| Reading time: 5 minutes | News | Crypto Converter | Crypto Calculators | Ethereum's $4,000 rally stumbles as futures data reveals bearish trends | | Key points: | Ethereum futures has shown increased sell orders, with the taker buy-sell ratio at 0.84, signaling bearish sentiment. ETH's price faces resistance at $4,000, with risks of falling to $2,509 if the $3,332 support fails.
| News - Ethereum (ETH) has made notable gains over the past week, with its price currently sitting at $3,654. However, its rally towards the $4,000 mark is encountering challenges as data points to rising sell orders in the futures market. | According to CryptoQuant, Ethereum's taker buy-sell ratio has remained below one since January 4, 2025, currently standing at 0.84. This indicates a higher volume of sell orders compared to buy orders, reflecting bearish market sentiment. | Additionally, Ethereum's weighted sentiment metric—an aggregate of social media mentions and sentiment polarity—has been negative since mid-December. With a current reading of -0.67, the metric suggests sustained skepticism among traders, potentially dampening price momentum. | Key support and resistance levels - Ethereum's current price momentum places it just above a key support level at $3,332. If this support is breached, ETH could slide to $2,509, marking a substantial decline from its recent gains. | Conversely, if selling pressure eases and buying activity increases, Ethereum could aim to reclaim the $4,000 mark. This move would pave the way for a potential test of its four-year high of $4,783, achieved in late 2021. | What's next? - While Ethereum remains a dominant player in the altcoin market, its path to $4,000 depends heavily on shifts in market sentiment and trading activity. Increased sell-offs in the futures market and persistent negative sentiment could hinder upward movement. | Traders should closely monitor the taker buy-sell ratio and key support levels, as these indicators will likely determine Ethereum's trajectory in the short term. | Bitcoin nears $109K as ETF inflows and Trump speculation fuel bullish momentum | | Key points: | Bitcoin surged 10% over the past week, reclaiming $102,000 and reversing losses from early December. U.S. spot Bitcoin ETFs attracted $987 million in inflows on Monday, fueling bullish sentiment.
| News - Bitcoin's price has surged 10% over the past week, closing in on the $109,000 mark as the crypto market rides a wave of optimism fueled by record ETF inflows and anticipation around Donald Trump's inauguration. | Bitcoin regains momentum - After hitting a local low of $92,000 in late December, Bitcoin has reclaimed $102,000, effectively reversing its losses from earlier in the month. The current price surge comes as traders eye the $109,000 level, which could confirm a full bullish breakout. | ETF inflows reach new highs - Spot Bitcoin ETFs in the U.S. recorded inflows of $987 million on Monday, marking their highest level since November 21, 2024. Fidelity's FBTC led with $370 million, followed by BlackRock's IBIT at $209 million. Inflows across nine ETFs signal growing institutional interest as none recorded outflows on this standout day. | Market sentiment shifts - Traders are optimistic about Trump's potential pro-crypto policies, which have revived market confidence. The return of decision-makers after the holidays and a less aggressive Federal Reserve outlook are also contributing to the bullish trend. | Key support and resistance levels - | Resistance: $109,000 remains the critical level to breach for confirming a bullish trend. Breaking past this point could set Bitcoin on a trajectory toward even higher levels, analysts suggest. Support: Bitcoin finds solid support at $100,000, with traders closely monitoring Fibonacci retracement levels to gauge potential pullbacks.
| What's next? - Market participants are now focusing on the U.S. Nonfarm Payrolls (NFP) report this Friday, which could impact market dynamics. Strong labor market data may bolster the dollar and weigh on risk assets like Bitcoin. Additionally, the Federal Open Market Committee (FOMC) meeting later this month is being eyed as a high-volatility event for Bitcoin's trajectory. | Bitcoin is currently trading at $101,600, up 2% in the past 24 hours, with analysts highlighting that surpassing $109,000 could lead to historic highs. | CFTC Chair Behnam to step down, urges stronger crypto regulation | | Key points: | Rostin Behnam, US CFTC chair, will step down on January 20, emphasizing the need for stronger regulatory oversight of the digital asset space. Brian Quintenz, a16z's head of policy and former CFTC commissioner, is reportedly the top pick for Behnam's replacement, signaling a potential shift in regulatory direction.
| News - Rostin Behnam, chair of the US Commodity Futures Trading Commission (CFTC), is set to step down on January 20, 2025, after a tenure characterized by significant enforcement actions and vocal advocacy for increased crypto regulation. | Behnam oversaw landmark cases, including a $4.3 billion settlement with Binance, and championed regulatory clarity in the burgeoning digital asset market. He has repeatedly expressed concern about the "regulatory gap" in crypto markets, citing the unregulated status of many digital tokens in the United States. | Impact on crypto oversight - Behnam's departure leaves a significant void in the push for clearer crypto regulations. His calls for intentional and disciplined rule-making highlight the pressing need for regulatory bodies to address the growing demands of the digital asset ecosystem. | The upcoming transition also underscores the importance of defining jurisdictional boundaries, particularly between the CFTC and the SEC, to ensure market integrity while fostering innovation. | What's next? - Behnam has called for his successor to bring a "renewed focus" to crypto oversight, ensuring clear boundaries between permissible and impermissible activities. He also stressed the importance of disciplined rule-making driven by legal mandates. | Brian Quintenz, former CFTC commissioner and current head of policy at Andreessen Horowitz's crypto division, has emerged as a leading candidate to replace Behnam. Quintenz's pro-innovation stance could shape the regulatory narrative, addressing jurisdictional clarity issues in the crypto sector. | Ripple and Chainlink partner to boost RLUSD stablecoin adoption in DeFi markets | | Key points: | Ripple has partnered with Chainlink to integrate decentralized price feeds for its RLUSD stablecoin, enhancing its use in DeFi markets on Ethereum and the XRP Ledger. The RLUSD stablecoin, pegged 1:1 to the US dollar, will benefit from tamper-proof, real-time data feeds, supporting cost-effective transactions and DeFi applications.
| News - Ripple announced a strategic partnership with Chainlink on January 7, 2025, to bolster the adoption of its Ripple USD (RLUSD) stablecoin in decentralized finance (DeFi). The collaboration introduces Chainlink's secure and decentralized price feeds for RLUSD, enabling precise real-time transaction data across Ethereum and the XRP Ledger. | Chainlink's decentralized nodes aim to provide tamper-proof, accurate price data, reducing the risk of manipulation and system downtime. According to Colin Cunningham, head of tokenization and alliances at Chainlink Labs, this integration is a significant milestone for the RLUSD ecosystem, signaling trust and innovation in the market. | Impact on DeFi and blockchain finance - The RLUSD stablecoin is pivotal to Ripple's vision of integrating blockchain into mainstream financial systems. Backed 1:1 by the US dollar, RLUSD facilitates borderless payments, lending, and trading while mitigating volatility risks common in cryptocurrency markets. | Chainlink's price feeds will enhance the functionality of RLUSD, ensuring that developers and enterprises can confidently build and execute smart contracts reliant on accurate, real-time market data. Ripple believes this collaboration will accelerate RLUSD adoption in DeFi markets, bridging traditional and blockchain-based financial systems. | What's next for Ripple and Chainlink? - The Ripple-Chainlink partnership follows Chainlink's recent integration with Coinbase's Project Diamond, a platform for tokenized asset management. This broader adoption of Chainlink's Interoperability Protocol suggests increasing institutional reliance on decentralized data networks. | For Ripple, the partnership aligns with its strategy to expand into DeFi markets and establish RLUSD as a key stablecoin in the sector. Ripple and Chainlink's collaboration signals further innovation in DeFi, with RLUSD expected to play a critical role in bridging traditional finance and blockchain technologies. | Ripple's headway into DeFi markets with Chainlink integration underscores its commitment to making stablecoins like RLUSD a cornerstone of blockchain-based financial systems. | | More stories from the crypto ecosystem | | Interesting facts | The first Bitcoin transaction in space occurred in 2020, when SpaceX's Falcon 9 rocket sent a transaction from the International Space Station. This milestone highlighted the growing integration of blockchain and space technologies. In 2021, an NFT of a tweet by Jack Dorsey, the co-founder of Twitter, was sold for $2.9 million, marking a significant moment in the mainstream recognition of NFTs as a medium for trading digital assets and memorabilia. The first cryptocurrency to use a hybrid consensus model combining Proof of Work and Proof of Stake was Peercoin. Launched in 2012, it introduced a more energy-efficient approach to securing blockchain networks, influencing the development of future crypto systems.
| | Top 3 coins of the day | Bitget Token (BGB) | | Key points: | At press time, BGB was trading at $6.60, reflecting a 6.77% increase over the last 24 hours. It was the biggest gainer and one of the top trending cryptocurrencies, showcasing significant bullish momentum according to CoinMarketCap.
| What you should know: | BGB experienced a robust upward movement over the past 24 hours, marking a 6.77% surge in its value. The token displayed notable bullish momentum as reflected by the Awesome Oscillator (AO), which showed consistent green bars signaling strong buying pressure. On the daily chart, the SMA 9 trailed below the price action, further confirming a bullish trend. Trading volumes remained solid, indicating sustained investor interest in the token's ongoing rally. Immediate resistance lies near the $7.00 mark, while support levels are holding steady around $6.10. Should buying pressure continue, BGB might breach higher resistance levels, pushing the price further upward. Conversely, reduced momentum could lead to a period of consolidation or minor pullbacks. | Hedera (HBAR) | | Key points: | At press time, HBAR was trading at $0.32, reflecting a 5.02% increase over the last 24 hours. It was one of the top trending cryptocurrencies, with notable bullish momentum, according to CoinMarketCap.
| What you should know: | HBAR exhibited a steady 5.02% gain over the last 24 hours, signaling renewed interest from investors. The Fibonacci retracement tool indicated that the asset was trading above the 0.786 level ($0.32), a key resistance-turned-support zone. This breakout suggested strong bullish sentiment. The Directional Movement Index (DMI) highlighted a clear trend, with the +DI (green line) surpassing the -DI (red line), accompanied by an ADX reading of 30.65, indicating a robust trend. Additionally, the trading volume reflected healthy market participation, further strengthening the bullish case. Immediate resistance lies at the $0.39 (Fibonacci 1 level), while support can be found near $0.30. If buying momentum continues, HBAR may target new local highs. However, a lack of follow-through could result in consolidation or minor pullbacks to test lower Fibonacci levels, such as $0.27 (0.618 level). | Virtuals Protocol (VIRTUAL) | | Key points: | At press time, VIRTUAL was trading at $3.93, reflecting a 2.71% decline over the last 24 hours. It was one of the biggest losers according to CoinMarketCap.
| What you should know: | VIRTUAL experienced a downward trend, losing 2.71% over the last 24 hours. On the 4-hour chart, the Parabolic SAR signaled a bearish outlook as the dotted markers appeared above the price candles. The Relative Strength Index (RSI) was at 44.16, indicating weakening momentum and leaning toward oversold territory. Trading volume also showed a decline, suggesting reduced investor interest in the short term. If the selling pressure continues, the immediate support level is expected at $3.80. However, if bulls regain control, resistance at $4.20 could be challenged. Investors should monitor the RSI for a potential reversal and watch for changes in volume to assess renewed interest in the token. | How was today's newsletter? | |
|
No comments:
Post a Comment