Recent price reactions in the cryptocurrency market pointed to a likely broader rebound, fuelled by optimistic Bitcoin forecasts from JP Morgan analysts and news of another Andressen&Horotwitz fund looking for opportunities on the sector's declines. Meanwhile, Bitcoin slipped below $30,000 again amid yesterday's weakness in US indices. Will the bulls manage to sustain the rally?
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Bitcoin fell on relatively high volume and failed to stay above $32,000 indicating still active supply in key zones;
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The Binance exchange intends to take advantage of the declines and declares the creation of a $500 million fund to invest in Web3, the much-discussed evolution of the Internet;
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CEO of a fund owned by the well-known billionaire and speculator George Soros, Dawn Fitzpatrick stated that the cryptocurrency market will stay in the financial world for a long time and it is not just a short-term fad. At the same time, the fund manager indicated that Ethereum may have more interesting growth prospects ahead of it compared to Bitcoin. However, she added that the broader impact of the war in Ukraine on the markets is still huge and the risk of recession is high - especially in Europe;
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The altcoins lost the most again, including Cardano which erased some of the dynamic gains of recent days. Ethereum also failed to maintain its valuations above $2,000 and slipped again to the vicinity of $1,850. Recently, Solana also lost heavily, whose blockchain was suspended for 4 hours due to network clogging. Currently, project valuations are trying to unwind dynamic declines;
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The popular RSI indicator for Ethereum is at attractive levels for buyers, similar to those in the spring of 2020 when the crypto market was just before the bull market. This could potentially speak in favor of the bulls especially in the face of Vitalik Buterin confirmed huge Ethereum halving in August. The planned 'the merge' has a chance to reduce its supply by up to 90%, but still many investors are afraid of postponing the event again, which makes the sentiment around ETH still negative;
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The return of higher U.S. index futures could argue for a potential unwinding of cryptocurrency market declines and a return of Bitcoin above $30,000 if we do not see increasing divergence. Trading volume in the cryptocurrency sector is declining which could speak to high volatility in the event of a major price move;
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Create account Try a demo Download mobile app Download mobile appEthereum chart, D1 interval. The second largest cryptocurrency is in a very interesting position. On the one hand, the dynamic downtrend is maintained, which also increasingly actively attacks the important support at the levels of 1600-1800 USD, which historically has served repeatedly as a bullish activation zone. If this limit is broken to the bottom, it may be a strong sign of the dominance of supply. On the other hand, bullish divergence between RSI indication and price reaction can be observed. Source: xStation 5
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