Market
Analyst Predicts Blow-Off Top Ahead
Market analyst and trader Henrik Zerberg predicts a blow-off top in US markets for cryptocurrency and stock sectors. This prediction comes after the market-wide crash on Monday, which saw over $1 billion in crypto positions liquidated.
The crypto industry is recording a shift in sentiment, with Bitcoin up 8%, holding well above $55,000, and dragging altcoins along with it.
Blow Off Top To Come In Crypto and Stock Markets
Zerberg anticipates new all-time highs (ATHs) in the US stock market as well as crypto. He says the current bearish sentiment will transform into a strong bullish sentiment and euphoria, leading to a blow-off top.
“As we in the coming few months reach ATHs in the US stock market and in BTC+ Crypto, the current Bearish sentiment will develop into strong Bullish sentiment and euphoria – and the markets will soar! I will be told that I am wrong about my forecast of a coming top in US markets. But Recession is coming and the largest bear market since 1929 will begin. First, blow-off top (in US markets!),” Zerberg wrote.
In crypto jargon, a blow-off top is a trading term that describes a chart pattern showing a steep and rapid increase in Bitcoin price and trading volume. After that, a steep and rapid drop in price happens, accompanied by high volume. Analysts interpret the rapid changes to mean the market was way overbought.
Read more: 5 Best Platforms To Buy Bitcoin Mining Stocks After 2024 Halving
Zerberg’s forecast comes after panic selling on Monday turned into impulse buying. Nevertheless, Jack Mallers, a popular market analyst, ascribes the sell-off to the unique availability of open Bitcoin markets as the crisis intensified.
“In crises, markets sell what they can, not what they want. Bitcoin is down because it was the only market open to sell on Sunday night, not because the only fixed supply of money we have is now less valuable. Bitcoin isn’t hedging the broken financial system, it’s replacing it,” Mallers explained.
At the height of the crisis, liquidity was needed, and it could only come from one place on a Sunday night. Accordingly, Bitcoin’s liquidity positioned it for losses, as investors had a gateway to exit the market. This explanation highlights Bitcoin’s role in fixing the financial system.
“Liquid assets always be liquidated first in liquidity crises. Bitcoin is insanely liquid…try and sell $275k of gold at 11:27 pm on a Sunday,” Adam, a Bitcoin mining infrastructure developer, said.
As BeInCrypto reported, markets are already recovery mode after ETF (exchange-traded funds) investors reportedly seized the opportunity to buy the dip.
ETF Investors, Whales Buy The Dip After Marketwide Jitters
On Tuesday, analyst James Seyffart observed, “ETF investors, in aggregate, likely bought the dip on Ethereum today.” Indeed, data shows that ETH ETFs recorded up to $48.73 million in net inflows on Monday, effectively beating Bitcoin ETFs, which saw $168.44 million in net outflows.
Bitwise CIO Matt Hougan reported positive inflows into the firm’s ETF instruments, IBIT for Bitcoin and ETHW, acknowledging that ETF investors bought the dip.
“We had net inflows into both our Bitcoin and Ethereum ETFs today. ETF investors buying the dip,” Hougan wrote.
Read more: How to Invest in Ethereum ETFs?
Notably, Bitcoin ETFs witnessed some of the most substantial trading volumes on August 5 within minutes of the US session opening. BlackRock’s iShares ETF IBIT, in particular, surpassed $1.55 billion in trading volume in Monday’s first hour of trading. ETF analyst Eric Balchunas said this was concerning.
“Bitcoin ETFs have traded about $2.5b so far, a lot for 10:45 am, but not too crazy (full history below). If you are a Bitcoin bull you do not want to see crazy volume today, as ETF volume on bad days is a pretty reliable measure of fear. On the flip, deep liquidity on bad days is part of what traders and institutions love about ETFs. You also want to see volume too, good for the long term,” Balchunas commented.
Alongside ETF investors, whales are also scooping Bitcoin at a discount. According to a press release shared on Monday, healthcare company Semler Scientific acquired 101 BTC tokens. The company recently adopted a Bitcoin treasury, with the latest buy bringing its total holdings to 929 BTC.
The firm started buying Bitcoin in late May, acquiring 581 BTC for around $40 million. It made two more Bitcoin investments in June, effectively emulating the precedent set by Michael Saylor’s MicroStrategy. So far, the company has spent $63 million in Bitcoin purchases, steadily integrating Bitcoin into its treasury operations.
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Market
XRP Price Ready to Rally? Signs Point to a Bullish Move
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Market
Solana (SOL) Rallies Strongly, Setting Sights on $200
Solana started a fresh increase above the $172 support zone. SOL price is rising and might soon aim for a move toward the $200 level.
- SOL price started a fresh increase after it settled above the $165 level against the US Dollar.
- The price is now trading above $172 and the 100-hourly simple moving average.
- There was a break above a key bearish trend line with resistance at $162 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could continue to rise if it clears the $192 resistance zone.
Solana Price Starts Fresh Rally
Solana price formed a support base and started a fresh increase above the $162 level like Bitcoin and Ethereum. There was a strong move above the $165 and $172 resistance levels.
There was a break above a key bearish trend line with resistance at $162 on the hourly chart of the SOL/USD pair. The price even cleared the $185 level. A high is formed at $192 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the $155 swing low to the $192 high.
Solana is now trading above $172 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $192 level. The next major resistance is near the $195 level.
The main resistance could be $200. A successful close above the $200 resistance level could set the pace for another steady increase. The next key resistance is $212. Any more gains might send the price toward the $220 level.
Another Dip in SOL?
If SOL fails to rise above the $192 resistance, it could start a downside correction. Initial support on the downside is near the $188 level. The first major support is near the $180 level.
A break below the $180 level might send the price toward the $172 zone or the 50% Fib retracement level of the upward move from the $155 swing low to the $192 high. If there is a close below the $172 support, the price could decline toward the $165 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is gaining pace in the bullish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major Support Levels – $188 and $185.
Major Resistance Levels – $192 and $200.
Market
Will Bulls Push It Higher?
Ethereum price started a fresh surge above the $2,650 resistance. ETH is up over 10% and might aim for a move above the $2,850 resistance.
- Ethereum started a fresh surge above the $2,650 resistance zone.
- The price is trading above $2,700 and the 100-hourly Simple Moving Average.
- There is a new connecting bullish trend line forming with support at $2,730 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could continue to rise if it settles above $2,850 and $2,880.
Ethereum Price Extends Surge
Ethereum price started a fresh increase above the $2,550 resistance like Bitcoin. ETH was able to climb above the $2,550 and $2,650 resistance levels to move into a positive zone.
It even surged above the $2,720 level in the past few sessions, beating BTC. It is up over 10% and there was a move above $2,800. A high is formed at $2,848 and the price is showing signs of more upsides. It is holding gains above the 23.6% Fib retracement level of the upward move from the $2,357 swing low to the $2,848 high.
Ethereum price is now trading above $2,700 and the 100-hourly Simple Moving Average. There is also a new connecting bullish trend line forming with support at $2,730 on the hourly chart of ETH/USD.
On the upside, the price seems to be facing hurdles near the $2,850 level. The first major resistance is near the $2,880 level. The main resistance is now forming near $2,950. A clear move above the $2,950 resistance might send the price toward the $3,000 resistance.
An upside break above the $3,000 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,250 resistance zone.
Are Dips Supported In ETH?
If Ethereum fails to clear the $2,850 resistance, it could start a downside correction. Initial support on the downside is near the $2,800 level. The first major support sits near the $2,720 zone and the trend line.
A clear move below the $2,720 support might push the price toward $2,650. Any more losses might send the price toward the $2,550 support level in the near term. The next key support sits at $2,500.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $2,850
Major Resistance Level – $2,720
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