Category: Cryptocurrency News

Bitcoin bulls struggle to top their highs from the start of the week, while BTC price forecasts diverge over what could be next.

On-chain data shows the trading volumes of XRP and Polygon have hit monthly highs as investors are displaying FOMO towards the assets. XRP, Polygon See Volume Spike Similar To Bitcoin’s Surge A Few Days Back According to data from the on-chain analytics firm Santiment, XRP & MATIC have seen high volumes recently. The “trading volume” here refers to the total amount of any cryptocurrency that’s being transacted on the different exchanges in the sector every day. When the value of this metric is high, it means that the asset in question is being moved around a lot on the exchanges. Such a trend implies that traders are actively participating in the market right now. On the other hand, low values suggest the interest in the cryptocurrency may be low at the moment as not much trading activity related to it is happening on the platforms. Related Reading: Here’s The Level Bitcoin Must Conquer If Rally Has To Return Now, here is a chart that shows the trend in this indicator for XRP, Polygon, and Bitcoin over the past month or so: Looks like the value of the metric has been quite high in recent days | Source: Santiment on X As displayed in the above graph, the Bitcoin trading volume had become pretty high a few days back when the asset’s price had surged toward the $28,500 mark. This spike in the volume had come with a delay, however, as its peak had occurred after the cryptocurrency had already started on its pullback. This could be a sign that once investors saw the rally, they felt like they had to FOMO in, so they quickly made some trades, but many of these investors had arrived late to the scene, hence why the spike had come later. The volume would have also been fueled by the panic sellers who bought at the top but sold as soon as they saw that the rally was already starting to cool down. During the past couple of days, XRP and Polygon have also seen some recovery surges (although the rises haven’t been anything too impressive) and the trading volume has also shown similar spikes for these cryptocurrencies as well. At the peak of this latest surge, the volume of these cryptocurrencies had managed to hit its highest level in about a month. “FOMO is high right now,” notes Santiment. Related Reading: These Are The Altcoins To Keep An Eye On: Santiment It would appear that just like with BTC, investors had started jumping on these cryptocurrencies once they saw the rally. Those falling for FOMO, however, would have once again faced disappointment, as both XRP and MATIC have already retraced their latest recovery attempts. If the trading volume continues to stay high even after the pullback, though, then it would be a positive sign for the prices of these altcoins, as it would mean that there is still significant demand for them at these lower price levels. XRP Price In its latest recovery rally, XRP had managed to rise near the $0.55 mark, but with the pullback since then, the cryptocurrency has dropped toward the $0.52 level. XRP has declined since its rise two days ago | Source: XRPUSD on TradingView Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Santiment.net

Macro factors will play a dominant role in sparking the next crypto bull market, which should start in Q2 2024, according to Raoul Pal.

Adam Yedidia, a former developer at FTX, testified regarding his knowledge of the crypto exchange’s use of funds, claiming “Alameda had used customer deposits to pay its loans”.

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Venture capitalists are doing fewer deals and the average deal size is getting much smaller, according to researchers.

In a recent post, investor Chris Burniske expressed the belief that a bottom is looming for the top cryptocurrencies. Burniske predicts that Bitcoin and Ethereum could dip as low as $20,000 and $1,000, respectively, with top altcoins, except Solana (SOL), hitting new lows. Notably, BTC retraced from $28,000 to slightly above $27,600, with ETH seeing a similar decline in the past few days.  Crypto Analysts Predicts Market Bottom Ahead Of Bull Run According to the founder of Placeholder Capital, Chris Burniske, a bull market will likely begin soon. However, the analyst believes the upcoming bull run will be preceded by a bottom cycle in the present financial quarter (Q4 2023). Furthermore, Burniske believes that this bottom will lead to declining crypto prices.  According to his analysis, fear is high but only temporarily, as sellers are exhausted. Burniske believes the predicted lows for the top cryptocurrencies will present attractive buying opportunities in preparation for the upcoming bull market. Fear is high, but temporally and price-wise, selling exhaustion is near imo. Sure $BTC could go to low $20Ks & $ETH to low $1Ks & most everything long-tail (except $SOL) can hit new lows, but when we look back on Q4 2023 & Q1 2024 it’ll be clear it was a good time to be a buyer. https://t.co/I6hpKCw1Q8 — Chris Burniske (@cburniske) October 4, 2023 The crypto analyst supported his predictions with Linear charts, stating that it is easy to spot tops and bottoms with such charts. For context, Linear charts show the change in the price of an asset. Burniske believes it is up to traders to choose their accumulation style with patience and persistence.  What Lies Ahead For Bitcoin And Ethereum? Bitcoin trades at $27,697, with a 0.56% price increase in the last 24 hours. Ethereum’s, on the other hand, is $1,639, with a 0.45% 24-hour decline. Meanwhile, BTC has encountered stiff resistance at $28,000, leading to a decline to $27,000 in the last few days. The asset formed a bottom on the daily chart on September 11 before the buyers forced a price recovery.  Although BTC recovered slightly, the sellers have continued to re-enforce the $28,000 resistance. If the selling pressure increases, a decline to the $25,141 support level is possible in the coming days.  Moreover, the green MACD Histogram bars have faded, confirming a drop in buying pressure as sellers reclaim dominion. Also, the RSI is dropping from the buy zone and displays a value of 61.54.  If the RSI drops below 50, BTC may resume the downtrend in the coming days. If Bitcoin drops further, a bottom cycle will likely begin in the crypto market.  The potential decline to the $25,142 support level could facilitate a bull cycle. The reason is that it presents an attractive entry level for the accumulation phase.  Ethereum To Follow Similar Trend As Bitcoin Also, ETH displays a similar price trend to Bitcoin, with a prominent dip likely to occur in the coming weeks. ETH is in a downtrend on the daily chart, forming lower lows as sellers continue to dominate the market.  Based on its historical data, it formed a bottom on September 11, after a similar decline before rallying on September 12. Therefore, ETH will likely return to the $1551 support level to form a double-bottom pattern before another rally.  Also, its Moving Average Convergence/Divergence (MACD) shows a weak buy signal with fading bullish histogram bars. Additionally, the Relative Strength Index (RSI) indicator displays a value of 49 and will likely drop to the oversold region.  Based on ETH’s past price action, traders should expect further decline in the coming weeks before a recovery. Featured image from Pixabay and chart from TradingView.com

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