- Despite dropping $4000 from highs, ETH/USD price action remains bearish
- Head and shoulders pattern indicates more downside
- A bearish flag pattern supports short-sellers
Traders are often impatient for a market to move. Long periods of price consolidation lead to overtrading or giving up on an idea simply because the market did not move.
This is particularly true in the crypto market. Known for its high volatility, it brought fortunes to many traders as quick moves resulted in quick profits.
For instance, ETH/USD rose from $1000 in 2021 to $5000 in 2022. The ones that bought and held onto their traders for a year saw their accounts increasing exponentially.
But trading is a story of both winning and losing. Not everyone wins. In fact, most retail traders lose money trading. It is easy to say that you might have bought ETH/USD at $1000 and close it at $5000. How about buying at $5000 on fears of missing out on an even bigger move, only to see the market crashing back to $1000.
Sure enough, plenty of traders have bought into the dip. And, even though ETH/USD dropped $4000 from its highs, the bias remains bearish.
ETH/USD bigger picture is a reason for bulls to worry
On its trip to $5000, ETH/USD formed a head and shoulders pattern. Once the price broke below the neckline, it found no support until it reached $1000.
The level marked the bottom of the year for the stock market and the highest point for the US dollar. Since then, stocks bounced sharply, and the cryptocurrency market followed.
But despite the rally at the start of 2023, the bigger picture remains bearish for ETH/USD. A bearish flag pattern should be a good enough reason for bulls to worry, as it is usually followed by more downside.
Bears would want to see the price dropping to $1000 once more. It would mean that the bearish flag pattern ended and that the next target is the head and shoulders’ measured move.
On the other hand, bulls may want the price to simply stay in the flag and test the upper edge of it. This is the only way to invalidate a bearish flag pattern.
- ETHUSD soared to a new high for the year
- The move was not related to the US dollar
- $2,000 is a pivotal level for the pair
Less than one week before the Federal Reserve (Fed) meeting, the cryptocurrency market reached new highs for the year. ETH/USD, for instance, just made a new high, trading close to $1,800.
It was not because of a soft dollar. Just the contrary, the dollar has been bought across the FX dashboard while the leading cryptocurrencies made a new high for the year. Therefore, investors might find the current levels too depressed and think it is worth investing in.
What does the technical picture show for Ethereum now that it has made a new high for the year?
Bullish triangle’s measured move points to more upside
ETH/USD consolidated in a contracting triangle during the second half of last year. The triangle formed at the bottom of a bearish trend, and when 2023 started, the market broke above its upper trendline
Therefore, the pattern acted as a reversal.
Such a triangle has a measure move given by the length of its longest segment. The second segment is the longest, as the triangle is irregular (i.e., the second segment is longer than the first one).
It means that if we project the length of it from the end of the triangular pattern, we can find the measured move around $2,200. Moreover, it means that the market should move above the pivotal $2,000 level.
On the flip side, the bullish scenario would be invalidated should Ethereum reverses and moves below $1,200.
It would be curious if the market would remain uncorrelated with the US dollar. That should concern crypto traders, given that the Fed March meeting is due next week.
Ethereum joined the crypto market frenzy this year and gained 30% YTD. While only a small consolation compared to the 2022 decline, it is encouraging for bulls that the recent rally took less than a month.
In other words, ETH/USD rose 30% in 25 trading days only. So what does it mean from a technical and fundamental perspective?
Technical analysis shows a bullish picture while above $1,200
A contracting triangle formed on the daily chart during the second half of last year. $1000 and $2000 acted as support, respectively, resistance levels.
Triangles are interesting patterns. They are the most common technical analysis patterns and can signal continuation or reversal.
As such, it is often difficult to know beforehand what type of triangular pattern the market forms before the price breaks out of it. This is the safest way to trade a contracting triangle – just wait for the price to move above or below the triangle’s trendlines.
The price broke above the upper trendline because of the recent price action in the ETH/USD rate. At this point, traders should focus on the triangle’s measured move, calculated as the distance of the longest segment in the triangle projected from the upper trendline.
Fundamental analysis depends on what the Fed does/says next week
Market participants noted the slow price action that has characterized trading this week. With no important economic data scheduled, the focus shifts to the Federal Reserve’s decision next week.
The US dollar’s strength was responsible for the “crypto winter” seen last year. Also, its weakness was at the heart of this year’s rebound.
Because many institutional investors have adopted cryptocurrencies, the leading cryptocurrencies became part of their portfolios. In other words, they move in sync with the overall markets, affected by factors such as monetary policy, inflation, and other pieces of economic data.
A hawkish Fed next week might send the US dollar higher. If that is the case, we will see the true nature of this January’s rally – is it crypto-based, or is the dollar still in the driving seat?
Major cryptocurrencies were trading higher on Wednesday evening as the global market cap rose 2.5% to $880 billion at 7:38 p.m. EST.
Price Performance Of Major Coins
Coin
24-hour
7-day
Price
Bitcoin BTC/USD
2.9%
6.35%
$17,943.06
Ethereum ETH/USD
4%
10.5%
$1,389.02
Dogecoin DOGE/USD
1.04%
6%
$0.08
Top 24-Hour Gainers (Data via CoinMarketCap)
Cryptocurrency
24-Hour % Change (+/-)
Price
Avalanche (AVAX)
+24.88%
$15.87
NEAR Protocol (NEAR)
+10.9%
$1.82
Fantom (FTM)
+9.2%
??$0.26
See Also: Best Cryptocurrencies To Hold Until 2030Why It Matters: Bitcoin and Ethereum traded higher in tandem with stocks on Wednesday as investors awaited the U.S. Labor Department’s consumer price index (CPI) numbers, which are due Thursday morning.Economists expect CPI to come in at 6.5% in December — lower than the 7.1% number reported in November. On Wednesday, the S&P 500 and Nasdaq closed 1.3% and 1.8% higher respectively. At the time of writing the U.S. stock futures were seen trading flat. “Right now might be the calm before the inflation storm as we are not seeing major positioning ahead of this CPI report. For some traders, they feel confident that either we get a soft landing or a not too bad recession,” said Edward Moya, a senior market analyst at OANDA. “It might not be smooth sailing with across the board pricing declines with the December inflation report as core prices from a month ago might edge higher,” said Moya.The analyst noted that institutional investors remain cautious and therefore cryptocurrencies are “slightly softer.”“If risk appetite remains intact post inflation report, Bitcoin could make another run at the $18,500 level. If core prices prove to be troubling, Bitcoin could decline back towards the December lows,” said Moya, in a note seen by Benzinga. Michaël van de Poppe said that Bitcoin has held on to the $17,300 level. “we probably continue rallying and then it depends on CPI. Most likely, given the current outlook, we correct temporarily around CPI, before we continue,” said the cryptocurrency trader. He said if CPI is beaten, tomorrow Bitcoin could touch the $18,500 mark.Separately, Van de Poppe expressed optimism for Bitcoin this year. He said “most likely” in the coming 6 months the apex coin could make a run towards the $30,000-$40,000 levels but most people “aren’t ready for it.” Santiment said Tether (USDT) is “continuing to see growth from sharks and whales who are loading up for the next [bull run].” The market intelligence platform said there are now 21,459 addresses that hold $100,000 or more of USDT, which is just 1% shy of a new all-time high. Digital Currency Group (DCG) owned Grayscale moved 21,000 BTC, worth nearly $379.07 million at the time of writing, according to CryptoQuant CEO Ki Young Ju. The funds were moved with 60% on-chain realized loss. “It’s likely just switching to new cold wallets for security reasons. Over 1k BTC flowed into the Coinbase exchange, possibly for management fees,” said Ki on Twitter.Notably, on Tuesday, Gemini Exchange founder Cameron Winklevoss called for the ouster of DCG CEO Barry Silbert calling out alleged fraud.Read Next: Nearly Half Of All Bitcoin Hasn’t Moved An Inch In 2 Years: Ark Invest Pegs This Level As Strongest Support
Major coins rallied on Thursday evening as the global cryptocurrency market cap rose 2.85% to $906.4 billion at 7:23 p.m. EST.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 5.3% | 12% | $18,870.89 |
| Ethereum ETH/USD | 2.2% | 13.3% | $1,417.34 |
| Dogecoin DOGE/USD | 3.9% | 12.65% | $0.08 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| Aptos (APT) | +21% | $6.40 |
| Frax Share (FXS) | +14.45% | $6.45 |
| Immutable (IMX) | +9.4% | $0.54 |
See Also: Best Crypto Day Trading Strategies
Why It Matters: Bitcoin and Ethereum were higher on Thursday after the consumer price index in the United States fell 0.1% month-over-month in December. Annual inflation is now at the lowest level since October.
Risk assets like stocks were buoyant after the release of the inflation data but struggled to find direction as the labor market remains tight. The U.S. economy added 223,000 jobs in December, exceeding economist expectations of 200,000, according to data from Labor Department earlier this month.
On Thursday, the S&P 500 and Nasdaq closed 0.3% and 0.6% higher, respectively. U.S. stock futures traded flat at the time of writing.
“Bitcoin made a run towards the $18,500 level after inflation slowed for a sixth straight month. The nearing of the end of Fed tightening gave risky assets an initial boost, but that is quickly fading away,” said Edward Moya, a senior market analyst at OANDA.
“Bitcoin was unable to break the $18,500 barrier, which suggests price might remain trapped in the trading range that has been in place over the past couple of months,” said Moya, in a note seen by Benzinga.
On-chain analysis firm Glassnode said that over the course of an hour on Thursday, over $93 million in Bitcoin short future positions were liquidated.
Michaël van de Poppe said he had closed his shorts as he didn’t see the conviction he’d like to see on Bitcoin. “Maybe sweep towards $18.5-18.7K before cooling off. No longs for me at this stage,” said the trader.
Santiment said Bitcoin is on the verge of breaking down the $19,000 resistance level for the first time since November 8. “Whales are beginning to take interest and are likely perpetuating this climb, with $1M+ [BTC] transactions rebounding to November 2022 levels.”
Read Next: Bitcoin To Outperform Altcoins Soon, Says Analyst Who Nailed 2018 Bottom Prediction
Major cryptocurrencies were trading higher on Wednesday evening as the global market cap rose 2.5% to $880 billion at 7:38 p.m. EST.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 2.9% | 6.35% | $17,943.06 |
| Ethereum ETH/USD | 4% | 10.5% | $1,389.02 |
| Dogecoin DOGE/USD | 1.04% | 6% | $0.08 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| Avalanche (AVAX) | +24.88% | $15.87 |
| NEAR Protocol (NEAR) | +10.9% | $1.82 |
| Fantom (FTM) | +9.2% | $0.26 |
See Also: Best Cryptocurrencies To Hold Until 2030
Why It Matters: Bitcoin and Ethereum traded higher in tandem with stocks on Wednesday as investors awaited the U.S. Labor Department’s consumer price index (CPI) numbers, which are due Thursday morning.
Economists expect CPI to come in at 6.5% in December — lower than the 7.1% number reported in November.
On Wednesday, the S&P 500 and Nasdaq closed 1.3% and 1.8% higher respectively. At the time of writing the U.S. stock futures were seen trading flat.
“Right now might be the calm before the inflation storm as we are not seeing major positioning ahead of this CPI report. For some traders, they feel confident that either we get a soft landing or a not too bad recession,” said Edward Moya, a senior market analyst at OANDA.
“It might not be smooth sailing with across the board pricing declines with the December inflation report as core prices from a month ago might edge higher,” said Moya.
The analyst noted that institutional investors remain cautious and therefore cryptocurrencies are “slightly softer.”
“If risk appetite remains intact post inflation report, Bitcoin could make another run at the $18,500 level. If core prices prove to be troubling, Bitcoin could decline back towards the December lows,” said Moya, in a note seen by Benzinga.
Michaël van de Poppe said that Bitcoin has held on to the $17,300 level. “we probably continue rallying and then it depends on CPI. Most likely, given the current outlook, we correct temporarily around CPI, before we continue,” said the cryptocurrency trader. He said if CPI is beaten, tomorrow Bitcoin could touch the $18,500 mark.
Separately, Van de Poppe expressed optimism for Bitcoin this year. He said “most likely” in the coming 6 months the apex coin could make a run towards the $30,000-$40,000 levels but most people “aren’t ready for it.”
Santiment said Tether (USDT) is “continuing to see growth from sharks and whales who are loading up for the next [bull run].” The market intelligence platform said there are now 21,459 addresses that hold $100,000 or more of USDT, which is just 1% shy of a new all-time high.
Digital Currency Group (DCG) owned Grayscale moved 21,000 BTC, worth nearly $379.07 million at the time of writing, according to CryptoQuant CEO Ki Young Ju. The funds were moved with 60% on-chain realized loss.
“It’s likely just switching to new cold wallets for security reasons. Over 1k BTC flowed into the Coinbase exchange, possibly for management fees,” said Ki on Twitter.
Notably, on Tuesday, Gemini Exchange founder Cameron Winklevoss called for the ouster of DCG CEO Barry Silbert calling out alleged fraud.
Dogecoin DOGE/USD founder Billy Markus, popularly known as Shibetoshi Nakamoto, recently sold his Ethereum ETH/USD holdings at $1,190 in order to cover potential 2022 taxes.
What Happened: Markus jokingly said that “so everyone, you’re welcome for this rally”— since he couldn’t join in because had sold off all of his ETH holdings.
At the time of writing, ETH was up 5% in the last 24 hours, trading at $1401.
A crypto Twitter inquired how he owed taxes despite the crypto markets turning red in 2022. To this, Markus responded by saying: “I sold NFTs, you always owe taxes if you do commerce in crypto but I owed more than my crypto was worth so I actually made negative money.”
See More: Best Crypto Day Trading Strategies
Another Twitter user “Elon Artist” asked at what price did Markus buy ETH that he sold away?
Markus responded, “I didn’t buy any, I sold NFTs, California and the IRS take 53% of the selling price at the exact moment of sale”
Price Action: ETH was trading at $1,398, up 5.11%. DOGE at $0.07, up 2.72% in the last 24 hours, according to Benzinga Pro.
Read Next: FTX Says It Has Recovered Over $5B But Extent Of Customer Losses Unknown
Bitcoin and other major cryptocurrencies were trading higher on Tuesday evening as the global cryptocurrency market cap rose nearly 1% to $857.5 billion at 7:33 p.m. EST.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 1.4% | 4.5% | $17,440.32 |
| Ethereum ETH/USD | 0.9% | 9.95% | $1,335.74 |
| Dogecoin DOGE/USD | 1.15% | 9.7% | $0.08 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| WOO Network (WOO) | +10.6% | $0.17 |
| Shiba Inu (SHIB) | +5.3% | $0.0000092 |
| Ape Coin (APE) | +4.7% | $4.88 |
See Also: Best Crypto Wallets Of 2023
Why It Matters: Major coins traded up as risk assets saw buoyancy on Tuesday. The tech-heavy Nasdaq rose for a third straight day. The index closed 1% higher, while the S&P 500 ended 0.7% up. U.S. stock futures were marginally higher at the time of writing.
On Tuesday, U.S. Federal Reserve Chair Jerome Powell did not specifically address policy outlook in a speech he made in Sweden. Investors will be on the lookout for the policy meeting of the central bank due between Jan. 31 – Feb. 1.
In the near term, the market is awaiting consumer price index data, scheduled for release on Thursday.
“Fed Chair Powell’s speech at the symposium on central bank independence did not give an update on the economy or monetary policy,” said Edward Moya, a senior market analyst at OANDA.
“Bitcoin and Ethereum got a boost after the dollar softened after a key appearance by Fed Chair Powell did not contain another round of hawkish Fed speak,” said the analyst, in a note seen by Benzinga.
Michaël van de Poppe said for Bitcoin to continue rallying, the dollar index shouldn’t reclaim the 103.50 level. “If it does, probably risk-on sells [off] again,” said the trader. At the time of writing, the dollar index — a measure of the greenback’s strength — traded at 103.29.
Separately, Van de Poppe said that Bitcoin has run into resistance and said he doubts it will break out in one go. Bitcoin “needs clear conviction in the coming 24 hours otherwise bearish divergence possible,” said the trader.
He said it needs to stay above $17,350 in order to continue rallying.
Tuesday saw high drama as Gemini exchange co-founder Cameron Winklevoss sent an open letter to the board of the Barry Silbert-led Digital Currency Group, calling for the ouster of Silbert as CEO as he’s “proven himself unfit to run DCG and unwilling and unable to find a resolution with creditors that is both fair and reasonable.”
A DCG spokesperson responded by calling allegations made by Winklevoss “malicious, false and defamatory,” reported Reuters.
Silbert has refuted Winklevoss’ allegations that his company owes hundreds of millions to the cryptocurrency exchange.
Meanwhile, Gemini suspended its Earn program which gave investors the opportunity to earn yield by lending digital assets to Genesis Capital through DCG, reported CoinDesk.
Read Next: Is Crypto The Smartest ‘Ponzi’ Or Stupidest ‘Bubble’ Ever? Financial Historian Weighs In
OpenAI‘s ChatGPT is revolutionizing the way people engage on social media with its unique ability to answer almost any question posed to it.
Benzinga decided to put the chatbot to the test with questions on cryptocurrency. It should be noted that ChatGPT emphasized investor safety and education as every answer was accompanied by a disclaimer alerting users to the highly volatile nature of the asset.
Here’s how it handled the queries:
Question: Which cryptocurrency should I invest in?
ChatGPT: It is not appropriate for me to provide personalized investment advice. It is important to thoroughly research and carefully consider any investment decision. It is also a good idea to consult with a financial adviser or professional before making any investment decisions. In addition, it is worth noting that investing in cryptocurrency carries a high level of risk and may not be suitable for all investors.
Question: Which crypto should I invest in, Bitcoin BTC/USD or Ethereum ETH/USD?
ChatGPT: Bitcoin and Ethereum are two of the most popular and widely recognized cryptocurrencies, and they have both seen significant price fluctuations and price growth over the past several years. Ultimately, the decision to invest in Bitcoin or Ethereum, or in any other cryptocurrency, should be based on your own research and risk tolerance.
See More: Best Crypto Day Trading Strategies
Question: Is Dogecoin DOGE/USD a safe investment?
ChatGPT: Dogecoin, like other cryptocurrencies, has seen significant price fluctuations and has a high level of price volatility. This means that the value of Dogecoin can fluctuate significantly over short periods of time, and investing in it carries a high level of risk. It is important to carefully consider your own risk tolerance and investment goals before deciding to invest in Dogecoin or any other cryptocurrency. It is not appropriate for me to provide personalized investment advice. It is important to thoroughly research and carefully consider any investment decision. It is also a good idea to consult with a financial adviser or professional before making any investment decisions.
Question: Rate cryptocurrencies based on their level of risk
ChatGPT: It is difficult to accurately rate cryptocurrencies based on their level of risk, as the risk associated with any particular cryptocurrency can change over time. The level of risk associated with a cryptocurrency may depend on a variety of factors, including its market capitalization, level of adoption, regulatory environment, and the security of its network. Additionally, the risk of investing in cryptocurrency may be influenced by your own risk tolerance and investment goals.
Question: What are the top 10 cryptos according to you?
It is not appropriate for me to provide a ranking of cryptocurrencies or to recommend specific investments. The value and ranking of cryptocurrencies can change rapidly and is highly volatile, and it is important to thoroughly research and carefully consider any investment decision. It is also a good idea to consult with a financial adviser or professional before making any investment decisions.
Price Action: BTC was trading at $17,211, up 1.53%. ETH at $1,310, up 3.66% in the last 24 hours, according to Benzinga Pro Data.
Major coins were seen trading higher on Monday evening as the global cryptocurrency market cap rose 1.3% to $850 billion.
| Coin | 24-hour | 7-day | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 0.45% | 3% | $17,211.65 |
| Ethereum ETH/USD | 2.85% | 8.9% | $1,324.26 |
| Dogecoin DOGE/USD | 4.35% | 6.7% | $0.08 |
| Cryptocurrency | 24-Hour % Change (+/-) | Price |
|---|---|---|
| Aptos (APT) | +34.1% | $5.27 |
| Gala (GALA) | +29.8% | $0.04 |
| Curve DAO Token (CRV) | +13.6% | $0.65 |
See Also: Top Trading Platforms For Altcoin Investing
Why It Matters: Bitcoin, Ethereum, and Dogecoin were in the green as investors found appetite for tech shares, which led to the Nasdaq closing higher for a second consecutive session. At the time of writing, U.S. stock futures were down.
On Monday, a survey released by The Federal Reserve Bank of New York’s Center for Microeconomic Data indicated that short-term or one-year inflation expectations continued to decline.
The data came ahead of the issuance of the latest CPI data, which will be released during Thursday’s pre-market session. Federal Reserve Chair Jerome Powell is also expected to make a speech on Tuesday in Stockholm, Sweden.
Bitcoin is rejecting an important level as Powell’s speech approaches, noted Michaël van de Poppe. The trader said that Bitcoin will probably sweep towards $17,100 before another bounce towards $17,500 for “bearish divergence.”
The cryptocurrency trader said there’s “good volatility” on the apex coin.
Justin Bennett said he observed “beautiful stair-step action” on Bitcoin so far in 2023. The trader pointed out that Bitcoin retested $16,700 last week and held above $16,900 over the weekend and was about to test $17,300.
“Wall Street is pricing in the Fed to be one and done with tightening and possibly cutting rates at the end of the year,” said Edward Moya, a senior market analyst at OANDA.
“Cryptos are rallying today, but BNB, Cardano, Solana, MATIC, and Polkadot are easily outperforming Bitcoin and Ethereum,” said Moya. SOL soared 11% to $16.43 over a 24-hour period at the time of writing.
“Solana was a casualty of the collapse of FTX and Alameda Research. Everyone knew Solana had deep financial ties with FTX, so it was no surprise that the SOL prices collapsed. Solana was supposed to be the Ethereum killer and it still has a chance if it can survive this dark period.”
Marcus Sotiriou, a market analyst with GlobalBlock, noted that Solana is performing well after the non-fungible token community united following the exit of the two most valuable NFT projects — DeGods and Y00ts — which have moved to Ethereum and Polygon (MATIC) respectively.
“This shows the resilience of the Solana NFT community, providing optimism for SOL token holders. A meme coin, BONK, was airdropped to many Solana NFT communities, excluding DeGods and y00ts, and climbed almost 50x in the space of a week, which further united the Solana NFT community,” said Sotiriou.
Read Next: Ethereum Rival Cardano’s 20% Surge Amazes Analyst: ‘Did They Figure Out A Cure For Cancer?’