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| By Marija Matic |
Bitcoin’s (BTC, “A-”) price has stagnated over the past seven days.
It's currently at the upper end of the $41,000-to-$43,000 range that it’s found itself in.
This past week’s action wasn’t unusual. Bitcoin has lingered in the same accumulation channel for the past two months. That’s despite testing breakouts in both directions in January.
Recently, increased selling by Bitcoin miners has put downward pressure on its price. Miner outflows are at a six-year high. However, the stability of Bitcoin’s price at its current levels signifies the market’s maturity and depth.
This stagnant phase shouldn’t persist for long, however. There’s growing open interest, which hints at potential upward movement.
I’m keeping close watch on Bitcoin. But I’m paying even closer attention to the second-largest cryptocurrency right now. Here’s why …
The trading action in Ethereum (ETH, “B”) may seem unremarkable on the surface. However, beneath the apparent stillness, significant developments are quietly unfolding.
Take a close look at the ETH/BTC chart and you’ll see it’s experienced sideways movement since retesting the trendline:
It is now crucial for Ethereum to initiate an upward movement so it can sustain a breakout.
That means ETH needs to surpass the $2,388 threshold to make a run for the $2,580 level.
Even in the face of potential short-term challenges, the ETH/BTC chart showcases the formation of a substantial triangle since 2017:
This triangle is anticipated to experience a breakthrough in 2024. If the breakout aligns with expectations by moving upward, it indicates that ETH will likely outperform BTC by the end of 2024.
One bullish sign is a noteworthy outflow of ETH from exchanges. Some $1.2 billion has recently been withdrawn from exchange wallets. It’s likely been moved to cold storage, or offline wallets.
This signals longer-term interest in Ethereum. Should this trend persist, it would potentially act as a supporting factor for higher prices.
Other Notable News, Notes and Xeets
- News broke this week that the once-popular, and now-defunct, crypto exchange FTX plans to repay customers in full. However, it won’t restart operations. Notably, Bitcoin has more than doubled since FTX collapsed in late 2022.
- The SEC has won its motion to compel Ripple to produce its 2022-23 financial statements and answer questions. The deadline for discovery is this coming Monday, Feb. 12.
- It was only two years ago that crypto ads were among the Super Bowl’s biggest winners. However, Super Bowl LVIII — set to take place this Sunday, Feb. 11, in Las Vegas between the Kansas City Chiefs and San Francisco 49ers — is also set to exclude crypto ads.
What’s Next
BTC and ETH currently exhibit short-term indecision.
A decisive break (and close) above the $44,000 resistance level for BTC would prompt consideration of a bullish scenario for the wider crypto market.
Meanwhile, a significant portion of the BTC supply remains tightly held. It should stay that way until we start to see higher spot prices and/or increased volatility. This would likely stimulate spending.
According to Glassnode data, Bitcoin Transfer Volumes remain exceptionally robust. Some $7.7 billion per day in economic volume gets processed.
However, there is an elevated presence of large-sized entities. This is evidenced by the average Volume per Entity soaring to $25,800 per transaction.
This trend can be largely attributed to the recently approved BTC spot ETFs.
And with spot Ethereum ETF applications already sitting at the SEC, waiting for their turn, buckle in for another bump in prices, volumes and more.
Best,
Marija Matić
P.S. Crypto ads aren’t all that’s missing from Sunday’s big game. AI ads will also be hard to come by. No wonder, really, since the biggest tech firms in America are going to great lengths to keep a secretive AI breakthrough (and potential investor goldmine) under wraps. But in a tell-all interview with an AI whistleblower this coming Tuesday, Dr. Martin Weiss will show you how investors can cash in on this landmark AI project. Sign up for this members-only event here.
