among XRP investors and market observers. The lack of bullish activity in the recent period has left XRP vulnerable to further losses, raising fears that it could slide to its lowest levels in months.

The potential drop to $0.38 would represent a loss in value and mark a new phase of uncertainty for the cryptocurrency. This comes when the broader crypto market is experiencing its own challenges, with various assets facing downward pressure.

We need to see the bulls step in here for #xrp. Otherwise, we could see a bigger macro correction play out towards the 0.786 at $0.38

Squeaky bum time. TICK TOCK pic.twitter.com/jKlBsiXu6h

— CoinsKid (@Coins_Kid) January 19, 2024

XRP Price Action And Bearish Confirmation

XRP’s recent market performance has been far from reassuring for its holders. Over the past week, the asset has seen a decline of more than 10%, and so far, this bearish trend shows no signs of abating. The altcoin is trading below $0.53, a drop of nearly 5% in the past 24 hours.

This downward trajectory is further corroborated by crypto analyst Ali, who has pointed out that should XRP breach the $0.55 level, the altcoin could tumble down to as low as $0.34. Such a drop would take the altcoin to a price point not seen since April 2023, an alarming prospect for investors and the XRP community.

$XRP is currently grappling to maintain its footing at the crucial $0.55 support level. Should this support fail to hold, be prepared for a possible sell-off scenario that could see #XRP descending toward $0.34! pic.twitter.com/6oKObjpnnm

— Ali (@ali_charts) January 18, 2024

Despite this downturn, XRP’s daily trading volume has remained relatively stable, fluctuating between $1.4 billion and $1.2 billion over the past week. At the time of writing, Altcoin’s trading volume was around $1.28 billion.

Featured image from Unsplash, Chart from Tradingview

In an encouraging development for the crypto space, Tether, the issuer of the world’s largest stablecoin USDT, has doubled down on its Bitcoin investment momentum by acquiring a staggering 8,888 BTC, further diversifying its portfolio. 

Tether Increases Its Bitcoin Holdings

Tether has recently made its third largest Bitcoin purchase, as the stablecoin issuer added a total of 8,888 BTC valued at $380 million at the time of purchase. This brings its total BTC holdings to 66,465 BTC, valued at $2.81 billion with an average buy price of $42,353. 

This transaction was captured by BitInfoCharts data, which also showed the previous amounts of BTC accumulated by the blockchain-enabled platform. This recent purchase follows Tether’s Bitcoin investment strategy, in line with its vision to continuously strengthen its reserves by accumulating Bitcoin.

Earlier in May 2023, the stablecoin issuer announced in a blog post that it would regularly allocate 15% of its net realized operating profits toward increasing its BTC reserves. As of the end of March 2023, Tether held approximately $1.5 billion worth of cryptocurrency, a $1.3 billion difference from its total BTC holdings presently. 

According to reports from Dune Analytics, Tether has become the 11th largest Bitcoin holder, with Microstrategy, an American business intelligence service, surpassing Tether’s holdings with over 189,00 BTC accumulated. The other addresses in the top 10 rankings are owned by major crypto exchanges and governments, including Binance, Bitfinex and the US government. 

Tether’s decision to double down on its Bitcoin investments signals its confidence in the cryptocurrency’s future trajectory. It also underscores the blockchain platform’s belief in the long-term potential of BTC as it aims to capitalize on Bitcoin’s potential growth by bolstering and diversifying its digital asset reserve.  

BTC Accumulation Race Amidst ETF Hype

Tether’s strategic Bitcoin purchase comes at a time when the crypto market is buzzing with excitement over Spot Bitcoin ETFs. Before the approval of Spot Bitcoin ETFs, Tether had steadily increased its BTC portfolio, purchasing substantial quantities of BTC consistently. In March 2023, the stablecoin issuer bought 15,915 BTC and another 4,083 BTC between the months of May and September.

The timing of Tether’s BTC purchase suggests a proactive stance towards potentially seizing the opportunities brought forth by the Spot Bitcoin ETF market and the upcoming Bitcoin halving in April.

In addition to Tether’s large-scale BTC acquisition, Microstrategy is also another major player which has been continually increasing its BTC holdings. The business intelligence software company added a whopping 14,620 BTC to its portfolio in December 2023. At the time, the value of the purchase was about $615.7 million. 

Other companies with large BTC holdings include Galaxy Digital and Elon Musk’s Tesla, as well as space exploration company SpaceX.

Recently, cryptocurrency analytics platform Lookonchain reported activities of Bitcoin (BTC) and Ethereum (ETH) whales amid the ongoing market downturn. These whales appear to have been capitalizing on the recent decline in the crypto prices to bolster their holdings.

According to Lookonchain, amid the market dip, a newly established wallet withdrew 700 BTC, valued at roughly $29.36 million, from the Binance exchange.

These BTCs were purchased at an average price of $41,948 each.It is worth noting that, according to the analyst, such a move during a market downturn demonstrates a bullish sentiment on the future of BTC.

It seems that a whale is buying $BTC!

In the recent market drop, a new wallet withdrew 700 $BTC($29.36M) from #Binance at an average price of $41,948.https://t.co/5kE1l0mJlo pic.twitter.com/Fj1thu4C6x

— Lookonchain (@lookonchain) January 19, 2024

Ethereum Whales Joining The Fray

The narrative of strategic accumulation isn’t limited to Bitcoin. Lookonchain’s subsequent tweet highlighted similar activities in the Ethereum market.

A whale took advantage of the decreased Ethereum prices, buying 3,600 ETH, worth around $8.9 million. Lookonchain highlighted that this investor’s history of buying ETH at lower prices and selling at higher valuations has resulted in substantial profits, estimated at around $25.8 million.

After the price of $ETH dropped today, this smart whale bought 3,600 $ETH($8.9M) back at a lower price 5 hours ago.

This whale is very good at buying $ETH at low prices and selling $ETH at highs.

The profit is ~$25.8M currently!https://t.co/UzXbheftr1 pic.twitter.com/DannZzsQVk

— Lookonchain (@lookonchain) January 19, 2024

These whale movements are worth noting, especially considering the increasing bearish sentiment in the cryptocurrency markets. Ethereum, for instance, has seen a 1.9% decline in the past 24 hours and a 7.8% drop over the past week.

The asset is currently trading at around $2,475. Bitcoin is experiencing a similar trend, with a nearly 3% decrease in the past 24 hours and a 10% fall over the past week, bringing its price to $40,819 at the time of writing.

This market downturn is also reflected in the asset’s trading volume. Bitcoin’s daily trading volume fell from over $40 billion last Friday to about $26 billion.

Bitcoin Market Analysis And Future Predictions

In light of these developments, renowned crypto analyst Jacob Canfield has cautioned that Bitcoin might face further corrections in the short term.

Canfield notes that the upcoming Bitcoin halving could play a crucial role in rebalancing the market dynamics, potentially tipping the scale towards demand over supply. However, his analysis of Bitcoin’s 4-hour chart indicates the formation of a trend that has historically been an indicator of negative short to mid-term price movements.

For Bitcoin, critical levels include $48,700, marked by the 61.8% Fibonacci retracement, weekly resistance, and a significant support level to watch at $38,700. Earlier this month, Bitcoin traded at the $48,700 zone before retracing.

Canfield warns that following a tap of the 61.8% level, Bitcoin often experiences an 18-22% sell-off, potentially bringing it back to the $38,700 support level.

#Bitcoin update – If you’ve been following me for a while, you’ll know my local top on $BTC was $48.7k (as per my playbook posts)

The question that everyone is asking now is ‘where do we go from here?’

The current narrative is that the ETF approval unlocked the GBTC investors… pic.twitter.com/MayIZp5vEY

— Jacob Canfield (@JacobCanfield) January 18, 2024

Featured image from Unsplash, Chart from TradingView