The cryptocurrency market is experiencing a slight dip, falling by 1.4% in the past 24 hours to settle at $3.29 trillion. Over the last 10 days, the market has been fluctuating within a narrow range of $3.3-3.4 trillion, mirroring levels seen in late November when traders faced a shakeout. Now, the market seems to be at a critical point, with several coins showing mixed signals.
Bitcoin Faces Key Levels
Bitcoin, the market leader, has dropped to $93.5k, slipping below its 50-day moving average. This retracement brings it to the 61.8% Fibonacci level, a key point from its early November rally to the mid-December peak.
If Bitcoin fails to hold above $93k, it could signal a deeper correction, potentially wiping out gains from the November-December rally. All eyes are on the next few days to determine whether BTC will bounce or slide further.
Ethereum Defies the Trend
While the broader market struggles, Ethereum has shown resilience, gaining 0.6% in the last 24 hours. Buyers have been stepping in as the price dips near $3,300, helping form an upward trend. This consistent interest could position Ethereum as a standout performer amid the current volatility.
ETF Flows Signal Mixed Sentiment
- Bitcoin ETFs: Net outflows totaled $387.5 million for the week, marking the largest outflow since early September. This breaks a three-week streak of inflows, with cumulative inflows since January reaching $35.66 billion.
- Ethereum ETFs: On the other hand, Ethereum ETFs saw weekly inflows of $349.2 million, continuing a positive streak for the fifth week in a row. Cumulative inflows since their launch in July now stand at $2.68 billion.
Noteworthy Developments
- Strive Asset Management has filed to launch a bond ETF focused on Bitcoin strategy companies, such as MicroStrategy. The firm, founded by Vivek Ramaswamy, plans to collaborate with Elon Musk under the Trump administration, adding a new layer of interest to the crypto space.
- Market Predictions:
- Ki Young Ju (CryptoQuant CEO): Believes Bitcoin’s bearish trend hasn’t fully formed and expects the price to rise by more than 30% soon.
- IT Tech (CryptoQuant Contributor): Warns of increased selling pressure and heightened volatility, citing a recent spike in centralized exchange reserves by 20,000 BTC.
What’s Next?
With the market at a crossroads, Bitcoin’s performance at the $93k level will be pivotal. Ethereum’s resilience offers a bright spot, but broader selling pressure may lead to increased volatility in the coming days. For now, traders are advised to stay cautious and watch for key technical and market signals as the crypto landscape evolves.
