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Ethereum Recovers Above $392, Another Rally Is In The Books

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Ethereum recovers above the $392 level as it stayed above the $372 support, recovering against the US dollar. The price is now struggling to clear the $392 above which it could rally even more so let’s look at the Ethereum price news today.

The price is now trading above $382 and tests the 100 hourly simple moving average with a break above the key connecting bearish trend line with the resistance of $384 on the hourly charts of the pair. The pair has to settle above $392  to start a strong rally in the upcoming sessions. After diving towards the $372 support, ETH held the ground and even started another upward movement. The price broke the $380 resistance level to move into the short-term bullish zone. Ethereum recovers above $392 as the upward movement allowed it to surpass the 23.6% fib retracement from the downward move from the $404 swing high to the $371 swing low. There was a break above the key connecting the bearish trend line with the resistance close of $384 on the hourly charts of the pair.

eth/usd
Source ETH/USD on TradingView.com

The price faced many hurdles close to $388 to $390. The 50% fib retracement level from the downward move from $404 swing high to $371 swing low which acts as a resistance. It is now trading above $382 and testing the 100 hourly simple moving average. In order to start another strong rally, ETH has to clear the $390 resistance and settle above $392. A close above the $392 resistance could start a larger upward movement towards the $405 and the $412 levels. Further gains could lead the price to the $420 resistance level.

ethereum price
Chart of ETH’s price action over the past few weeks with technical analysis by crypto trader Trader Koz (TraderKoz on Twitter).

If ETH fails to clear the $390 and the $392 resistance levels, it could start another downside reaction. The initial support on the downside is close to the $382 level.  The first major support is clear the $380 level. A clear break below the $380 will start another decline to the main $372 support level. more losses could push the price towards the $365 level in the upcoming sessions. The technical indicators of the MACD for the pair are gaining momentum in the bullish zone. The hourly RSI for the pair is well above 50. The Major support level is set at $380 while the major resistance level is set at $392.

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Source: https://www.dcforecasts.com/ethereum-news/ethereum-recovers-above-392-another-rally-is-in-the-books/

Blockchain

Who pulls the trigger on Bitcoin’s volatility?

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The volatility that drove Bitcoin’s price below $31,000 has now brought it up to the $33,000-level, based on CoinMarketCap. In previous market cycles, the volatility has shown a cyclical nature. However, in the current market cycle, it depends on the momentum and activity of institutional investors.

Back in 2018, there was institutional participation. Alas, the momentum was high for only a short period of time and the short-term volatility was what led to a massive drop on the charts. More than the price, the perceived value of Bitcoin has had an impact on the current volatility. Since there was accumulation at the $34,000-level by most institutions and whales, the price was soon heading towards the $34,000-level on the charts again.

Who pulls the trigger on Bitcoin volatility?

Bitcoin Volatility || Source: Woobull Charts

Another metric, the active supply that increased significantly over the past 2 months, more so in 2021, may have led to increased volatility and the price drop on spot exchanges. A high active supply can be equated to increasing sell pressure. The price fluctuates in response to the cascading sell-off, and this is what happened during the “double-spend” sell-off on Thursday.

As demand for Bitcoin on spot exchanges is revived, sell-pressure is expected to ease off. In the current market cycle, institutional investors are pulling the trigger on volatility, even though the sharp sell-off on Thursday raised more questions on the sustainability of the price rally.

However, post the aforementioned price decline, Bitcoin made a comeback with 24-hour gains of over 5%, with the same trading at $33,460, based on CoinMarketCap, at press time.

In light of the inflows of investments into institutions’ Bitcoin products, it is likely that there may be an increase in demand and consequently, in volatility, leading to a short-term top in Bitcoin’s price.

Who pulls the trigger on Bitcoin volatility?

Grayscale’s Bitcoin Holdings || Source: bybt

When the price dropped, Grayscale added over 4% new Bitcoins to its holdings. Despite the significant drop in prices, institutions are not seen liquidating their holdings and if they continue to HODL, the price may continue on its onward trend. The immediate challenge is that of active supply on exchanges and that may drop once OI on derivatives exchanges increases to the level before the drop. This may occur post the Bitcoin Options expiry at the end of January. An increase in trade volume and volatility by institutions may lead the way.

Source: https://ambcrypto.com/who-pulls-the-trigger-on-bitcoin-volatility

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The race is on yet again for crypto ETFs as Valkyrie files registration

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In a move that may give seasoned investors flashbacks to 2018, Valkyrie Digital Assets is the latest asset management firm to file a registration with the SEC to form a Bitcoin ETF — a bid that joins a crowded field of prospective fund managers looking to capitalize on renewed retail interest in cryptocurrencies. 

Filed on Friday, the Texas-based family investment fund proposed listing the Valkyrie Bitcoin Trust on the New York Stock Exchange. The application did not include a possible trading ticker.

If history is any indication, however, the filing’s chances of leading to a tradable fund are slim. During the last Bitcoin bull run, multiple firms attempted to throw their hat into the ring as at least nine entities filed proposals for a Bitcoin ETF with the SEC, including ETF giants VanEck and Direxion, as well as Gemini, the crypto services firm formed by Cameron and Tyler Winklevoss.

In a previous interview with Cointelegraph, Kryptoin CEO Donnie Kim, whose firm filed for an ETF in October of 2019, says that the SEC has long been hesitant to move forward with proposals.

“At this moment in time the commission is listening and learning about this new asset class and they are in a holding pattern, partly to understand the consequences of the existing products on the market and partly to look for further guidance under the current political landscape,” said Kim.

Despite the commission’s historical reticence, as retail interest in cryptocurrency booms fund managers are once again clamoring to be the first to offer an ETF product.

On Thursday, Jan. 21 gold ETF giant VanEck — which was the first company to ever file for a Bitcoin fund — filed to form a Digital Assets ETF, which would track the performance of the Global Digital Assets Equity Index made up of crypto service companies.

While American ETFs have been hard to come by, other exchange-traded products are flourishing. Options for traders include a Swiss Bitcoin ETP, a bevvy of Grayscale products that may be expanding to include Chainlink in the coming months, and an Ethereum ETF in Canada that proved so popular trading had to be halted in its debut.

Source: https://cointelegraph.com/news/the-race-is-on-yet-again-for-crypto-etfs-as-valkyrie-files-registration

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Tezos, Verge, Nano Price Analysis: 23 January

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After Bitcoin clawed back to touch the $32,000-level from the sellers, the rest of the altcoin market took heart and posted gains of their own on the charts. Similarly, altcoins such as Tezos, Verge, and Nano were in the green at press time and projected more upside over the coming sessions.

Tezos [XTZ]

Source: XTZ/USD, TradingView

Taking cues from the broader market, Tezos skyrocketed by nearly 15% on the charts and traded close to $3.20, at press time. Gains over the past 24 hours pushed XTZ’s market cap north of the $2.5 billion mark as it climbed on the rankings to become the 16th-largest cryptocurrency by market cap.

A look at XTZ’s 4-hr chart showed that the price broke above its 20-SMA (red) and 50-SMA (black) and targeted the upper ceiling at $3.45. The next few sessions could be crucial for XTZ, as an extended bull run could push the price all the way to its August 2020 levels.

The Awesome Oscillator highlighted the strong shift of momentum towards the bullish side, as depicted by the green bars on the histogram.

The bullish momentum could perhaps be attributed to Tezos’ recent announcement related to its Homebase Project, a project that allows users to create DAOs on Tezos based on a new smart contracts framework.

On the other hand, the Stochastic RSI traded in the overbought zone and looked primed for a reversal. This indicated that further efforts by buyers would be required to maintain the price above its press time support.

Verge [XVG]

Source: XVG/USD, TradingView

At the time of writing, Verge traded at $0.012, up by 7.5% in the past 24 hours. The price broke above its previous resistance and headed towards the strong resistance line of $0.014. A northbound breakout from $0.014 could confirm an uptrend for XVG, but cues from the broader market would be needed to maintain such bullishness.

The Relative Strength Index was flat and rested in the neutral territory. If the index moves lower over the next few sessions, the price could move towards its latest support line once again.

On the flip side, the MACD witnessed a bullish crossover, signaling the onset of a potential bull run.

NANO

Source: NANO/USD, TradingView

NANO found support at $3.15 as the price seemed bullish over the last 24 hours. However, the bulls were unable to push the price above the resistance at $3.44 as the price settled close to its support level. Going forward, the price could consolidate between the aforementioned channels and an influx of additional buyers would be required for a northbound breakout over the coming days.

The Chaikin Money Flow highlighted the short-term bullishness for the cryptocurrency as the index looked to move above zero, a sign that capital was flowing into NANO.

The Parabolic SAR was also bullish as the dotted markers were observed below the candlesticks.

Source: https://eng.ambcrypto.com/tezos-verge-nano-price-analysis-23-january

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