Bitcoin Approaches Risky Territory As Halving Event Draws Near
The price of Bitcoin has been on a downward trend since it reached a new all-time of $ 73,000, ushering in a wave of speculations regarding the crypto asset’s next direction in the short term.
In the past few days, Bitcoin’s recent dip has triggered a general crypto market retracement. With the Bitcoin Halving event fast approaching, many crypto analysts are anticipating a further decline in BTC’s price in the near future.
Bitcoin Poised For “Danger Zone” Ahead Of Halving Event
Popular cryptocurrency trader and analyst Rekt Capital has shared a gloomy prediction for Bitcoin with the crypto community on the social media platform X. His forecast examines BTC’s potential to drop even further prior to the halving event while noting the entrance to a risky area he dubbed the “Danger Zone.”
The analyst’s forecast came in light of BTC experiencing a notable decline in the past few days. According to the expert, two days from now, Bitcoin will formally venture into the danger Zone (orange).
This is the starting area of past retracements seen ahead of the BTC Halving, which is expected to take place in April. Prior to the halving, these retracements have constantly indicated intervals of substantial market corrections for the digital asset.
Rekt Capital further pointed out that the pre-halving retracements have historically been observed in BTC 14-28 days before the event. Bitcoin’s price witnessed a pullback of about 40% in advance of the 2016 halving occurrence.
Meanwhile, in 2020, the crypto asset fell by over 40% before the occasion. Presently, we are less than 30 days before this year’s BTC halving takes place; however, the price of the coin has declined by over 11% in the past week, suggesting further correction in the coming weeks.
The post read:
In 2 days, Bitcoin will officially enter the “Danger Zone” (orange) where historical Pre-Halving Retraces have begun. Historically, Bitcoin has performed Pre-Halving Retraces 14-28 days before the Halving. In 2020, this retrace was -20% deep, and in 2016, this retrace was -40% deep. Currently, BTC is 30 days away from the Halving and has pulled back -11% this week.
It is noteworthy that the crypto analyst had previously pinpointed the timeframe BTC is expected to top out in this bull cycle. Rekt Capital believes the asset will peak within 280-350 days. Specifically, this could occur around mid-December this year, or in mid-February of next year.
4 Distinct Halving Phases
So far, the crypto analyst has highlighted several different phases for the upcoming Bitcoin Halving; these include the Pre-Halving Rally, Final Pre-Halving Retrace, Re-accumulation, and Parabolic uptrend.
According to Rekt Capital, there usually is a pre-halving rally approximately 60 days before the event takes place. For the final pre-halving retrace, it usually develops around 14 to 28 days ahead.
Furthermore, after the Pre-Halving pullback, a multi-month re-accumulation period follows. Lastly, the parabolic uptrend begins once Bitcoin exits the area of re-accumulation.
Introducing Book Of Meme (BOME), The Latest $1 Billion Crypto Sensation
Memecoin project Book of Meme (BOME) has emerged as the latest shining star in the crypto market over the last few days. Following its official launch this week, BOME has attracted much investor interest, acquiring a market cap of $ 1 billion within 48 hours of trading.
BOME’s sudden emergence can be regarded as a silver lining in the crypto space in the last week amidst Bitcoin’s 4% decline, which resulted in the maiden cryptocurrency falling to around $ 65,345.14. Meanwhile, Ethereum is also down by 10%, while prominent memecoins Dogecoin and Shiba Inu also recorded losses to the tune of 24.23% and 16.69% over the last seven days.
What Is The Book Of Meme?
The Book of Meme was founded by DarkFarms, the creator of another popular memecoin Pepecoin. BOME functions as an experimental project aimed at incorporating memes, decentralized storage solutions, degen shitcoin trading, and gambling on a single platform in a bid to create a novel web3 experience.
Following a successful presale that raised 10,131 SOL, BOME debuted in the crypto market on March 14 with an initial price of $ 0.0000496. Over the next two days, Book of Meme swiftly rose to a price region of $ 0.012 while achieving a market cap value of $ 1 billion.
Due to the sudden listing by Binance, MEMECOIN BOME rose sharply by 243% in 24h, but other MEMECOINs generally fell sharply, PEPE WIF FLOKI BONK fell by more than 10%. The current market value of BOME has exceeded US$ 1.38 billion, ranking seventh in MEMECOIN in terms of market…
— Wu Blockchain (@WuBlockchain) March 16, 2024
Unsurprisingly, BOME’s expeditious rise has earned the coin listings on major crypto platforms, including KuCoin, Gate.io, MEXC, HTX, Crypto.com and Binance. In particular, BOME’s listing on Binance on March 16 is believed to have spurred the token to a 243% price gain within a day, allowing the memecoin to gain a peak market cap of $ 1.55 billion.
In a similar fashion with other highly successful memecoins, some investors have benefitted the most from BOME’s rise. Data from LookonChain reveals that a certain investor already sold all 347 million BOME for 34,647 SOL valued at $ 6.58 million, recording a 340x gain on 102 ($ 19,000) investment at the presale. Meanwhile, the largest BOME holding personal address known as sundayfunday.sol currently holds 1.242 billion BOME, valued at $ 29.8 million.
BOME Price Overview
At the time of writing, Book of Meme currently trades at $ 0.02139 with a 58.08% gain on the last day. Meanwhile, the coin’s daily trading volume is up by 125.05% and is valued at $ 5.18 billion. BOME’s current market cap stands at $ 1.18 billion, allowing the memecoin to rank as the 85th largest cryptocurrency.
Euphoria Or False Dawn? Why The Ethereum $4,000 Party Might End Soon
Amidst the tumultuous seas of the crypto market, Ethereum (ETH) finds itself navigating through waves of uncertainty after a period of bullish fervor. Investors who once rode high on the tide of optimism now brace themselves for potential stormy weather ahead.
The Bearish Shadow Looms
The once bright horizon for Ethereum has dimmed as indicators point towards a shift in sentiment. A surge in interest in put options hints at growing apprehension among traders, seeking refuge from potential losses in speculative ventures.
The rise in demand for these protective measures serves as a cautionary tale, signaling a departure from the exuberance that once characterized the Ethereum landscape.
Ethereum’s Dencun Upgrade
As the Ethereum community anticipates the much-awaited Dencun upgrade, optimism clashes with apprehension. Scheduled to deploy on the Ethereum mainnet, the upgrade promises to usher in a new era with EIP-4844, colloquially known as “protodanksharding,” poised to lower transaction costs on Layer 2.
While this advancement holds promise, echoes of past disappointments linger, reminding investors of the unpredictability that accompanies major network upgrades.
Influx of Capital Amidst Uncertainty
Despite the looming shadows of uncertainty, the crypto market witnesses a significant influx of capital, with Bitcoin and Ethereum commanding the lion’s share of the pie.
An infusion of approximately $ 83 billion into the market underscores the enduring allure of cryptocurrencies, even in times of ambiguity. Yet, amidst the influx, Ethereum’s fate hangs in the balance, teetering between the forces of optimism and apprehension.
The Ethereum ETF Conundrum
Now, the looming specter of Ethereum ETF approval casts a shadow over the market, with odds dwindling according to Bloomberg ETF analysts. Despite waning prospects, the prospect of an ETF remains a beacon of hope for Ethereum enthusiasts, promising increased adoption and legitimacy.
Yet, as the odds fluctuate, uncertainty pervades, leaving investors on edge, unsure of what the future holds.
Analyst’s Insight
In the midst of uncertainty, popular crypto analyst Ali Martinez offers insights into the shifting currents of the market. Martinez reveals a massive influx of roughly $ 83 billion, with Bitcoin and Ethereum accounting for $ 75 billion of the total money inflow, according to Glassnode.
Current Market Snapshot
Ethereum’s price charts reflect the ebb and flow of market sentiment. With a 2% increase in the past 24 hours, stands at $ 3,966, a testament to the resilience of the cryptocurrency amidst turbulent times.
Yet, fluctuations persist, with trading volume surging by 20% in the last 24 hours, underscoring the volatility that defines the crypto market.
Meanwhile, new addresses were still becoming interested in Ether. Alongside that, the overall count of holders who were amassing ETH had also increased, as shown in the chart above.
Featured image from Polina Tankilevitch/Pexels, chart from TradingView
Bitcoin ETFs See Record $1 Billion Inflows, Pushing Price Over $73,500
Yesterday, the Bitcoin price journey resembled a high-intensity rollercoaster ride, initially soaring past the $ 73,000 mark before encountering a tumultuous liquidation event. This event saw over $ 361 million worth of leveraged trades unwound, compelling the BTC price to retract sharply to below $ 68,300.
The drastic price fluctuation primarily affected long position holders—investors who speculated on a continued price rise—with a staggering $ 258 million wiped out. Subsequently, Bitcoin’s price staged a remarkable V-shaped recovery, during which short sellers found themselves on the losing end, with just over $ 103 million in positions liquidated.
This data by Coinglass marks the event as the most significant purge of long positions since March 5. At that time, Bitcoin experienced a decline to $ 60,800 following its climb to a then all-time high of approximately $ 69,000.
Bitcoin ETFs Register Record $ 1 Billion Inflows
Perhaps spurred by the opportunity presented by the price dip, investors in spot Bitcoin Exchange-Traded Funds (ETFs) engaged in a buying spree, unprecedented in its intensity. For the first time, spot Bitcoin ETFs witnessed a daily inflow surpassing $ 1 billion on Tuesday, March 12, primarily driven by an inflow of $ 849 million to BlackRock’s IBIT. According to detailed data released by Farside Investors, the total net inflows across all Bitcoin ETFs were at $ 1045 million (or $ 1.045 billion).
The second largest Bitcoin ETF to date, Fidelity, saw a rather quiet day with FBTC taking in only $ 51.6 million, while Ark Invest ($ 93 million), Bitwise ($ 24.6 million), Valkyrie ($ 39.6 million) and VanEck ($ 82.9 million) saw relatively strong capital inflows. Notably, Grayscale‘s GBTC saw a waning outflow of just $ 79 million.
Bitcoin analyst Alessandro Ottaviani shared his insights on X, underscoring the magnitude of these inflows, “1 Billy of Total net Inflow! ONE BILLION DOLLARS! […] In the last twelve trading days, The Nine inflow has been $ 9.2b, with an average of $ 768m per day. Just imagine if we keep this pace and it is confirmed that GBCT outflow is almost exhausted.”
Crypto Quant analyst Maartunn provided additional context to the inflow’s impact, revealing, “JUST IN: The Bitcoin Exchange-Traded Fund (ETF) has experienced its highest inflows ever, with an additional 14,706.2 BTC.” This statement further emphasizes the substantial increase in Bitcoin’s demand, potentially setting it up for a major supply squeeze.
JUST IN: The Bitcoin Exchange-Traded Fund (ETF) has experienced its highest inflows ever, with an additional 14,706.2 BTC. https://t.co/xg7wADbRzy pic.twitter.com/IUAyt1jzGE
— Maartunn (@JA_Maartun) March 13, 2024
Adding to the conversation, crypto analyst @venturefounder suggested potential future price movements based on the current trend, “Absolute Bitcoin madness […] The 5-day moving average net inflow has fully recovered to peak. So… probably HIGHER. If this continues, $ 80-90k by the end of month is not far fetched. No correction has lasted longer than 24 hours on the weekdays. Interestingly, the first major correction of the 2021 cycle came when price went 2x previous ATH. So could we see no major correction until $ 120k?”
At press time, BTC already surpassed the $ 73,500 mark and traded at $ 73,392.
Bitcoin Fee Shock: Network Charges Double Amidst Excitement Of $70,000 BTC
Bitcoin transaction fees have experienced an unprecedented surge, doubling in just one week, as the market rallies towards the coveted $ 70,000 mark. This surge cannot be solely attributed to the upward trajectory of Bitcoin’s price but is significantly influenced by the sudden rise in Ordinals transactions.
Ordinals: A Driving Force Behind Fee Escalation
Amidst the fervor of Bitcoin’s price rally, Ordinals transactions have emerged as a driving force behind the surge in transaction fees. Our in-depth analysis reveals that Ordinals, which started the week with approximately 48,000 daily inscriptions, witnessed an extraordinary surge, surpassing 93,000 by March 8th.
This surge in daily inscriptions has not only contributed to a substantial increase in fees, with the daily average fee standing at around eight BTC but has also added a staggering $ 3.8 million to the total network fees for the week.
Bitcoin Fees Break Records, Reflecting Market Dynamism
Bitcoin’s fee trend for the week has been nothing short of dynamic. While the initial daily fees stood at around 46 BTC, the momentum gained pace around March 5th, surging to an impressive 103 BTC. Towards the end of the week, the daily fee decreased slightly to around 40.7 BTC.
Despite the decline, the overall trend indicates a significant increase in daily fees compared to the preceding week, showcasing the dynamism and resilience of the Bitcoin market.
Bitcoin’s Ascent Towards $ 70K And Its Ripple Effect
As Bitcoin teeters on the edge of the $ 70,000 price range, the cryptocurrency market is on the brink of a potential breakthrough. At the time of reporting, Bitcoin was trading at about $ 68,950, marking a 10% increase in the last seven days.
A Closer Look At Bitcoin’s Fee Surge
Examining data provided by IntoTheBlock, it becomes evident that Bitcoin’s recent fee surge is not merely a consequence of its price rise. The notable increase in transaction fees, doubling compared to the previous week, is closely tied to the upward movement in the price of BTC.
Bitcoin fees more than doubled this week, with Ordinals-related transactions hitting a monthly high. pic.twitter.com/YXh9oMMYSK
— IntoTheBlock (@intotheblock) March 9, 2024
This movement has propelled transaction volumes to their highest levels in months, with NewsBTC’s analysis revealing a staggering volume surpassing $ 100 billion on March 5th and 6th, a level not witnessed since November 2022.
Ordinals’ Remarkable Contribution To Bitcoin Fees
NewsBTC’s detailed evaluation of Ordinals transactions over the past week sheds light on the remarkable contribution of this sector to Bitcoin’s escalating fees. With daily inscriptions skyrocketing and daily fees averaging around eight BTC, Ordinals has made a significant impact on the cryptocurrency landscape, contributing over $ 430 million in fees to date.
Featured image from Karolina Grabowska/Pexels, chart from TradingView
DOT Price (Polkadot) Jumps 10%, Why Bulls Can Pump It To $12
Polkadot (DOT) is gaining pace above the $ 10.00 resistance against the US Dollar. The price could extend its rally toward the $ 12.00 level in the near term.
- DOT is gaining pace above the $ 9.80 and $ 10.00 levels against the US Dollar.
- The price is trading above the $ 10.00 zone and the 100 simple moving average (4 hours).
- There is a key bullish trend line forming with support at $ 9.10 on the 4-hour chart of the DOT/USD pair (data source from Kraken).
- The pair could continue to rise toward the $ 12 resistance zone.
Polkadot Price Resumes Rally
After forming a base above the $ 8.00 level, DOT price started a fresh rally. It gained over 20% in a few days and even outperformed Ethereum and Bitcoin at times.
There was a clear move above the $ 9.50 and $ 10.00 resistance levels. The price traded to a new multi-month high at $ 11.00 and is currently consolidating gains. There was a minor pullback below the $ 10.75 level. The price is still above the 23.6% Fib retracement level of the upward move from the $ 8.26 swing low to the $ 11.00 high.
DOT is now trading well above the $ 10.00 zone and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support at $ 9.10 on the 4-hour chart of the DOT/USD pair. The trend line is close to the 61.8% Fib retracement level of the upward move from the $ 8.26 swing low to the $ 11.00 high.
Source: DOTUSD on TradingView.com
Immediate resistance is near the $ 10.75 level. The next major resistance is near $ 11.00. A successful break above $ 11.00 could start another strong rally. In the stated case, the price could easily rally toward $ 12.00 in the near term. The next major resistance is seen near the $ 13.50 zone.
Are Dips Supported in DOT?
If DOT price fails to start a fresh increase above $ 11.00, it could start a downside correction. The first key support is near the $ 10.35 level.
The next major support is near the $ 10.00 level, below which the price might decline to $ 9.50. Any more losses may perhaps open the doors for a move toward the $ 9.20 support zone or the trend line.
Technical Indicators
4-Hours MACD – The MACD for DOT/USD is now gaining momentum in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for DOT/USD is now above the 50 level.
Major Support Levels – $ 10.35, $ 10.00 and $ 9.50.
Major Resistance Levels – $ 10.75, $ 11.00, and $ 12.00.
JPMorgan Analysts Predict Bitcoin Crash To $42,000 Post-Halving – What You Need To Know
Bitcoin, the world’s largest cryptocurrency, faces a potential downturn in its price following the anticipated halving event scheduled for April, according to analysts at JPMorgan led by Nikolaos Panigirtzoglou.
This event occurs approximately every four years and is expected to slash miner rewards from 6.25 BTC per block to 3.125 BTC. As a result, JPMorgan analysts have warned that the Bitcoin price could drop toward $ 42,000 post-halving.
Reason Behind The Potential Crash To $ 42,000
The analysts attribute this potential decline to the reduced profitability for miners and the subsequent increase in BTC production costs. The analysts disclosed that the Bitcoin production cost has historically served as a “lower bound” for its prices, with the estimated range doubling post-halving to around $ 53,000.
Nonetheless, a potential 20% reduction in the BTC network’s hashrate looms is primarily attributed to the departure of less efficient mining rigs from the operational landscape.
Consequently, this scenario may drive the estimated production cost range to $ 42,000, calculated under an average electricity cost of $ 0.05 per kilowatt-hour (kWh).
According to the analyst, Bitcoin miners with “below-average electricity costs” and “more efficient equipment” are expected to fare better following the halving event. In contrast, those with “higher production costs” may struggle to remain profitable.
Consequently, analysts anticipate an increased concentration within the Bitcoin mining industry, with publicly listed miners likely to hold a higher share.
Moreover, there is the prospect of “horizontal integration” via “mergers and acquisitions” among miners spanning different regions, aiming to leverage “synergies and minimize” collective operational expenses.
Bitcoin Market Sentiments And Potential Surge
Meanwhile, as JPMorgan analysts suggest a potential drop in Bitcoin’s price post-halving, Hunter Horsley, CEO of Bitwise, remains optimistic about Bitcoin’s long-term outlook. Horsley predicts that the cryptocurrency will surge to $ 250,000 sooner than anticipated.
Bitcoin is going to eat into gold’s TAM faster than people expect.
$ 250k Bitcoin could happen much sooner than most who’ve followed the space for years would imagine.
Why? For 15 years, Bitcoin proved it’s merits but was only accessible to some.
Bitcoin ETFs were Bitcoin’s…
— Hunter Horsley (@HHorsley) February 28, 2024
Meanwhile, many metrics within the BTC market signal a potential surge for Bitcoin. On-chain data reveals that the Bitcoin MVRV ratio has reached levels reminiscent of the parabolic bull run experienced in 2020, suggesting a forthcoming surge may be imminent.
MVRV hit 2.5, indicating a +150% average profit for all #Bitcoin wallets.
In Nov 2020, MVRV was 2.5 at $ 18K, preceding the all-time high and parabolic bull run.https://t.co/cx8nYhNeeI pic.twitter.com/PgRLietkkz
— Ki Young Ju (@ki_young_ju) 2
Amid these varying forecasts and market sentiments, BTC trades at $ 63,391, marking a slight retracement from its recent peak above $ 64,000 – the highest level traded in the past two years.
Featured image from Unsplash, Chart from TradingView
TRON Hits 95 Million Addresses Milestone, Will This Help Price?
On-chain data shows the total number of addresses on the TRON network has exceeded the 95 million mark, a major milestone for the blockchain.
TRON Addresses Carrying A Balance Have Broken The 95 Million Mark
According to data from the market intelligence platform IntoTheBlock, TRON has far left behind other layer 1 networks like Cardano and Avalanche regarding its address growth.
Here, the analytics firm has used the total number of addresses on the blockchain carrying some non-zero balance to keep track of this network growth.
When these addresses with a balance go up, it means that either fresh investors are joining the network or old holders are returning. Either way, such a trend can be a positive sign for any cryptocurrency, as it suggests that some net adoption of the blockchain is going on.
On the other hand, a decline in the metric implies some investors have decided to clear out their wallets, a potential sign that they have decided to leave the network behind.
Now, here is a chart that shows the trend in the total addresses with a balance for TRON over the past few years:
As displayed in the above graph, the total number of TRON addresses with a balance has been rising for a while now and has recently hit a new record of more than 95 million.
“Quite an impressive number, considering other layer 1 networks like Cardano and Avalanche have fewer than 10 million addresses,” notes IntoTheBlock. “Layer 1” blockchains handle transactions and security independently, without being dependent on other networks.
Given the pace at which the TRON network has seen addresses open up, it would appear that users have been preferring the blockchain to some of the other layer 1 networks.
Now, what this adoption might imply for the price of TRX can be complicated. The chart shows that adoption has been up for the asset for years, but this hasn’t exactly translated into its price.
One thing that’s usually certain about adoption is that it provides a solid foundation for the network and is a good sign that the asset will be around in the long term.
TRX Price
The cryptocurrency sector as a whole has been racing up recently, with Bitcoin leading the charge with its returns of 20% over the past week. TRON, however, has lagged behind the market, mustering only 3% profits in the same period.
The chart below shows that the coin is currently trading around the $ 0.14 level.
Regarding the market cap, TRX is currently the eleventh-ranked cryptocurrency. However, if the coin continues to be weaker than its competitors, it might slip down the list, as Chainlink (LINK), the twelfth largest coin, is currently closing the gap with its stronger returns.
FLOKI Skyrockets 32% Higher Following DWF Labs’ $10 Million Acquisition Plan
In a significant development for the Floki Inu memecoin, digital asset market maker investment firm DWF Labs has revealed its plans to purchase $ 10 million worth of FLOKI tokens. The announcement has triggered a remarkable surge in the token’s price, propelling it to a new 9-month high at $ 0.00005097.
DWF Labs Strengthens Partnership With Floki Inu
According to the official statement, DWF Labs will acquire the tokens directly from the Floki treasury over two years, reflecting DWF Labs’ commitment to support the protocol’s ecosystem.
As announced, the firm recognizes the potential for an “explosive” bull run in the cryptocurrency industry and aims to leverage FLOKI’s utility and marketing strength to capitalize on this opportunity.
The partnership between Floki and DWF Labs was initially established in May 2023, when DWF Labs purchased $ 5 million worth of FLOKI tokens. Since then, DWF Labs has played a pivotal role in boosting FLOKI adoption.
Through the partnership, DFW Labs reportedly facilitated key exchange listings, introduced Floki to influential industry projects, and publicly championed the token’s progress and achievements. DFW Labs concluded in the announcement:
This massive FLOKI token purchase will further deepen our relationship with DWF Labs while strategically positioning FLOKI for dominance in an increasingly competitive landscape during this bull run
Price Soars, TVL Rises, And Chinese TV Exposure
Exciting developments continue for FLOKI as it gains significant exposure on China’s national sports TV channels, CCTV5 and CCTV5+. This exposure results from a strategic market partnership announced in 2023, which took place during the ITTF World Team Table Tennis Championships Finals in Busan 2024.
According to the memecoin development team, this opportunity to be featured on mainstream Chinese television has introduced Floki and its sister asset, TokenFi (TOKEN), to an extensive audience of over 340 million people and solidified their presence in the Chinese market.
The Floki Inu team expressed their excitement about this milestone, emphasizing that being featured on mainstream Chinese television is remarkable, making them among the very few cryptocurrencies to receive such recognition.
Another achievement for Floki Inu is the success of their FlokiFi Locker, a decentralized finance (DeFi) crypto locker protocol. The team announced that the Total Value Locked (TVL) in the FlokiFi Locker had reached an all-time high of $ 111 million, setting a new record and highlighting the widespread adoption of the token’s utility products.
In addition, the team announced that the total value locked for staked FLOKI tokens has reached an all-time high of $ 105 million. This represents 25% of the token’s supply, with $ 105,313,899 worth of tokens locked and staked for up to 4 years.
This position of dominance in staking distinguishes the dog-themed token from other major “memecoins” such as DogeCoin (DOGE), Shiba Inu (SHIB), BONK, and PEPE, as FLOKI has the largest share of its supply staked among them.
The memcoin token is trading at $ 0.00004080, maintaining its gains with a surge of over 32% in the last 24 hours. As a result, the market capitalization has jumped to nearly $ 500 million, reaching $ 475 million, according to the latest update.
Additionally, the trading volume for FLOKI has significantly increased, reaching $ 204 million in the past 24 hours.
Featured image from Shutterstock, chart from TradingView.com