Crypto Price Prediction: The crypto market has seen a surge in volatility since the approval of spot Bitcoin ETFs on Wednesday. Amid the ETF approval and two trading days in the US market, the underlying asset BTC temporarily hit $49,000, but made a quick pullback to $42,000. This selling pressure spread across top altcoins raises concerns about the sell-the-news theory.
Also Read: What’s Next After Spot Bitcoin ETF? Expert reveals key trends to watch
BlackRock accumulates Bitcoin in the current market decline
BlackRock’s recent move into Bitcoin, especially buying during a dip, indicates a significant shift in their asset allocation. In just two days, this single player withdrew 11,500 BTC from the market, which is equivalent to approximately 13 days of Bitcoin’s daily supply, which stands at 900 BTC.
Furthermore, the IBIT Spot ETF represented only about 25% of the trading volume during this period, implying that an additional 46,000 BTC could have been absorbed from the market over two days, partly influenced by the activity around $GBTC.
Well-known analyst InvestAnswers also projected that the estimated daily consumption of Bitcoin by US ETFs alone is about 23,000 BTC, based on the assumption that 11,500 BTC withdrawals are repeated four times (11,500 x 4 = 46,000). This is more than 25 times the daily production of Bitcoin. This figure does not even account for demand from retail investors and other global ETFs.
The main takeaway here is that despite the volatility in its price, Bitcoin appears to be an incredibly resilient asset. If the current trend of high demand and limited supply continues, the market may experience an extreme supply crunch.
Amid the indecisive sentiment in the market, Ethereum (ETH), Tezos (XTZ) and SUI displayed strong resilience and intact bullish outlook.
Is Ethereum (ETH) Price Ready For $3k?
The continued recovery trend in Ethereum (ETH) price can be traced using a rising support trendline that provides buyers with dynamic support during pullback. Surprisingly, the announcement of the Spot Bitcoin ETF approval had a more pronounced effect on ETH than on Bitcoin, resulting in a 10.4% increase on Wednesday.
This rally pushed the ETH price past the previous swing high resistance of $2,400, suggesting a potential for further growth. The approval of a spot Bitcoin ETF also increased the likelihood of a Spot Ethereum ETF, which could significantly increase Ethereum’s value.
Should the ETH price maintain stability above the newly established $2,400 support level, this could allow buyers to drive a prolonged recovery, possibly reaching price targets of $2,700, then $3,000, and finally $3,281.
The Bollinger Bands indicator further supports this bullish outlook; an increase in the upper boundary of the Bollinger Bands indicates that buyers are gaining control of the market.
Bullish reversal pattern sets Tezos (XTZ) price up for 28% upswing
Amid heightened anticipation for a spot Bitcoin ETF, the Tezos (XTZ) price saw a significant recovery from the $0.8 local support earlier this week. This bullish momentum led to an impressive 42.7% rally, positioning buyers to potentially retest the last swing high of $1.19.
A closer examination of the daily time frame chart reveals that the current rise in XTZ price is forming a bullish reversal pattern known as the inverted head and shoulders. Driven by this pattern, the coin is expected to reach the neckline resistance at $1.485.
Hence, if XTZ successfully breaks out of the immediate resistance at $1.19, it could allow buyers to push the price up about 28% from its current trading price of $1.154.
A bullish breakout of the neckline resistance will provide stronger confirmation of a trend reversal. In addition, a bullish crossover between the MACD (blue) and the signal (orange) lines indicates that a recovery trend is currently active.
SUI price targets $1.5 amid strong bullish momentum and TVL growth
Bucking the trend of prevailing market uncertainty, the SUI token experienced a notable inflow mid-week. On January 11, this altcoin saw a 29% rise, breaking out of a two-week consolidation phase and surpassing key resistance levels at $0.92 and $1. At press time, the SUI price stood at $1.29, showing an impressive 80% intra-week growth. This rise, coupled with a meteoric rise in Total Value Locked (TVL), indicates increasing interest among traders and expectations of a significant recovery in 2024.
The Sui Network, a layer-1 blockchain, recently reported a 500% growth in TVL over the past three months, an even more remarkable 1350% increase over six months. Current data from market analytics platform DeFi Llama puts Sui’s TVL at an impressive $315.99 million.
If the SUI price can maintain its position above the recent support level of $1.25, there is potential for buyers to extend the rally by an additional 15.8%, with an eye on a target of $1.5.
The average daily directional index (ADX) value, which stands at 25%, indicates that the recent consolidation phase has successfully renewed the previously exhausted bullish momentum.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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