Overall Crypto Markets
Bitcoin mining difficulty reached an all-time high, rising by 3.4%, indicating the growing competitiveness in mining Bitcoin and potentially reducing mining profitability for individual miners. Tether, the company behind the widely used USDT stablecoin, has achieved a significant milestone by surpassing its previous all-time high market capitalization of $83.2 billion. This accomplishment not only underscores the growing demand for stablecoins but also solidifies Tether’s position as a leading player in the crypto industry.
In a positive development, China recently released a Web3 whitepaper that signals optimism across the crypto sector. The whitepaper outlines key research areas within the Web3 industry, including artificial intelligence (AI). To support this vision, the Chinese government has committed to allocating a minimum of 100 million yuan ($14 million) annually until 2025.
Crypto Market Overview
Bitcoin price stuck between 3% range
At the start of the week, Bitcoin broke upwards towards $28,450 but later in the week it dipped for $26,860. With the price dipping below the $27,000 mark, market sentiment has shifted, and attention now focuses on a critical support level at $26,600. On-chain data reveals an interesting trend as smaller Bitcoin investors, known as “shrimps”, with wallet balances of less than 1 BTC have aggressively accumulated the largest crypto. Over the past month alone, the supply held by shrimps has risen by 24,600 BTC, reaching an all-time high of 1.31 million BTC. This data suggests that despite the current selling pressure, smaller investors are confident in Bitcoin’s long-term potential.
Bitcoin: Technical Analysis
Source: Tradingview
After experiencing a rally reaching $28,400 earlier this week, BTC has returned to a trading range of $26,600 to $27,400. This range, which has been consistently traded for the past 10 periods, holds great significance as a critical support level to prevent a drop below $26,000. If sellers become exhausted within this range, it would greatly benefit the buyers. Breaking through this range and an upward sloping resistance (purple line) would result in BTC attempting to reach the $29,000-$29,500 ranges once again. It is crucial to carefully observe the price action during this period of market uncertainty.
Ethereum: Technical Analysis
Source: Tradingview
ETH is demonstrating greater resilience and strength in the market when compared to BTC. A significant resistance level is currently present at the $1920-1930 range, and ETH has been making efforts to surpass it once again. However, the momentum appears to be diminishing. The formation of a double-top pattern at $1920 and a potential retest towards $1810 are expected price actions for the upcoming week. These developments need to occur before any potential demand from the bulls can be observed.
Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The Content is for informational and educational purposes only. The Content is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or securities or virtual digital assets or to participate in any investment or trading strategy.The Content or any part of it is not legal, financial, investment or tax advice. The calculations, data, risk return formulations, performance or market capitalization indicators are based on the independent data sourced by CoinDCX or third parties. Past performance is not indicative of any future results.
