| Reading time: 5 minutes | News | Crypto Converter | Crypto Calculators | Bitcoin's bull run faces key test at $91K amid bearish signals | | Key points: | Bitcoin dropped nearly 10% from its all-time high of $109,000, trading below $98,000. $91,000, the short-term holder cost basis, is a crucial support level to sustain the bull run.
| News: BTC rally faces headwinds after market dip - Bitcoin's bull run has hit a significant hurdle as the cryptocurrency dropped nearly 10%, settling below $98,000. This decline comes amid broader market concerns, including fears over China's hyper-efficient DeepSeek AI model potentially disrupting U.S. industries at lower costs. | Since Donald Trump's U.S. presidential election victory, Bitcoin has climbed from $66,000 to an all-time high of $109,000. However, the rally has experienced two notable 15% corrections, with the latest 10% drop aligning with historical trends. | $91K: A critical support level - A key support level for Bitcoin lies at its short-term holder cost basis—$91,000. This metric reflects the average on-chain cost of coins moved within the last 155 days. If Bitcoin falls below this threshold, it could signal trouble for the ongoing bull run. | Bearish sentiment is also mounting. Bitcoin funding rates have turned negative, suggesting growing short pressure in the derivatives market. Arthur Hayes, co-founder of BitMEX, predicts a possible correction to the $70,000–$75,000 range before Bitcoin resumes its upward trajectory toward $250,000. | Market-wide sell-off amplifies pressure - The crypto market is not alone in facing headwinds. U.S. equity markets have also seen a downturn, with Nasdaq futures plummeting by as much as 4%. This broader market sell-off could further weigh on Bitcoin's price action. | What's next? - Bitcoin remains in a precarious position, with $91,000 acting as the line in the sand for bulls. If this support level holds, the cryptocurrency may regain momentum. However, a dip below could validate bearish reversal patterns, potentially pushing BTC toward $75,000 or lower. | As the crypto market continues to navigate these turbulent waters, investors will closely watch both Bitcoin's price movement and macroeconomic developments for further direction. | XRP falls 10% as crypto markets react to AI disruption and liquidations | | Key points: | XRP price fell to $0.81 on January 27, down 10.25%, amid a broader market sell-off triggered by China's DeepSeek AI disruption. $32.92 million in XRP long positions were liquidated, adding to bearish pressure. Despite the drop, XRP remains within a bullish flag pattern, hinting at potential upside toward $4 in February.
| News: XRP price drops amid AI disruption and market sell-off - XRP's price fell 10.25% to $0.81 on January 27, mirroring broader market trends driven by macroeconomic factors and technical developments. Here's what caused the downturn and why analysts see potential for recovery: | DeepSeek disrupts global markets - XRP's decline coincided with a broader sell-off in crypto and tech stocks, spurred by China's DeepSeek, an AI startup whose cost-efficient model challenges high-end chipmakers like Nvidia. Concerns over tech valuations led Nasdaq 100 futures to drop 3.4% and S&P 500 futures to slide 2%, pulling XRP along as its correlation with Nasdaq surged to 0.78, the highest since September 2023. | Liquidation cascade amplifies losses - Bearish momentum intensified as XRP futures markets experienced heavy liquidations. Over $32.92 million worth of long XRP positions were wiped out in the past 24 hours, while short liquidations only amounted to $3 million. This liquidation cascade forced bullish traders to sell their positions, further exacerbating the decline. | The scale of these liquidations mirrors XRP's December correction, during which $72.6 million in long positions were wiped out, resulting in a 23% price drop. | XRP bullish continuation pattern intact - Despite the recent sell-off, XRP continues to align with a bullish continuation pattern, hinting at potential upward momentum. The token has formed a bullish flag pattern, following its sharp rally from $1.90 to $3.94 earlier in January. | XRP's current consolidation within a descending channel could resolve upward if it maintains key support levels. Should the token break above the upper trendline at $3.10, it may signal a new rally toward $4, aligning with the symmetrical triangle breakout target of $3.77. | What's next for XRP? - Analysts suggest that XRP's short-term losses could set the stage for a rebound if certain conditions are met. Maintaining the 0.786 Fibonacci support level at $2.69 will be crucial for the token's recovery. | Additionally, stabilization in broader market conditions, particularly after the tech-driven sell-off, could provide the necessary environment for XRP to regain bullish momentum. Finally, breaking above the bull flag's upper trendline would bolster investor confidence and potentially drive the token to higher levels. | MicroStrategy's Bitcoin holdings surge to 471,107 BTC with latest $1.1 billion purchase | | Key points: | MicroStrategy acquired 10,107 BTC for $1.1 billion between January 21 and January 26. The firm now holds 471,107 BTC, maintaining its position as the largest corporate Bitcoin holder.
| News: MicroStrategy's $1.1B Bitcoin purchase reinforces aggressive strategy - MicroStrategy has added another 10,107 Bitcoin to its holdings, spending approximately $1.1 billion at an average price of $105,596 per BTC, according to co-founder Michael Saylor. The purchase, completed between January 21 and January 26, brings the company's total Bitcoin holdings to 471,107 BTC. | The announcement came on January 27 during pre-market hours, coinciding with Bitcoin's price dip below $100,000 for the first time since President Donald Trump took office. | This marks MicroStrategy's 12th consecutive week of Bitcoin purchases, underscoring its aggressive accumulation strategy, which began in August 2020 with a 21,454 BTC purchase funded by corporate cash. Since then, the company has leveraged debt issuance, including convertible notes and senior secured notes, to finance its Bitcoin acquisitions. | Corporate Bitcoin adoption inspired by MicroStrategy - MicroStrategy's bold Bitcoin strategy has spurred other companies globally to adopt similar approaches: | Japan's Metaplanet ended 2024 with 1,762 BTC, driving a 2,000% surge in its stock price. The company plans to increase its holdings by 467% in 2025. Fathom Holdings, a Nasdaq-listed real estate firm, recently allocated up to $500,000 for Bitcoin and Bitcoin ETFs to diversify its balance sheet away from the US dollar.
| What's next? - MicroStrategy's recent purchases stem from its "21/21 plan," allowing it to issue and sell shares of its class A common stock to raise up to $21 billion. From January 21 to January 26 alone, the company sold over 2.76 million shares for $1.1 billion, with $4.35 billion still available for future issuance. | With this flexible approach, MicroStrategy remains a trailblazer in corporate Bitcoin adoption, signaling confidence in the asset's long-term potential while inspiring global firms to follow suit. | Poland surpasses El Salvador as fifth-largest Bitcoin ATM hub | | Key points: | Poland's Bitcoin ATM count surged to 219, surpassing El Salvador to become the fifth-largest globally. A four-month installation spree added 24 ATMs, with 10 installed on January 27 alone.
| News: Poland leads ATM growth amid global expansion - Poland has overtaken El Salvador to claim the fifth spot in the global Bitcoin ATM rankings, with a total of 219 active machines as of January 27. This milestone was achieved through a four-month expansion effort that saw the addition of 24 ATMs, including 10 installed on the same day. The country now trails only the United States, Canada, Australia, and Spain in the number of active crypto ATMs. | El Salvador, once the third-largest hub in October 2022 with 215 ATMs, has fallen behind due to stagnation in new installations. While it pioneered Bitcoin adoption with an early ATM rollout, the nation's capacity has remained unchanged, raising concerns about its long-term commitment to driving crypto infrastructure growth. | A broader look at global Bitcoin ATM trends - Globally, over 38,100 crypto ATMs operate across 65 countries, managed by 356 operators. Among these, Poland's recent growth stands out, especially as other leading nations like Australia and Spain also report consistent monthly increases in active ATMs. | Australia, in particular, has shown remarkable growth, joining the 1,000+ Bitcoin ATM club in 2024 alongside the US and Canada. Meanwhile, concerns about potential misuse of crypto ATMs for illicit activities persist, prompting calls for stricter regulations from financial watchdogs. | What's next for Poland and Bitcoin adoption? - Poland's aggressive expansion highlights its commitment to enhancing grassroots crypto adoption and financial inclusion. While crypto ATMs may not directly drive adoption, they remain a key infrastructure component for unbanked communities and those seeking entry into the digital asset space. | As Poland solidifies its position as a major player in the Bitcoin ATM market, the question remains whether El Salvador can reignite its infrastructure growth and reclaim its former standing in the global rankings. | | More stories from the crypto ecosystem | | Did you know? | In 2020, the market capitalization of Decentralized Finance (DeFi) tokens surged from $1 billion to over $13 billion in just six months. This rapid growth highlighted the increasing interest in decentralized financial services like lending, borrowing, and decentralized exchanges. Ethereum's "gas fees" were designed to prevent spam on the network by requiring users to pay a small fee for every transaction. These fees fluctuate based on network congestion and the complexity of the transaction, and in 2021, Ethereum's gas fees surpassed $10 billion for the first time. In 2021, Bitcoin's environmental impact was debated heavily, as the energy consumption of Bitcoin mining was equivalent to that of some entire countries, such as Argentina. This led to calls for more sustainable mining practices, with some companies and countries focusing on renewable energy sources for mining operations.
| | Top 3 coins of the day | Jupiter (JUP) | | Key points: | At press time, JUP was trading at $1.07, reflecting a 2.47% increase over the last 24 hours. It emerged as the biggest gainer in the last 24 hours, according to CoinMarketCap.
| What you should know: | JUP demonstrated strong bullish momentum, climbing 2.47% over the past 24 hours to become the top-performing cryptocurrency. The Bollinger Bands on the daily chart revealed heightened volatility, with the price breaking above the upper band, signaling increased buying pressure. The MACD indicator displayed a bullish crossover, with the MACD line moving above the signal line and the histogram bars turning positive, suggesting growing bullish sentiment. Trading volume surged significantly, reflecting a renewed interest from market participants. Immediate support was observed at $0.88, aligning with the middle Bollinger Band, while resistance lay at $1.10, near the recent price peaks. Traders are advised to monitor the MACD closely for continued bullish momentum and watch for any potential retracements toward the $0.88 support level. | Aioz Network (AIOZ) | | Key points: | At press time, AIOZ was trading at $0.79, reflecting a 10.05% decrease over the last 24 hours. Despite the decline, it saw increased trading activity.
| What you should know: | AIOZ experienced a sharp decline over the past 24 hours, registering a 10.05% loss, which marked it as one of the biggest market losers. On the daily chart, the SMA 9 line showed a downward trend, reinforcing the bearish sentiment. The Awesome Oscillator (AO) also confirmed this, with red histogram bars indicating sustained selling pressure. Trading volume spiked significantly during the recent session, reflecting heightened market activity. This surge in volume suggests strong market interest despite the bearish sentiment. Immediate support is positioned near $0.70, where previous consolidation occurred. Resistance lies around $0.90, aligning with the SMA 9. Traders should monitor the AO for signs of momentum shifts and watch for potential reversals if volume sustains at current levels. A break below support might lead to further declines, while a recovery above resistance could trigger bullish momentum. | Onyxcoin (XCN) | | Key points: | At press time, XCN was trading at $0.034, reflecting a 23.26% decrease over the last 24 hours. It ranked as one of the biggest losers in the market, according to CoinMarketCap.
| What you should know: | XCN experienced a significant decline in the past 24 hours, with its price dropping by 23.26%. The Parabolic SAR indicated a strong bearish trend, as the markers were positioned above the price action, suggesting continued downward momentum. The Chaikin Money Flow (CMF) was in negative territory, reflecting increased selling pressure and a lack of buying interest. Trading volume also surged, which is often accompanied with sharp price declines, indicating heightened market activity. Immediate support is identified around $0.030, a level that previously acted as resistance and may now serve as support. Resistance is observed near $0.040, aligning with recent consolidation zones. Traders should monitor the Parabolic SAR for potential trend reversals and the CMF for signs of renewed buying interest. A break below the support level could lead to further declines, while a recovery above resistance might signal a reversal. | How was today's newsletter? | |
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