Most cryptocurrencies have been on the decline for the past seven days. Relief is in sight, and they see a notable recovery. However, several fundamental factors cause the current downtrend.
One such is from Mt. Gox. It recently transferred over $2 billion bitcoin from one wallet to another. Traders started panicking as many anticipated that the defunct exchange is planning to dump its bag in anticipation of settling creditors.
The German government continues to dump its Bitcoin bag. It has sold over 50% of its holding in the last thirty days. Nonetheless, it ramped up its pace, selling over 10,000 in the last seven days.
Amidst the selloffs, the long-awaited Ethereum ETF is set to hit the market this week.
Top Five Cryptocurrencies
Bitcoin
Currently, Bitcoin is experiencing modest gains with an attempted push past the $58,000 mark, although it has not managed to stabilize above this level and has retraced. Despite this, efforts to reach $58,000 are ongoing.
Market panic has notably decreased, leading to positive shifts in certain on-chain data. For instance, there has been a more than 2% decrease in exchange reserves, indicating a decrease in supply as buyers absorb the excess available supply. Although there was a 0.24% increase in this metric in the last 24 hours, buyers are making significant headway.
Germany, the largest seller, has sold over 50% of its holdings in the past fourteen days. As its holdings decrease, selling pressure may diminish.
The moving average convergence divergence is responding to the increased buying activity of the coin. After being below 0 for several days, the metric is now showing positive signs. Additionally, the 12-day EMA has halted its downward trend and may begin an upward trend if market conditions remain stable.
The potential upward trend of the 12-day EMA could signal bullish momentum and may indicate further price increases.
In the upcoming days, it is anticipated that Bitcoin will surpass $58,000 and potentially test $60,000. However, it is likely that consolidation below the highlighted resistance level will persist over the next 24 hours before any breakout occurs.
Ethereum
Over the past four days, Ethereum has been trading within a range defined by the first and second pivot support levels. If it closes around $3,000, it will add to this pattern, with the $3,200 mark being a critical level to watch.
However, there are concerns about the asset retracing, which could lead to another test of the S2 support at $2,800. The support has held up following two previous attempts in the last four days.
Ethereum retraced from its high of $3,095, creating a wick, and the current movement is filling this wick, potentially indicating a continuation of the gains. Despite this, ETH has struggled to stabilize above $3,100 and may not see significant gains upon closing.
The news of an Ethereum ETF hitting the market is seen as positive and is expected to impact prices. Traders are anticipating a potential surge that could break the coin from its current horizontal trend.
According to the Fibonacci retracement, a close above $3,000 could provide the necessary relief for the S2 support. Currently trading at $3,062, the coin is above the 50% Fibonacci level, which is considered a strong point by many. The next level indicated by the metric is the 38% level at $3,179, with the expectation that Ethereum will surpass this level before the week ends.