With Bitcoin and Ethereum stuck in tight ranges for some time, investors are wondering if the two leading cryptocurrencies can break out and make new highs. Despite the recent volatility, there are several bullish indicators that suggest BTC and ETH could be preparing for a significant move.
Let’s examine the key fundamentals of the cryptocurrency market that could impact the overall price action.
Crypto Veteran Analyzes BTC and Crypto Markets: What’s Changed and What to Expect?
After two weeks of silence, a prominent cryptocurrency trader has spoken out, having maintained a bearish stance on Bitcoin throughout its 2023 rally. Known by the alias “Capo,” the trader withdrew from the markets when Bitcoin fell to $40,000 in April 2022.
Since then, he has maintained his belief that the bear market will end with BTC making a new low of $12,000. While Capo acknowledges that Bitcoin’s recent price surge is a significant bear market rally, he admits to being surprised by its magnitude as he did not anticipate such a move.
Capo believes the recent Bitcoin rally is a bear market rally artificially pumped with BUSD and USDC. In his opinion, this is still the biggest bull trap ever and the bearish analysis is not dead yet. Capo expects Bitcoin to make a new low of $12,000.
While he admits he didn’t see this rally coming, he congratulates those who were able to take advantage of the situation, especially as some altcoins saw stronger than expected rallies due to the Al narrative.
Coinbase fined over $3 million by Dutch bank
Dutch bank De Nederlandsche Bank (DNB) has fined Coinbase, a leading US cryptocurrency exchange, over $3 million. According to DNB, Coinbase has been operating without registration since November 2020. Although Coinbase adhered to registration protocols in September 2022, it did not pay any regulatory fees for the two-year period prior to registration.
Under Dutch law, any company offering cryptocurrency services in the country must register with the DNB under the Anti-Money Laundering and Terrorist Financing Act. However, Coinbase disputes the fine, stating that the period in question was the time it took the company to register in the Netherlands and that it was in compliance with the law.
This penalty comes as regulators around the world are tightening their grip on cryptocurrency exchanges, with a focus on improving security and preventing money laundering. The fine imposed on Coinbase is one of the largest regulatory fines imposed on a cryptocurrency exchange.
Ethereum tests 5-month high as whales hoard over 80% of supply
Recent data showed that major ETH holders, including whale and shark addresses, continued to hold on to their ETH holdings. The chart showed that the 100-100k ETH addresses still owned almost 47% of the total ETH supply. Additionally, the absence of a sell-off following the recent rise in price suggested investors were expecting more gains in the future.
In addition, an analysis of the supply of the largest addresses shows that these addresses have accumulated Ethereum.
For most of January, the chart, which depicts the amount held by the largest addresses as a percentage of Ethereum’s total supply, was in an upward trend. Although it has now stabilized, it remained at 123 at the time of writing.
bitcoin price
Bitcoin’s current price is $24,756, with a 24-hour trading volume of $18.7 billion. In the last 24 hours, the price of bitcoin has increased by less than 0.50%. As the top cryptocurrency, Bitcoin has a live market cap of $477 billion, according to CoinMarketCap. It has a circulating stock of 19,295,475 BTC coins and a maximum supply of 21,000,000 BTC coins.
On Sunday, the BTC/USD pair continued to trade sideways, maintaining a tight range between the $24,400 and $25,250 levels. A bullish breakout above the $25,250 level can potentially take BTC price to $26,000 or $26,450.
Bitcoin’s immediate support stands at $24,300 and a break below this level could drop BTC price to $23,750 or $23,300. Further down, an additional break above $23,300 could send BTC towards $22,850.
Bitcoin price chart – Source: Tradingview
Overall, the trading bias is neutral and both the RSI and MACD indicators are signaling indecisiveness among investors. The closing of Doji and spinning top candles on the 4-hour period also spells uncertainty among investors. It is worth keeping an eye on the USD 24,300 level for buying opportunities and vice versa.
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Ethereum price
As of now, Ethereum price is trading at $1,701 with a 24-hour trading volume of $5.3 billion. In the last 24 hours, Ethereum has gained more than 0.10%. Its current market cap is $208 billion and it is ranked #2 on CoinMarketCap.
During the Asian session, the ETH/USD pair is trading sideways and remains in a tight range of $1,670-$1,720. The direction of Ethereum’s trend will depend on whether this range is broken.
Ethereum price chart – Source: Tradingview
On the 4-hour timeframe, Ethereum has formed an upward channel that is keeping ETH price supported near the $1,650 level. If buying pressure increases, ETH could break $1,720 and target the next resistance areas of $1,740 and $1,825.
On the other hand, a break below $1,675 could extend the downtrend towards $1,635 or $1,600.
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Alternatives to Bitcoin and Ethereum
Aside from Bitcoin (BTC) and Ethereum (ETH), the cryptocurrency market is home to several other altcoins that show significant potential. The CryptoNews Industry Talk team did an analysis and compiled a list of the top 15 cryptocurrencies to watch in 2023.
This list is regularly updated with new altcoins and ICO projects, so it’s wise to check regularly for the latest additions.
Disclaimer: The Industry Talk section features insights from crypto industry players and is not part of Cryptonews.com editorial content.
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Cryptocurrency Price Tracker – Source: crypto news
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