A crypto trading veteran is expecting bullish continuation for two altcoins with the Bitcoin (BTC) ecosystem as the digital asset markets flash more strength. Pseudonymous trader The Flow Horse tells his 188,000 followers on the social media platform X that he’s building a position in Stacks (STX). Stacks is a project that aims to enable […]
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A widely followed crypto trader is taking a deep dive into the exploding altcoin markets, starting with Dogecoin (DOGE). Pseudonymous crypto analyst Rekt Capital tells his 364,700 followers on the social media platform X that DOGE’s weekly close will be the most important signal of what’s to come. “That ‘buy-the-dip’ behavior we saw yesterday is looking like […]
The post Crypto Trader Updates Dogecoin and Solana Outlook, Sees ‘Moment of Truth’ for Bitcoin Layer-2 Project appeared first on The Daily Hodl.
Bitcoin’s strong rally to $30,000 may have kick started a sharp recovery in SOL, LINK, AAVE and STX.
Bitcoin (BTC) had a good week with prices rising about 10% to reach the psychologically important level of $30,000. After the rally, the question troubling investors is whether the uptrend will continue or is time for a reversal to happen.
Trading team Stockmoney Lizards recently said that Bitcoin may soon break above its overhead resistance and start a sharp rally. They believe the approval for the exchange-traded fund will drive mass adoption and trigger the rally before the halving due in April 2024.
A positive development this week was that Bitcoin’s strength rubbed off to several altcoins, which surged above their respective overhead resistance levels. This suggests that the sentiment is gradually turning positive and that it may be time to consider buying selectively.
Typically, the coins that lead the markets higher are the ones that tend to do well. Laggards are generally the last to perform, hence could be avoided initially.
Let’s look at the charts of the top-5 cryptocurrencies that may outperform in the near term.
Bitcoin is witnessing a tough battle between the bulls and the bears near the $30,000 mark, but a positive sign is that the buyers have not given up much ground.
A consolidation near the current level suggests that the bulls are in no hurry to book profits as they anticipate another leg higher. That could catapult the price to the overhead resistance zone between $31,000 and $32,400.
Contrarily, if the price turns down from $31,000, the BTC/USDT pair could drop to the 20-day exponential moving average ($28,160). If the price snaps back from this level, the bulls will again try to clear the overhead hurdle.
The positive sentiment will be negated on a break below the 20-day EMA. That could keep the pair stuck inside the $31,000 to $24,800 range for some more time.
The pair is in an uptrend as seen on the 4-hour chart. Normally, during an ascent, traders buy the dip to the 20-EMA. If that happens, it will signal that the sentiment remains bullish and every minor dip is being purchased. The pair may then continue its journey toward $32,400.
Conversely, if the price skids below the 20-EMA, it will indicate that the traders may be closing their positions in a hurry. That could open the gates for a further decline to the important support at $28,143.
Solana (SOL) broke out of the neckline on Oct. 19, completing a bullish inverse head and shoulders pattern. This setup has a target objective of $32.81.
The overbought levels on the relative strength index (RSI) suggest that a correction is possible. The important support to watch on the downside is $27.12. A strong bounce off this level will indicate that the bulls have flipped the level into support. That will improve the prospects of the continuation of the uptrend. Above $32.81, the rally could hit $39.
Time is running out for the bears. If they want to halt the up-move, they will have to drag the price back below $27.12. The SOL/USDT pair may then tumble to the neckline. This remains the key level to keep an eye on because a drop below it will suggest that the break above $27.12 may have been a fake-out.
The 4-hour chart shows that the bulls are facing stiff resistance near $30. This may start a pullback which could reach the breakout level of $27.12. Buyers are expected to defend this level with vigor. A solid bounce off this level may suggest the resumption of the up-move.
On the contrary, if the price turns down and breaks below $27.12, it will signal that the bears are aggressively selling at higher levels. The pair may then dive to the neckline near $24.50. This level may again witness strong buying by the bulls.
Chainlink (LINK) has been trading inside a tight range between $5.50 and $9.50 since May 2022 indicating a balance between supply and demand.
The bulls tried to resolve the uncertainty to the upside with a break above the range on Oct. 22 but the long wick on the candlestick shows that the bears are not willing to relent. If the bulls do not give up much ground from the current levels, it will enhance the prospects of a rally above $9.50.
The LINK/USDT pair could then start a move toward the pattern target of $13.50. Typically, a breakout from a long consolidation results in a sharp rally. In this case, the uptrend may stretch to $15 and thereafter to $18.
The first support on the downside is at $8.50. If bears tug the price below this level, it will suggest that the range-bound action may continue for a while longer.
The pair witnessed a sharp rally from $7.50, which propelled the RSI deep into the overbought territory on the 4-hour chart. This suggests that the rally is overextended in the near term and could result in a pullback or consolidation.
The solid support on the downside is $8.75 and then $8.50. A strong bounce off this zone will suggest that the sentiment remains positive and traders are buying on dips. That will increase the possibility of a retest of $9.75.
On the contrary, a break below the 20-EMA will indicate that the bears are back in the game. The pair may then sump to $7.
Related: Lightning Network faces criticism from pro-XRP lawyer John Deaton
Aave (AAVE) rose above the downtrend line on Oct. 21, invalidating the bearish descending triangle setup. Generally, the failure of a negative setup starts a bullish move.
Both moving averages have started to turn up and the RSI is in the overbought territory, indicating that bulls are at an advantage. If the price maintains above the downtrend line, the AAVE/USDT pair may first surge to $88 and then to $95.
If bears want to prevent this up-move, they will have to quickly pull the price back below the downtrend line. That may catch a few aggressive bulls on the wrong foot and start a correction to the moving averages. A slide below the 50-day simple moving average ($62) will put the bears back in the driver’s seat.
The 4-hour chart shows that the bears tried to stall the relief rally at the downtrend line but the bulls did not give up much ground. The momentum picked up and the pair is on its way higher toward $88.
A minor concern in the short term is that the RSI soared into the overbought territory indicating that a consolidation or correction is possible. On the way down, the first support is at $72. The bears will have to yank the price below the downtrend line to trap the bulls.
Stacks (STX) rose sharply in the past few days, indicating that the bulls are trying to start a new uptrend.
The bullish crossover on the moving averages suggests that the bulls have an edge. In the short term, the overbought levels on the RSI indicate that a minor correction or consolidation is possible. The first support on the downside is the 20-day EMA ($0.54).
If the price rebounds off this level, it will signal a change in sentiment from selling on rallies to buying on dips. That will increase the likelihood of the continuation of the up-move. The STX/USDT pair could first rise to $0.80 and subsequently to $0.90.
This positive view will be invalidated in the near term if the price turns down and plummets below the 20-day EMA.
The price has been consolidating in a tight range between $0.61 and $0.65 as seen on the 4-hour chart. This is a positive sign as it shows the bulls are not rushing to the exit as they anticipate another leg higher. If buyers drive the price above $0.65, the pair will attempt a rally to $0.68 and then to $0.75.
Contrary to this assumption, if the price turns down and breaks below the 20-EMA, it will signal profit-booking by short-term traders. The pair may then plunge to the 50-SMA.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Bitcoin and Ether’s recovery has improved traders' sentiment, which could trigger buying in ARB, VET, and STX.
Bitcoin (BTC) made a new 52-week high on June 23, indicating that bulls are on fire. Buyers have managed to hold onto a large part of the gains made during the week, signaling that they are in no hurry to book profits. Bitcoin climbed 16% this week, outperforming the S&P 500 Index, which fell 1.39%.
Not only Bitcoin but even Ether (ETH) is showing signs of starting a bullish move. Glassnode data shows that Ether balances on exchanges dropped sharply in the past 30 days and hit a new low of 12.6%.
A similar dip in Ether exchange balances happened in November 2022, which was followed by a sharp rally of 33%. Although a rally is possible, traders need to be cautious because the fall in exchange balances this time may have been triggered by the U.S. Securities and Exchange Commission’s actions against Binance and Coinbase.
The crypto recovery is not limited to Bitcoin and Ether. Several altcoins have risen sharply from their respective lows, indicating solid buying at lower levels. This implies that the bearish sentiment may be waning.
Could the return of the buyers start a new bull move in cryptocurrencies, or will higher levels attract selling by the bears? Let’s study the charts of the top-five cryptocurrencies that may rise in the short term.
Bitcoin has been trading near the $31,000 level for the past four days. This suggests that the bears are protecting this level, but the bulls have not given up. Usually, a tight consolidation near a major resistance level tends to resolve to the upside.
The upsloping 20-day exponential moving average ($28,085) and the RSI in the overbought area indicate advantage to the bulls. If buyers kick and sustain the price above $31,000, the BTC/USDT pair could start the next leg of the up-move. There is a resistance at $32,400, but that is likely to be crossed. The pair may then skyrocket toward $40,000.
The first sign of weakness will be a break and close below $29,500. If that happens, the pair may slide to the 20-day EMA. This remains the key level to keep an eye on because if it gives way, the pair may drop to the 50-day simple moving average ($27,199).
The pair is stuck between the 20-day EMA and $31,000, but this tight-range trading is unlikely to continue for long. A range break above the $31,000-to-$31,500 zone could start the next leg of the uptrend.
Conversely, if the price dips and sustains below the 20-day EMA, it may trigger the stops of the short-term traders. The pair could then descend to $29,500, where the bulls are expected to mount a strong defense. A break below this level could open the doors for a potential fall to the 50-day SMA.
Ether has been facing selling at the $1,928 level for the past three days, but the bulls are not willing to cede ground to the bears. This indicates that buyers expect the resistance to be broken.
The moving averages are on the verge of a bullish crossover and the RSI is in positive territory, indicating that the bulls are in command. If buyers overcome the barrier at $1,928, the ETH/USDT pair may surge to the overhead zone between $2,148 and $2,200.
If bears want to prevent the rally, they will have to quickly drag the price below the moving averages. That may hit the stops of the aggressive bulls, resulting in a correction to the strong support at $1,700.
The four-hour chart shows that the price is stuck inside the range between $1,936 and $1,861. The rising moving averages and the RSI in the positive zone suggest that the path of least resistance is to the upside. If buyers propel the price above the range, the pair could start its march to the psychological level of $2,000.
Instead, if the price turns down and breaks below the $1,861 support, it will tilt the short-term advantage in favor of the bears. The pair may then tumble to the 50-SMA and later to $1,750.
Arbitrum (ARB) rose above the breakdown level of $1 on June 19 and followed that up with a sharp rally on June 20. This indicates rejection of the recent breakdown.
The bears are trying to stall the recovery at the 50-day SMA ($1.12), but a positive sign is that the bulls have successfully defended the 20-day EMA ($1.07). This narrow-range trading is unlikely to continue for long, and a breakout may be expected soon.
A break and close above $1.18 could suggest the start of a new up-move. The ARB/USDT pair could first rise to $1.28 and, subsequently, to $1.54. This bullish view will be negated if the price turns down and plunges below the $1-to-$0.90 support zone.
The four-hour chart shows that the bulls are struggling to overcome the obstacle at $1.18. This indicates that bears are active at higher levels. Sellers pulled the price below the 20-day EMA, but they could not crack the 50-day SMA.
The 20-day EMA is flattening out and the RSI is near the midpoint, indicating a balance between buyers and sellers. If bulls drive the price above $1.18, it will indicate the start of a strong recovery. Contrarily, a break and close below the 50-day SMA may result in a slump to $1.
Related: Bitcoin sees new all-time highs in 3 countries as BTC price pokes $31K
VeChain (VET) turned down from the resistance line on June 23, but the bears are struggling to sustain the price below the 50-day SMA ($0.018). This suggests that traders are buying the dips.
The bulls will once again try to propel the price above the resistance line. If they succeed, it will indicate that the downtrend has ended. The VET/USDT pair could then start its upward move toward $0.026.
Contrary to this assumption, if the price once again turns down from the resistance line, it will suggest that the bears remain in control. They will then try to sink the pair below the moving averages and challenge the support at $0.013.
The four-hour chart shows that the price reversed direction from the resistance line but is finding support at the 20-day EMA. This suggests that the sentiment is turning positive and traders are viewing the dips as a buying opportunity.
The bulls will again attempt to propel the price above the resistance line. If they manage to do that, the pair could climb to $0.021. This level may again act as a hurdle but if crossed, the up-move may begin. The first support on the downside is the 20-day EMA, and next is the 50-day SMA.
Stacks (STX) soared above the moving averages on June 20, signaling a potential trend change. The corrective phase started on June 22, but a positive sign is that the price remains above the moving averages.
The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating that bulls have the upper hand. If the price turns up from the current level or rebounds off the 20-day EMA ($0.65), it will suggest buying on dips. That will enhance the prospects of a break above $0.89.
If that happens, the STX/USDT pair could rally to $1.10 and, thereafter, to $1.30. This positive view will be invalidated if the price turns lower and plummets below the moving averages. Such a move will suggest that the bears have not yet given up and will continue to sell on rallies.
The four-hour chart shows that the pair is in a corrective phase. The bears pulled the price below the 20-day EMA, but the bulls are defending the 50% Fibonacci retracement level of $0.71. Buyers will have to drive the price above the downtrend line to open the doors for a possible rally to $0.88.
Alternatively, if the price turns down from the downtrend line, it will suggest that bears are trying to gain the upper hand. A break and close below the 61.8% retracement level of $0.67 could indicate that the bears are back in the game.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
A Bitcoin (BTC)-focused crypto asset has drafted off BTC’s price pump and surged by more than 44% in the past seven days. Stacks (STX) is a layer-1 blockchain that aims to boost the utility of Bitcoin by enabling smart contracts, decentralized finance (DeFi) activity, non-fungible tokens (NFTs) and other applications to be built on the […]
The post Crypto Asset Built To Boost Bitcoin Utility Surges 44% in Just One Week appeared first on The Daily Hodl.
Bitcoin NFT inscription activity continues to rise and the launch of new BTC specific marketplaces could lay the groundwork for the next hype cycle.
Bitcoin NFT inscription activity has remained strong with consistency in the daily number of NFTs inscribed on Bitcoin. At the same time, the infrastructure to foster Bitcoin trading is finally coming together with the development of wallets and marketplaces supporting Ordinals.
NFT marketplaces, Gamma and Magic Eden, added support for Bitcoin NFTs this week. While the initial response of traders has been subdued, the activity is expected to pick up soon.
Bitcoin NFTs, also-known-as Ordinals, began with much fanfare in late January as they enhanced the utility and revenue of the Bitcoin blockchain.
Dune dashboard from data analyst dgtl_assets shows that the Ordinals inscription activity remains robust, with nearly 580,000 NFTs inscribed in less than three months.
While the daily inscription activity is vigorous, the trading volume of Bitcoin NFTs is still muted, which can be primarily attributed to the absence of Bitcoin wallets and supporting marketplaces.
Ordinals require a specially designed Bitcoin wallet that recognizes content files on discernable satoshis, the smallest unit of Bitcoin, and facilitates its transfer. Hiro and Xverse are the leading wallet providers in the space.
Mark Hendrickson, the product lead at Hiro, told Cointelegraph that the “active users for the wallet are up significantly in general this year, around 350%.” The activity picked up significantly since February, thanks to the Ordinals hype.
On the other hand, Xverse added Bitcoin NFT support on February 15.
So far, the Xverse Chrome browser extension has been downloaded on over 10,000 browsers, with Hiro’s download numbers surpassing 90,000. The Hiro wallet enjoys an advantage here as it was initially designed for the Stacks blockchain, a Bitcoin sidechain that supports smart contract ability.
Since March 19, there has been considerable improvement in the space, with two leading marketplaces, Gamma and Magic Eden, beginning to support Ordinals trading on March 20 and March 22. So far, the marketplaces have met with a soft opening with less than $1 million in trading volume on both venues.
In comparison, OpenSea has facilitated more than $10 million in daily trading volume on Ethereum NFT trades alone on most days in the first quarter of 2023.
Gamma users have completed around 182 Bitcoin NFT purchases since launch. Whereas Magic Eden has done close to 18.94 BTC (worth around $530,000) volume since launch, with the Bitcoin DeGods collection dominating volumes by 67%.
Related: Stacks (STX) surges as Bitcoin NFT hype grows, but its blockchain activity raises concern
Additionally, Hendrickson noted that Magic Eden enjoys an advantage in "the cross-protocol department given that they've previously rolled out support for Solana, Ethereum and Polygon. This could help serve cross-chain trading needs faster, especially as demand increases for moving liquidity across chains to access their various NFT markets.”
At the same time, he noted that “Gamma has an advantage among Ordinals marketplaces given their deep focus on Bitcoin-based technologies.” Data provided by Hendrickson shows that the number of Hiro users interacting with Gamma surged significantly to around 2,144 weekly users as the hype around Bitcoin NFTs kicked off.
The Bitcoin NFT trading activity is expected to pick up. Ordinals provide superior security guarantees than NFT ecosystems elsewhere. The digital media file of Ordinals is stored directly on the Bitcoin blockchain and enjoys the same security guarantees as regular BTC transfers. Whereas other ecosystems like Ethereum store the content file of the NFT on third-party storage solutions like AWS and IFPS. Hendrickson noted, “Their long-term durability is a huge advantage.”
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Bitcoin, ETH, BNB, STX, and IMX remain strong on the charts, increasing the likelihood of more gains in the near term.
Bitcoin (BTC) is on track to close the week with gains of more than 23%. The banking crisis in the United States and Europe seems to have boosted buying in Bitcoin, indicating that the leading cryptocurrency is behaving as a safe haven asset in the near term.
All eyes are on the Federal Reserve’s meeting on March 21 and 22. The failure of the banks in the U.S. has increased hopes that the Fed will not hike rates in the meeting. The CME FedWatch Tool shows a 38% probability of a pause and a 62% probability of a 25 basis points rate hike on March 22.
Analysts are divided on the consequences of the current crisis on the economy. Former Coinbase chief technology officer Balaji Srinivasan believes that the U.S. will enter a period of hyperinflation while pseudonymous Twitter user James Medlock believes otherwise. Srinivasan plans to wage a millionaire bet with Medlock and another person that Bitcoin’s price will reach $1 million by June 17.
Although anything is possible in crypto markets, traders should be prudent in their trading and not get carried away with lofty targets.
Let’s study the charts of Bitcoin and altcoins that are showing signs of the resumption of the up-move after a minor correction.
Bitcoin soared above the $25,250 resistance on March 17, completing a bullish inverse head and shoulders (H&S) pattern.
Usually, a breakout from a major setup returns to retest the breakout level but in some cases, the rally continues unabated.
The rising 20-day exponential moving average ($24,088) and the relative strength index (RSI) in the overbought territory indicate advantage to buyers. If the price breaks above $28,000, the rally could pick up momentum and surge to $30,000 and thereafter to $32,000. This level is likely to witness strong selling by the bears.
Another possibility is that the price turns down from the current level but rebounds off $25,250. That will also keep the bullish trend intact.
The positive view will be invalidated in the near term if the price plummets below the moving averages. Such a move will suggest that the break above $25,250 may have been a bull trap. That could open the doors for a possible drop to the psychologically critical level of $20,000.
The 4-hour chart shows that the BTC/USDT pair is facing profit-booking near $27,750 but a positive sign is that the pullback has been shallow. Buyers will try to drive the price above $28,000 and resume the uptrend. The pair could then climb toward $30,000.
On the other hand, if the price turns down and slumps below the 20-EMA, it will suggest that the traders are rushing to the exit. That may pull the price down to the important support at $25,250 where the bulls and the bears may witness a tough battle.
The bulls conquered the $1,800 resistance on March 18 but could not sustain the higher levels. This shows that the bears are protecting the $1,800 level on Ether (ETH) with vigor.
The critical support to watch on the downside is the zone between $1,680 and the 20-day EMA ($1,646). If the price rebounds off this zone, it will signal that the sentiment has turned positive and traders are buying on dips.
Buyers will then again try to resume the uptrend and drive the price toward the next target objective at $2,000. This level may prove to be a major hurdle for the bulls to cross.
Contrarily, if the price turns down and slumps below the moving averages, it will suggest that the bulls are losing their grip. The ETH/USDT pair may then drop to $1,461.
The 4-hour chart shows that the pair bounced off the support at $1,743. This suggests that the bulls are buying the shallow dips and are not waiting for a deeper correction to get in. Buyers will next try to kick the price above $1,841. If this level is taken out, the pair may sprint toward $2,000.
Contrarily, if the price turns down and plunges below $1,743, short-term traders may book profits. The pair could then slide to the next important support at $1,680.
BNB (BNB) rose above $338 on March 18, which invalidated the bearish H&S pattern. Usually, when a bearish pattern fails, it attracts buying from the bulls and short covering by the bears.
The onus is on the bulls to keep the price above the immediate support at $318. If they manage to do that, the BNB/USDT pair could first climb to $360 and thereafter dash toward $400. The upsloping 20-day EMA ($309) and the RSI near the overbought territory indicate that the path of least resistance is to the upside.
If bears want to gain the upper hand, they will have to yank the price back below the moving averages. This may not be an easy task but if completed successfully, the pair could tumble to $280.
The 4-hour chart shows that the bulls are buying the dips to the 20-EMA. The bears tried to halt the recovery at $338 but the bulls have pierced this resistance. Buyers will try to push the pair to $346. If this level gives way, the pair may continue its uptrend.
Alternatively, if the price turns down and breaks below 20-EMA, it will suggest that the short-term bulls may be booking profits on rallies. The pair could then slump to $318 where the buyers may step in to arrest the decline.
Related: Peter Schiff blames ‘too much gov’t regulation’ for worsening financial crisis
Stacks (STX) rallied from $0.52 on March 10 to $1.29 on March 18, a sharp run within a short time. This suggests aggressive buying by the bulls.
The STX/USDT pair is witnessing profit-booking near $1.29 but a positive sign is that the bulls have not ceded much ground to the bears. This suggests that minor dips are being bought. Typically, in a strong uptrend, corrections last for one to three days.
If the price turns up and breaks above $1.29, the pair could resume its uptrend. The next stop on the upside is likely to be $1.55 and then $1.80.
The first sign of weakness on the downside will be a break and close below $1. That could clear the path for a drop to the 20-day EMA ($0.84).
The pair has corrected to the 20-EMA. This is an important level for the bulls to defend if they want to resume the up-move. If the price rebounds off the 20-EMA, the pair could retest the overhead resistance at $1.29. If bulls overcome this barrier, the next leg of the uptrend may begin.
Conversely, if bears sink the price below the 20-EMA, the pair could slide to $1 and then to the 50-simple moving average. A deeper correction may delay the resumption of the up-move and keep the pair stuck inside a range for a few days.
Immutable (IMX) skyrocketed above the overhead resistance of $1.30 on March 17, which completed the inverse H&S formation. This suggests the start of a potential new uptrend.
Meanwhile, the price may retest the breakout level of $1.30. If the price rebounds off this level with strength, it will suggest that the bulls have flipped the level into support. Buyers will then try to kick the price above $1.59 and resume the uptrend. The IMX/USDT pair may then rally to $1.85 and later to $2. The pattern target of the reversal setup is $2.23.
This positive view could be negated in the near term if the price slips below the moving averages. Such a move will suggest that the break above $1.30 may have been a bull trap. The pair could then drop to $0.80.
The pair is witnessing a mild correction, which is finding support at the 20-EMA. Buyers are trying to clear the overhead hurdles at $1.59 but the bears are not relenting. If the price breaks below the 20-EMA, the pullback could reach $1.30.
Another possibility is that the price rebounds off the 20-EMA. That will indicate solid demand at lower levels and enhance the prospects of a break above $1.59. If that happens, the pair may resume its uptrend.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Bitcoin's performance has outpaced Warren Buffett's Berkshire Hathaway over the past six months as crypto markets appear to have turned a corner.
The total crypto market capitalization increased by 26% in seven days, reaching $1.16 trillion on March 17. Bitcoin (BTC) was the biggest winner among the top 20 coins, up 31.5%, though some altcoins gained 50% or more during that period.
The surge in cryptocurrency prices occurred as the United States Federal Reserve was forced to lend banks $300 billion in emergency funds. According to PBS News Hour, nearly half of the money went to failed financial institutions Silicon Valley Bank and Signature Bank and was used to pay uninsured depositors. The remaining $153 billion was obtained through a long-standing program known as the "discount window," which allows banks to borrow funds for up to 90 days.
While appearing to protect the banking sector, additional funding for the Federal Deposit Insurance Corporation (FDIC) and credit facilitation using Fed resources ultimately creates a "false sense of confidence," according to activist billionaire investor Bill Ackman.
The $30 billion plan devised by U.S. regulators to avoid a major liquidity crisis in First Republic Bank (FRB) "raised more questions than it answers," said Ackman, who manages the hedge fund Pershing Square. Furthermore, Ackman stated that "half measures don't work when there is a confidence crisis."
As the banking crisis worsened, Warren Buffett, the largest shareholder and co-founder of Berkshire Hathaway (BRKB), a $650 billion financial conglomerate, saw his holdings rapidly deteriorate. Berkshire Hathaway, for example, is the largest holder of Bank of America (BAC) stock, which has fallen 15.5% year-to-date. This position alone has cost Buffett's investment vehicle $5.2 billion.
Buffett, a well-known cryptocurrency critic, has stated that he has no interest in Bitcoin, even if the entire float is offered at $1,300. The 91-year-old, with a net worth of around $102 billion, claimed that Bitcoin doesn't produce anything, whereas farmland and residential real estate do.
However, Bitcoin's price increased by 31.5% in the six months preceding March 17, while Berkshire's stock increased by 5.8%. So, for the time being, the so-called "rat poison," as Buffett once described Bitcoin, is outpacing his own financial management firm.
Let's look at the performance of the top 80 cryptocurrencies by market capitalization to see if the surge above the $1 trillion mark has boosted the confidence of altcoin investors.
Conflux Network (CFX) gained 97.6% after KuCoin Ventures announced a $10 million investment in stablecoin issuer and blockchain-based payment service provider CNHC, which is available on Ethereum and Conflux networks.
Stacks (STX) rallied 75.7% as the network is scheduled to undergo an upgrade on March 20, introducing Stacks 2.1 with new features and improvements.
Immutable X (IMX) rose 71.7% following a much-anticipated partnership announcement scheduled for March 20.
Traders can gauge the market's sentiment by measuring whether more activity is going through call (buy) options or put (sell) options. Generally speaking, call options are used for bullish strategies, whereas put options are for bearish ones.
A put-to-call ratio of 0.70 indicates that put option open interest lags behind the more call options. In contrast, a 1.40 indicator favors put options, which is a bearish sign.
Related: Crypto Biz — SVB collapses, USDC depegs, Bitcoin still up
Since March 12, the demand for neutral-to-bullish call options has increased, indicating the growing risk appetite of derivatives traders. The movement peaked on March 17, when the volume of call options exceeded the volume of protective put options by a three-to-one ratio.
The gap favoring call options has stabilized at two-to-one, indicating that professional investors are unconcerned following the March 17 rejection of the $1.16 trillion market capitalization level. In the end, data indicate a strong conviction for Bitcoin's support at $26,000, so bulls are in a stronger position to continue their rally.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
BTC price is attempting to stage a recovery, while EOS, STX, IMX and MKR are beginning to flash bullish signals.
The United States equities markets made a strong recovery this week but Bitcoin (BTC) failed to follow suit. This means that cryptocurrency investors stayed away and could be worried by the ongoing problems at Silvergate bank. These fears could be what is behind the total crypto market capitalization dropping to nearly $1 trillion.
The behavior analytics platform Santiment said in a report on March 5 that there was a “huge spike of bearish sentiment” according to their bullish versus bearish word comparison Social Trends chart. However, the firm added that th “kind of overwhelmingly bearish sentiment can lead to a nice bounce to silence the critics.”
Another short-term positive for the crypto markets is the weakness in the U.S. dollar index (DXY), which fell by 0.70 in the past 7 days. This suggests that crypto markets may attempt a recovery over the next few days. As long as Bitcoin remains above $20,000, select altcoins may outperform the broader markets.
Let’s study the charts of Bitcoin and the four altcoins that are showing promise in the near term.
Bitcoin plummeted below the $22,800 support on March 3. Buyers tried to push the price back above the breakdown level on March 5 but the long wick on the candlestick suggests that bears are trying to flip $22,800 into resistance.
The 20-day exponential moving average ($23,159) has started to turn down and the relative strength index (RSI) is below 44, indicating that bears are trying to solidify their position. Sellers will try to sink the price below the support at $21,480. If they can pull it off, the BTC/USDT pair may retest the vital support at $20,000.
If bulls want to prevent the downside, they will have to quickly thrust the price above the 20-day EMA. Such a move will suggest aggressive buying at lower levels. The pair may then rise to $24,000 and thereafter rally to $25,250. A break above this resistance will indicate a potential trend change.
The moving averages are turning down on the 4-hour chart and the RSI is near 39. This indicates that bears have the upper hand. If the price turns down from the 20-EMA and breaks below $21,971, the pair may retest the support at $21,480.
Instead, if bulls drive the price above the 20-EMA, it will suggest that the bears may be losing their grip. The pair could then climb to the 50-simple moving average. This is an important level for the bears to defend because a break above it may open the gates for a rally to $24,000.
EOS (EOS) broke above the vital resistance of $1.26 on March 3 but the bulls could not sustain the higher levels. However, a positive sign is that the price has not dropped below the 20-day EMA ($1.17).
The gradually upsloping moving averages and the RSI in the positive zone indicate advantage to the bulls. The EOS/USDT pair has formed a rounding bottom pattern that will complete on a break and close above the $1.26 to $1.34 resistance zone. This reversal setup has a target objective at $1.74.
The important support to watch on the downside is the 50-day SMA ($1.10). Buyers have not allowed the price to tumble below this support since Jan. 8, hence a break below it may accelerate selling. The next support on the downside is $1 and then $0.93.
The bears pulled the price below the 20-EMA but a minor positive is that bulls have not allowed the pair to slide to the 50-SMA. This suggests that lower levels continue to attract buyers. If the price rises above the 20-EMA, the bulls will again try to clear the hurdle at $1.26. If they do that, the pair may surge to $1.34.
This positive view could invalidate in the near term if the price turns down and breaks below the 50-SMA. That may extend the fall to $1.11.
Stacks (STX) rallied sharply from $0.30 on Feb. 17 to $1.04 on March 1, a 246% rise within a short time. Typically, vertical rallies are followed by sharp declines and that is what happened.
The STX/USDT pair plunged to the 20-day EMA ($0.69) where it is finding buying support. The 50% Fibonacci retracement level of $0.67 is also close by, hence the bulls will try to protect the level with vigor. On the upside, the bears will try to sell the rallies in the zone between $0.83 and $0.91.
If the price turns down from this overhead zone, the sellers will again try to deepen the correction. If the $0.67 cracks, the next support is at the 61.8% retracement level of $0.58.
Contrary to this assumption, if buyers thrust the price above $0.91, the pair may rise to $1.04. A break above this level will indicate a possible resumption of the uptrend. The pair may then rally to $1.43.
The 4-hour chart shows that the 20-EMA is sloping down and the RSI is in the negative territory, indicating that bears have a slight edge. Sellers are likely to defend the moving averages during pullbacks. They will try to maintain their hold and sink the price to $0.65 and then to $0.56. The bulls will try to fiercely defend this support zone.
The first sign of strength will be a break and close above the 50-SMA. The pair may then rise to $0.94 and later to $1.04.
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ImmutableX (IMX) rebounded off the 50-day SMA ($0.88) on March 3 and closed above the 20-day EMA ($1), indicating solid demand at lower levels.
The IMX/USDT pair could rise to $1.12 where the bears will again try to stall the recovery. If buyers bulldoze their way through, the pair could accelerate toward the stiff overhead resistance at $1.30. This is a crucial level to keep an eye on because a break and close above it may signal the start of a new uptrend. The pair may then soar to $1.85.
Contrarily, if the price turns down from the current level or $1.12, it will suggest that the bears have not yet given up. Sellers will then again try to sink the pair below the 50-day SMA and gain the upper hand. If they succeed, the pair could slump to $0.63.
The 4-hour chart shows that the price is oscillating between $0.92 and $1.12. Usually, in a range, traders buy near the support and sell close to the resistance. The price action inside the range could be random and volatile.
If the price rises above the resistance, it suggests that the bulls have overpowered the bears. The pair may then rally toward $1.30. On the contrary, if bears sink the price below $0.92, the pair may turn negative in the near term. The support on the downside is at $0.83 and next at $0.73.
After a short-term pullback, Maker (MKR) is trying to resume its up-move. This suggests that the sentiment remains positive and traders are viewing the dips as a buying opportunity.
The upsloping moving averages and the RSI in the positive territory indicate that the path of least resistance is to the upside. If buyers sustain the price above $963, the MKR/USDT pair may start its journey to the $1,150 to $1,170 resistance zone.
If bears want to stall the bullish trend, they will have to pull the price below the 20-day EMA ($807). If they manage to do that, stops of several short-term traders may be hit. The pair may then decline to the 50-day SMA ($731).
The pair had been trading between $832 and $963 for some time but the bulls are trying to kick the price above the range. The 20-EMA has turned up and the RSI is in the positive territory, indicating that bulls are in command.
If the price sustains above $963, the pair may attempt a rally to the target objective of $1,094. On the other hand, if the price turns down sharply below $963, it will suggest that the breakout may have been a bull trap. That could extend the consolidation for a while longer.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
The possibility of hosting Bitcoin NFTs on Stacks pushed STX price to new yearly highs, but there are concerns on whether the bullish thesis becomes reality.
Stacks is one of the first blockchains to enable a way for minting Bitcoin (BTC) Ordinals, which puts it in an excellent position to benefit from the hype. However, Ordinals have invoked an issue from the past where Bitcoin maximalist ideologies will be tested if the NFTs lead to network congestion.
On top of that, Stacks has yet to deliver all the functionalities required to support an NFT trading ecosystem and it faces competition from projects in other blockchain ecosystems. The fundamental and technical analysis of the project suggests that the price surge might have reached overbought conditions and may correct in the near term.
The recent focus on inscribing NFTs on the Bitcoin network peaked in the last month after Casey Rodarmor inscribed an Ordinal on Jan. 29. While the trend took off to an overwhelming start, the minting is limited to technical users with a Bitcoin node and trading primarily takes place through OTC channels.
In comparison to Ethereum NFT marketplaces, the infrastructure for Bitcoin NFT trading remains significantly underdeveloped in regards to complex activities like decentralized trading. Many investors have expressed their belief that there needs to be a way to spin up marketplaces and NFT minting platforms for Ordinals.
The Bitcoin developer community has previously discouraged using the network for anything other than payments because it clogs the space and increases transaction fees. In the bull run of 2020 and 2021, many Ethereum (ETH) users paid hundreds of dollars in fees per transaction as user activity on it exploded. On the other hand, Bitcoin’s fees stayed at optimum levels throughout the bull run, but the usage and earnings of the protocol lagged behind Ethereum.
According to a CoinShare report, the adoption of Ordinals will again be subject to the social acceptance of the method to inscribe additional data on the Bitcoin blockchain, which is bound to present challenges such as network congestion and increased fees.
The report goes on to review previous failed attempts to use the Bitcoin blockchain for smart contract activity, saying that “similar projects of Bitcoin’s past have had little impact on investors and users alike.”
The number of Ordinals inscribed on Bitcoin surged significantly at the start of February as the instrument exploded. However, the trend slowed down due to a lack of trading infrastructure, with less than 10,000 NFTs inscribed on most days.
Stack blockchain’s native STX token jumped by 256% in February, thanks to hype around Bitcoin NFTs and an upcoming upgrade to the project.
It remains to be seen how the Bitcoin community reacts to an increase in network congestion and Bitcoin fees if the Ordinals hype grows.
The idea is that Stacks will make Bitcoin Ordinals more accessible to users by facilitating minting processes and hosting marketplaces.
Stacks Foundation, the team managing the blockchain, also announced a new upgrade to the protocol, Stacks 2.1, on Feb. 22, which seeks to improve the blockchain by adding EVM compatibility and synthetic Bitcoin (sBTC) through a secure bridge to Bitcoin.
On top of that, the .BTC naming service lives on the Stacks network, which could generate a lot of trading activity if the demand for .BTC addresses increases. In its current state, a .BTC Stacks address is largely detached from the Bitcoin network. Meaning, users cannot send and receive Bitcoin at these addresses like its .ETH counterpart.
After the 2.0 upgrade, Stacks will enable direct sending of Stacks assets to Bitcoin addresses. It will enable proxy access to the Bitcoin blockchain without creating a separate Stacks address. It remains to be seen if Bitcoin users find the feature attractive.
While the upgrades sound promising, there’s still insufficient blockchain activity to justify the STX price surge. Only around 1,000 unique active wallets engaged with dApps on Stacks in February. The most striking part of Stack’s usage data was that the NFT marketplace, Gamma, also failed to attract considerable users to its platform, less than 100 wallets traded daily on the marketplace.
Gamma supports minting and sending Bitcoin ordinal NFTs via Stacks. However, many users have faced UX related problems while using the feature as it requires a separate address in a Stacks wallet that is Ordinal compatible. Many users have mistakenly sent their NFTs to wrong addresses. The wallet issue has also restricted trading of Bitcoin NFTs.
Developers in the Stacks ecosystem, like the Xverse team, are working on a wallet to bring user-friendly Ordinals support. There's also an experiment with atomic swaps between Bitcoin NFTs and STX in the works. The aim is to develop this functionality into a complete marketplace.
However, other ecosystems are also looking to bank on this trend. For instance, Ordinex is developing an Ordinals trading platform, which will be accessible for Ethereum users through Metamask. Some Ethereum native projects, like OnChainBirds and SappySeals, have also inscribed the NFTs on Bitcoin and enabled trading on OpenSea. However, the trading activity of these collections remains average, with little hype.
Besides Stacks, many other ecosystems are trying to bank on the opportunity by facilitating Bitcoin NFTs. While Stacks enjoys a technical advantage over others, Ethereum has a loyal user base and adequate liquidity to outperform Stacks' ecosystem if a feasible solution emerges. Moreover, in the end, it will depend on the response and demand of these NFTs from the Bitcoin community, which may not support euphoria around it.
The STX token dilutes at the rate of 2.5% annually. The inflation will reduce after the Bitcoin halving, which is expected to occur in April 2024. The rate of supply increase of STX is low compared to other layer-1 blockchains like Solana and Cardano, which is encouraging. However, the network’s total fees or token economics do not balance the inflation, which needs to change soon.
Technically, the STX/USD pair is near the top of its two year trading range at $1.02, which is a potential yellow flag for buyers. If bulls are able to overcome this level, STX can possibly take a shot at the all-time highs near $3.00. However, given that network activity doesn’t correlate to the price rise as of yet, there’s a chance of a pullback toward $0.68 and $0.24.
Similarly, the STX/BTC pair is also near its all-time range of 0.00004350 BTC, which raises the possibility of a correction once those levels are tagged. The downside targets of STX are at 0.00002744 BTC and 0.00001233 BTC.
Bitcoin NFTs have a lot of potential, but it is still unclear if the Bitcoin community, which is usually against speculation and activities that clog the network, will allow the trend to prosper.
Currently, the most crucial aspect of NFT trading—an easily accessible marketplace and wallet—is still missing from the Ordinals ecosystem. As a Bitcoin sidechain, Stacks enjoys technical advantages with Bitcoin integration and it has a slight advantage over other blockchains in providing the tools to support an Ordinals craze.
However, the applications to support Ordinals are still in development. Meanwhile, Stacks faces competition from other more liquid ecosystems which could develop more feasible solutions to integrate Bitcoin NFTs on their chain.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
