Bitcoin (BTC) has recovered after facing significant selling pressure. On the 23rd, it dropped to a day low of $65,198 before recovering and pushing back above $67,000. Currently, BTC is trading around the $67,200 mark, up by almost 1.50% in the past 24 hours as markets recover, with most altcoins registering substantial increases over the past 24 hours.
However, Ethereum (ETH) has continued to decline and is struggling to stay above $2,500, with the price down over 2% in the past 24 hours. Other major cryptocurrencies still in the red include Cardano (ADA), Avalanche (AVAX), Polkadot (DOT), Arbitrum (ARB), and Optimism (OP).
ChangeNOW CMO Pauline Shangett stated:
Bitcoin has shown impressive resilience, bouncing back from a low of $65,198 to trade around $67,200, reflecting a 1.50% gain as market sentiment improves. The broader recovery in altcoins suggests renewed buying interest, although key assets like Ethereum remain under pressure, down over 2% and struggling to maintain the $2,500 level.”
Is Bitcoin (BTC) Entering A Stabilization Phase?
Analysts have suggested that Bitcoin (BTC) is entering a stabilization phase, with major indicators suggesting traders are settling into an accumulation period. The news comes despite price fluctuations that have seen BTC almost slip below $65,000 before recovering and climbing back above $67,000. Meanwhile, Ethereum (ETH) has continued its decline and is down nearly 3% over the past week as it struggles to maintain its position above $2,500.
Analysts have pointed to several factors that back the stabilization thesis. Circle has seen a reduction of almost $1.7 billion in the supply of USDC, offset by significant liquidity indicators, including substantial stablecoin inflows totaling $38 billion. This is significantly higher than the inflows attracted by spot Bitcoin ETFs. Analysts at 10x Research believe markets are absorbing several factors before resuming an upward trajectory.
“Instead of turning overly pessimistic, we believe the market needs time to digest the higher bond yields before Bitcoin can resume its upward movement. We’d like to see multiple indicators aligning to confirm bullish momentum, but this isn’t a significant concern. The market likely needs a few days to absorb these factors.”
Additionally, stablecoin inflows have also been a significant liquidity driver, along with heightened institutional activity.
“After a streak of seven consecutive days of ETF inflows totaling over $2 billion, Bitcoin’s ETF inflows have temporarily paused. While this indicates a minor dip in institutional demand, we’re still seeing accumulation at the current price level, which suggests a potential uptrend once the market consolidates.”
Crypto Liquidations See Significant Jump
Data from CoinGlass has revealed that crypto liquidations have hit a staggering $271 million, the highest number recorded this week. According to CoinGlass, Ethereum (ETH) is leading the liquidations with $72 million lost as investors suffered following the altcoin’s failure to build sustained momentum. Long traders lost $56.58 million, while short traders lost $16.4 million. Not to be left behind, Bitcoin (BTC) registered liquidations totalling $56.55 million, with long traders accounting for almost $29 million.
The market’s recent slump also saw Solana (SOL) face liquidations worth just over $10 million.
South Korea’s Exchange Shutdowns Leave Customers High And Dry
Several crypto exchanges in South Korea have shut down due to the country’s Virtual Asset User Protection Act, leading to customers losing almost $13 million as investments are stuck in limbo. Eleven crypto platforms have shut operations due to the act, with three more temporarily suspending operations. South Korean authorities introduced legislation to regulate virtual assets in July 2024 to protect investors, allowing users to recover their assets in the event of the exchange collapsing.
With the exchanges shuttering, almost 34,000 investors can reclaim almost $13 million from these platforms. According to reports, the exchanges collectively hold 17.8 billion won ($12.8 million) in investment assets. This includes 1.41 billion won ($1.02m) in cashable assets and 16.4 billion ($11.8m) won in virtual assets. A further 30.7 billion won ($22.2 million) are currently inaccessible and are held with three exchanges that have temporarily paused services.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) and the crypto market took a hammering on Wednesday, with the world’s largest cryptocurrency almost slipping below $65,000 as the crypto markets mirrored the decline in the stock markets. BTC initially dropped over 2.50% before recovering and climbing back above $67,000. The drop has seen any prospects of a jump above $70,000 and a new all-time high evaporate as BTC now looks to reclaim lost levels. The drop also highlights the volatility in the crypto markets and their interconnected nature with traditional markets. BTC’s decline can be partly attributed to a drop in technology stocks, notably Tesla, which is set to release its latest earnings. Analysts expect a decline from the 66 cents per share reported one year ago.
Looking at the price chart, BTC has been on a downward trajectory since the beginning of the week despite being extremely bullish the week prior. BTC registered substantial increases last Monday and Tuesday, and by Friday, it had pushed above $68,000 and settled at $68,398. However, momentum began waning, and the price dropped marginally on Saturday, dropping to $68,278 before recovering on Sunday and rising to $68,773 after an increase of 0.72%.
Source: TradingView
BTC started the current week in the red as sentiment flipped to bearish as buyers failed to push on to $70,000, with BTC managing a day high of $69,401 before falling back. As a result, sellers assumed control, and the price dropped by just over 2% and settled at $67,307. Volatility increased on Tuesday as buyers and sellers attempted to establish control. Ultimately, BTC registered only a marginal increase and settled at $67,386. BTC faced intense selling pressure on Wednesday as sellers dragged the price to a low of $65,225. However, the price recovered from this level as buyers entered the market, eventually settling at $66,658, a drop of 1.09%. The current session sees BTC back in positive territory, currently up by almost 1.50% and trading around the $67,664 mark.
Some analysts have warned that BTC has reached its peak in the near term as the US elections loom. According to a report by Copper Research, analysts noted that 98% of wallet addresses are in the money, stating that when this ratio has registered an increase, it has almost always led to selling pressure from investors looking to book profits.
“Historical patterns emerge when large swings occur. At the same time, when we see a significant percentage of BTC addresses turning a profit, this usually leads to selling pressure. This could indicate that the market and Bitcoin are experiencing a short-term and temporary peak, and the selling pressure may continue.”
Currently, BTC is struggling to push above $67,500, indicating selling activity at upper levels. If buyers can regain momentum, we could see BTC push back above $68,000. However, whether a move to $70,000 materializes remains to be seen. On the other hand, if sellers regain control, we could see BTC drop back towards $65,000.
Ethereum (ETH) Price Analysis
Ethereum (ETH) is struggling to recover and stay above $2,500 as selling pressure continues to weigh the price down. ETH is currently down almost 2% over the past 24 hours and over 3% over the past seven days, spending most of the ongoing week in the red. If ETH continues to decline, we could see it slip below $2,500. Looking at the price chart, we can see that ETH faced significant volatility after registering a sharp increase last Monday when it rose by 6.54% to $2,630. Despite facing intense volatility until Thursday, ETH found itself back in the green on Friday, rising by 1.41% and settling at $2,641. ETH also attempted to push to $2,700 but lost momentum after reaching a day high of $2,675. Momentum waned on Saturday as ETH registered only a marginal increase before rising by almost 4% on Sunday to surge past $2,700 and settle at $2,746.
Source: TradingView
However, bulls lost momentum on Monday, and ETH registered a substantial drop of almost 3%, slipping back below $2,700 and settling at $2,666. ETH continued to drop on Tuesday, declining by 1.73% and settling at $2,620. Bearish sentiment intensified on Wednesday as sellers dragged ETH to a day low of $2,451 below crucial support levels and the 20- and 50-day SMAs. However, buyers were able to prop up the price to a certain extent, and ETH eventually climbed back above $2,500 and settled at $2,522. The current session sees ETH marginally up as it struggles to push above the 20-day SMA. With the bulls struggling, if sellers can push ETH below $2,500, we could see the price slip to $2,400 or $2,300.
Solana (SOL) Price Analysis
Solana (SOL) surged past $170 during the ongoing session as it continues its recent bullish uptick, with buyers now eying the $180 price level. SOL has been extremely bullish since recovering from a day low of $147 on Thursday as it rebounded from the 20-day SMA. Friday saw SOL register an increase of almost 3% as it moved past the 200-day SMA and $150 and settled at $154. Bullish sentiment persisted over the weekend as SOL rose by 3.11% on Saturday, moved to $159, and surged past $160 on Sunday after an increase of 5% pushed the price to $167.
Source: TradingView
However, SOL encountered significant volatility on Monday as the $170 resistance level came into play. Buyers attempted a move past $170 while sellers looked to drag SOL back below $160. As a result, SOL dropped to a day low of $161 and then a day high of $171 before settling at $166 after registering a marginal drop of 0.71%. Tuesday saw volatility persist as buyers and sellers struggled for control. However, buyers gained the upper hand this time and pushed SOL up by 0.80% to $167. SOL finally exceeded $170 on Wednesday, as it rose to $170.77 after an increase of 1.96%. Buyers attempted to push higher as SOL reached a day high of $174 but eventually lost momentum.
The current session sees SOL trading at $175, up by almost 3% as buyers look to push towards $180. If SOL can break above this level, we could see a surge to $200. However, bears will defend $180 and look to drive SOL back below $170 and towards the $160 level.
Dogecoin (DOGE) Price Analysis
With its recent bullish surge stalling, Dogecoin (DOGE) is struggling to push above $0.150. DOGE has been incredibly bullish since the beginning of the previous week after rebounding from a day low of $0.111. By Friday, DOGE had surged past the 200-day SMA after an increase of almost 6% and settled at $0.137. Bullish sentiment persisted on Saturday, with DOGE posting a jump of almost 5%, going above $0.140 and settling at $0.144. Sellers attempted to take control on Sunday as DOGE fell to a day low of $0.137. However, it recovered and pushed back above $0.140 to settle at $0.142, eventually registering a decline of $0.142.
Source: TradingView
The price experienced intense volatility on Monday as buyers attempted to push above $0.150 while sellers attempted to drag it below $0.140. Buyers eventually came out on top, but DOGE could not push above $0.150, eventually settling at $0.143. Tuesday saw volatility persist as buyers attempted to go above $0.150 but were thwarted yet again. This time, sellers took control and pushed DOGE down by 2.30% to $0.140. DOGE fell to a day low of $0.132 before recovering and settling at $0.140, registering only a marginal decline. The current session sees buyers back in control, with DOGE up by 1.14% after sellers failed yet again to push the price below its support level of $0.136.
Celestia (TIA) Price Analysis
Celestia (TIA) has been trading between $5.50 and $6.50 since the beginning of the previous week as buyers struggle to push above $6.50 and sellers facing exhaustion at $5.50. TIA faced significant volatility during the previous week as buyers and sellers struggled to gain control. Volatility decreased on Saturday, but so did TIA, as it registered a drop of 2.43% and settled at $5.86. However, it recovered on Sunday, rising by almost 4% to push back above $6 and settle at $6.10. The current week started with a substantial drop as TIA recorded a drop of nearly 8% and settled at $5.62.
Source: TradingView
However, it recovered on Tuesday, rebounding after dropping close to its support levels and rising by 2.77% to $5.78. Sellers attempted to push TIA below the 20-day SMA on Tuesday as it fell to a day low of $5.66, but with strong support at lower levels, buyers regained control. As a result, TIA registered an increase of 3.31% and settled at $5.97. The current session sees TIA witnessing significant volatility as buyers look to push towards $6.50 while sellers look to drag it below the 20-day SMA. As of now, buyers have the upper hand, with TIA up by 0.69%.
Polkadot (DOT) Price Analysis
Polkadot (DOT) has given up all the gains of the previous week, with the current week seeing a significant decline as bearish sentiment dominates the market. DOT was quite bullish towards the end of the previous week, registering an increase of 2.63% on Friday to push above the 20 and 50-day SMA and settle at $4.30. The weekend saw bullish sentiment persist as DOT rose by 3.26% on Saturday to go above $4.50 and 2.93% on Sunday to settle at $4.57, just shy of the $4.60 mark. Sellers attempted to drag DOT below $4.50 on Sunday but were ultimately unsuccessful.
Source: TradingView
However, DOT lost momentum due to strong selling pressure at $4.60. As a result, the current week started with a substantial drop, falling by 4.28% to go back below $4.50 and settle at $4.37. Buyers attempted a recovery on Tuesday but were overwhelmed by sellers as DOT fell back in the red, dropping by 1.14% and settling at $4.32. Selling pressure intensified on Wednesday as DOT failed to stay above the 20 and 50-day SMAs after sellers dragged the price to a low of $4.10. However, it was able to recover from this level and eventually settled at $4.21 after a notable drop of 2.55%. The current session sees DOT marginally down as it faces significant volatility, with buyers attempting to push above the 20-day SMA and sellers looking to drag the price even lower.
DOT has support at $4, and it is expected that if it drops lower, the price could stabilize at this level. If this level is breached, we could see the price drop to its multi-year support of $3.62. On the other hand, if buyers can mount a recovery, we could see DOT push above the moving averages.
Ripple (XRP) Price Analysis
Ripple (XRP) is looking to recover after registering a substantial decline during the current week as sellers pushed the price below the moving averages. As we can see in the price chart, XRP has been trading in a narrow range since the beginning of October. After it pushed above the 200-day SMA in the middle of October, its trading range got even narrower, as XRP traded between $0.54 and $0.57. However, after a failed attempt to push above the 50-day SMA on Monday, XRP fell back significantly as sellers dragged the price down, eventually settling at $0.54.
Source: TradingView
Bearish sentiment intensified on Tuesday as XRP fell below the 20 and 200-day SMAs, registering a drop of 2.24%. Sellers continued to dominate on Wednesday, pulling XRP down to a day low of $0.51 before it recovered and settled at $0.52, a decline of 1.39%. The current session sees XRP marginally up as buyers look to regain control and reverse the recent bearish sentiment.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
