Bitcoin (BTC) is trading near $80,000 at the time of writing on Monday, having retreated from a three-month high at $80,635. The crypto market is generally bullish, with major altcoins such as Ethereum (ETH) and Ripple (XRP) posting modest daily gains.
Bitcoin briefly cleared the $80,000 mark, the highest level in three months, on Monday, liquidating $138 million in shorts. Crypto sentiment improved, with inflows into US-listed spot ETFs totaling $154 million last week. About $59 million in token unlocks are expected this week, which could increase market volatility.
Bitcoin (BTC) is trading near $80,000 at the time of writing on Monday, having retreated from a three-month high at $80,635. The crypto market is generally bullish, with major altcoins such as Ethereum (ETH) and Ripple (XRP) posting modest daily gains.
Strengthening market sentiment is driving a more bullish outlook, as evidenced by increased capital inflows into digital asset investment products.
Bitcoin Recovers Amid Easing Selling Pressure
Crypto market sentiment is trending higher, with the fear and greed index holding at 47 on Monday, up sharply from 29 the previous day. While the index remains in the fear zone, this level represents a significant increase from last month’s average of 11, which is extreme fear territory.
A steady rise in the index will strengthen the crypto market’s recovery prospects, increasing the chance that Bitcoin will reclaim support above $80,000 and grind towards $90,000.
Bitcoin spot exchange-traded funds (ETFs) marked five consecutive weeks of inflows with $154 million recorded through Friday. Although a decline from the previous week’s $824 million in capital inflows, the data shows a steady appetite for risk assets despite the geopolitical uncertainty surrounding the United States (US)-Iran conflict.
Cumulative inflows now stand at $58.72 billion, with net assets under management averaging $103.78 billion. The demand for spot ETFs aligns with the rising sentiment in the crypto market.
Bitcoin’s surge above $80,000 triggered liquidations, with short holders losing about $138 million on Monday. In contrast, nearly $46 million in long positions were liquidated. Reclaiming $80,000 as support could increase investor conviction and extend BTC’s recovery potential.
Chart of the Week: Bitcoin Poised to Extend Gains Above $80,000
Bitcoin is trading at $79,772 and consolidating in a neutral, range-bound structure after recovering from its 200-week exponential moving average (EMA) near $68,062. The Crypto King now sits above this long-term EMA support, but remains below the 100-week EMA at $82,352 and the 50-week EMA at $85,777, which together indicate a still-capped broader trend despite improving tone.
The relative strength index (RSI) at 48 on the weekly chart remains near the midline, while the moving average convergence divergence (MACD) histogram remains in positive territory, suggesting recovery but not yet dominant bullish momentum as the market digests previous losses.
On the downside, initial support lies at the 200-week EMA around $68,061, with a deeper floor emerging near the previous downtrend line break level at $65,981 as sellers regain control. On the upside, immediate resistance is seen at the 100-week EMA at $82,352, followed by a stronger supply zone at the 50-week EMA near $85,777. A sustained weekly close above this upper band will be needed to more convincingly tip the medium-term bias back in favor of the bulls.
Upcoming $59 million token unlock signals potential volatility
Several token unlock events totaling $59 million are expected this week, led by Canton’s $22.61 million, Tasbare’s $2.93 million and Chelee’s $2.77 million on Monday.
Other notable releases include Stepn’s roughly $539,000 on Friday and Stable’s $29.33 million on Saturday. Cumulative unlocks amount to $59 million, which can cause volatility, especially for the tokens involved.
Token unlocks are considered scheduled supply shocks, which can lead to higher volatility. Anticipatory selling can take place before the events. However, the exact impact of the unlocks is nuanced, with cases of prices in bonds.
(The technical analysis of this story was written using an AI tool.)
Bitcoin, altcoins, stablecoins FAQ
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any person, group or entity, eliminating the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also consider Ethereum a non-altcoin because it is from these two cryptocurrencies that forking takes place. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and thus an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset they represent. To achieve this, the value of any one stablecoin is tied to a commodity or financial instrument, such as the US dollar (USD), with its supply regulated by an algorithm or demand. The main purpose of stablecoins is to provide an on/off for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value, as cryptocurrencies are generally subject to volatility.
Bitcoin dominance is the ratio of Bitcoin’s market cap to the total market cap of all cryptocurrencies combined. This gives a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically occurs before and during a bull run, in which investors turn to invest in relatively stable and high market cap cryptocurrency like Bitcoin. A drop in BTC dominance usually means investors shift their capital and/or profits to altcoins in search of higher returns, which usually triggers an explosion of altcoin rallies.
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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