Crypto market cools down: Where BTC & ETH could go
Market picture
The crypto market corrected 1.35% over the last 24 hours to 1.4 trillion. Participants are taking profits from the growth of the past few weeks, both in Bitcoin and the major altcoins. The financial market is awaiting US inflation news, which has always been a strong driver, so it makes sense that position traders are looking to profit.
Bitcoin trades near $36.5K and remains in overbought territory (>70) on the daily and weekly RSI timeframes. It will take another day or week of BTC declines to establish a transition to a correction on the respective timeframes. A full-blown correction could take the coin's price as low as $33.6K without breaking the upward trend.
Ethereum has been gaining support on dips towards $2030 for the past three days. The bulls are protecting the major altcoin from falling back below the milestone. Increased pressure could see a correction to $1900.
News Background
According to CoinShares, investments in crypto funds rose significantly for the third consecutive week, increasing by $293 million; inflows continued for the seventh week, totalling over $1 billion. Investments in Bitcoin rose by $240 million, Ethereum by $49 million and Solana by $12 million.
Total assets under management (AuM), now at $44.3bn, is the largest since the bankruptcy of significant crypto funds in May 2022, CoinShares said.
Ethereum has seen its largest inflows since August 2022, with the past two weeks marking a real turnaround in sentiment.
Increased institutional interest and a decline in the number of sellers confirm that the cryptocurrency market is entering a new phase. The current rally could be the start of a new bullish trend in the digital asset market, according to FalxonX.
The volume of available bitcoin supply has fallen to historic lows, and the "speed" of transferring coins into long-term storage is 2.5 times the rate of their issuance, according to Glassnode.
According to WhaleAlert, Tether has issued over $4 billion USDT of stablecoins in the last 30 days. For 2023, Tether has issued around $22bn USDT - of which $13bn (57%) is on the Tron blockchain.
By the FxPro Analyst team