bookmark_borderEthereum vs. Bitcoin: Did ETH/BTC just bottom as Ether eyes $2K?

The ETH/BTC pair is showing signs of bottoming, but further consolidation should not be ruled out.

Bitcoin’s (BTC) price has been broken past a major resistance level of $52,000 in the past few days and is approaching the all-time high region.

However, other cryptocurrencies are rallying heavily as well. In the recent months, the market has seen massive surges for Cardano’s Ada, Polkadot’s DOT and Cosmos’ Atom.

These altcoins have been seeing impressive gains as Ether (ETH) faces scalability issues and high network fees. This is resulting in negative sentiment on social media, where some investors and traders are doubting whether a bullish breakout will happen for Ether price.

But this might be exactly the period to become interested in the second-biggest cryptocurrency, especially with major upgrades expected for Ethereum in the summer.

Ether holds a critical level for continuation

ETH/USD 1-day chart. Source: TradingView

The U.S. dollar chart for Ether shows a major pullback in February and March, with ETH price dropping from $2,000 to $1,300. This was a 35% correction and was pretty healthy for the bull market before it can resume.

The bull cycle is intact as long as it doesn’t lose the critical levels, namely the $1,300 region, which was confirmed during this latest pullback. Luckily for the bulls, Ether’s price didn’t drop below this level, as the chart above shows.

However, what comes next is debatable. There’s a clear resistance zone between $1,800 and $1,900, while support levels are shown by the green boxes. The primary box is found between $1,475 and $1,550.

There are several important things to point out here. First of all, the momentum and sentiment were comparable to a funeral once Ether’s price hit the $1,300 level. Usually, such rock-bottom market sentiment is a big indicator to start looking for entry positions.

Now, ETH sentiment has flipped, as the public typically becomes bullish at resistance. Therefore, the most likely case here would be range-bound action for the coming weeks before a new impulse wave can start. Such an impulse move could trigger continuation toward $2,500 or higher.

Watch the ETH/BTC pair

ETH/BTC 1-day chart. Source: TradingView

The dollar value of altcoins can paint an inaccurate picture of a cryptocurrency’s strength.  The dollar value of a certain altcoin could be above the previous all-time highs, but the altcoin’s value in BTC terms may still be far away from its peak (e.g., Ada).

Such an observation means that Bitcoin is showing strength, while the altcoin may actually be losing value against BTC.

Ether is no exception and isn’t showing much momentum yet, still hovering around the 0.03 sats level. For instance, the all-time high for ETH/BTC was 0.112 sats in 2017.

The chart shows a clear rejection at the 0.035 sats level, which means further consolidation is likely before a potential shift in momentum. If the 0.03 sats area holds, additional compression and sideways action should start, which may then kick off a new impulse wave.

Currently, Ether is making another higher low in the BTC pair, which may add further strength toward a new higher high. This can then open the path toward 0.06 or 0.08 sats.

Bullish news can also boost the value of ETH in the short to medium term. Specifically, the major upgrade dubbed “London,” expected in July, should alleviate the high network fees and also add deflationary pressure on the ETH token.

Bitcoin dominance nears critical level

BTC dominance 3-day chart. Source: TradingView

The Bitcoin dominance chart is great for gauging the strength of altcoins. In this case, BTC dominance topped out in December 2020, which was followed by a massive “alt season.”

But now, the Bitcoin dominance chart shows a potential bottoming construction at a key support level. In other words, after such a big multimonth rally in altcoins, a correction wouldn’t be a surprise alongside rising BTC dominance.

This could mean that Bitcoin will rally in dollar terms. Or if BTC corrects against the dollar, altcoins will likely see an even bigger pullback than BTC.

In any case, if history repeats, the dominance will crawl up, alongside Ether testing the 0.03 sats area. After that, the summer may be a very bullish period for altcoins.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

bookmark_border公链 Casper 与 Covalent 合作为企业提供链上解决方案

链闻消息,公链 Casper 宣布与区块链数据查询服务平台 Covalent 合作提供企业级链上数据解决方案,Casper Network 内的链上数据可供企业和消费者使用,此次合作涉及知识产权和专利资产等各方面使用案例。由于关键和敏感的专利数据在 Casper Network 上进行管理和交易,Covalent 将为区块链上的数据建立索引,并将其与其他商业智能工具(如 Tableau、Looker 等)集成。Covalent 的数据 API 将使用户能够与 GPR 进行交互以确定专利估值,了解与技术和公司相关的专利活动,以及专利的一般知识图表。

原文链接:公链 Casper 与 Covalent 合作为企业提供链上解决方案

bookmark_borderMuch fun, no work: DOGE must ditch meme status to be valued as money

Doge reaching $1 is practically impossible unless the currency witnesses some Bitcoin-level buy-ins in the coming future.

There is no denying the fact that Dogecoin (DOGE) is by far one of the most polarizing crypto projects in the market today. On one hand, many think of the cryptocurrency as largely being a joke that has long overstayed its welcome; however, there also those people — including many celebrities, business moguls, etc. — who evidently believe it’s a viable financial instrument that will stick around for a long time to come, or at least they are leading people into believing that.

For example, the owner of NBA franchise the Dallas Mavericks, Mark Cuban, recently stated that he is fairly confident that DOGE is here to stay and even has the potential to hit a price point of $1 in the near future. This proclamation comes a few days after the Mavericks started accepting Dogecoin as a form of payment.

He further revealed that fans were already behind this latest payment avenue, and as of March 7, the Mavs had already sold 20,000 Dogecoin — roughly $1,018 at press time — worth of merchandise, adding: “If we sell another 6,556,000,000 Dogecoin worth of Mavs merch, DOGE will definitely hit $1.”

It is worth mentioning that over the course of the last few months, DOGE’s list of prominent mainstream followers has been growing at a furious pace, with celebrities like Kiss co-lead singer and bassist Gene Simmons, former adult film star Mia Khalifa and American rappers Snoop Dogg and Lil Yachty all showcasing their support for the digital asset.

However, the most prominent backer of the “meme coin,” by far, is Tesla CEO Elon Musk, who has been vocalizing his support for DOGE through his Twitter account in a big way for nearly a year now.

Is the hype here to stay?

DOGE, just like any other cryptocurrency, is dependent on how many people adopt it. As a result, who’s to actually say that the currency can’t become the “future of money” if enough people were to start supporting it?

On the subject, Kadan Stadelmann, chief technology officer of Komodo — an open-source cryptocurrency project and blockchain solutions provider — told Cointelegraph that contrary to what Cuban and some other folks may believe, DOGE reaching $1 is practically impossible until some Bitcoin-level buy-ins are witnessed in the near future:

“We aren’t currently seeing this even with increased adoption by Mark Cuban and other NBA owners. DOGE does certainly already have a use case as a niche currency with avid fans, and adoption can certainly grow from here. But for it to genuinely be considered ‘future money,’ the narrative of DOGE as a meme coin will have to erode.”

On a more technical note, Stadelmann pointed out that when one takes into consideration the amount of new DOGE that is being minted every day — 10,000 per minute/14.4 million per day/5.2 billion per year — the price action of DOGE faces some harrowing challenges in the near term.

Furthermore, 14.4 million DOGE/day or 5 billion/year will soon become a small drop in the bucket, and the coin’s price action will be expected to stabilize as the 14.4 million/day today already represents only just over a ~4% supply increase/year of its available circulating supply.

Another way to talk about DOGE, its price speculation and its use as a legit financial instrument, as per Stadelmann, is by looking at the amount of United States dollars it absorbs every day to maintain its current price action levels against fiat. The token is currently trading at around $0.056, which requires Dogecoin to have $806,000 of new fiat in addition to its existing inflow in order to maintain its value, according to Stadelmann.

However, Johnny Lyu, CEO of KuCoin, pointed out to Cointelegraph that he is quite optimistic about the future of Dogecoin since it’s already one of the symbols of crypto for many people today: “I won’t be surprised to see DOGE being used in hotels, restaurants or cinemas in the future.” That being said, he believes that despite its potential, the token is unlikely to break into the top five anytime soon, adding:

“The search interests of DOGE have overtaken BTC from time to time. Compared to Bitcoin, DOGE is more suitable to be futures money for higher supply, lower price and faster transactions. It’s tailored for daily payment, and its community culture can easily resonate with the general public.”

Not everyone is sold on DOGE

Though DOGE’s recent success makes for an amazing feel-good story, a lot of industry experts are not entirely buying into the hype. For example, Stadelmann pointed out that when compared to other cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), institutions are far less likely to adopt Dogecoin or other similar coins: “DOGE doesn’t have a narrative like ‘digital gold’ and isn’t being seen as a store of value.”

In this vein, it bears mentioning that the price action of coins like DOGE is driven largely by their respective communities rather than by changes in the value of their underlying technology or use cases.

On the subject, Joel Edgerton, chief operating officer of cryptocurrency exchange bitFlyer, told Cointelegraph that coins like DOGE are meant to be fun rather than solve real-life problems and that it has not proven its value just yet: “Any asset can reach a certain price target if people are willing to pay for it. However, that type of momentum investing, without underlying value, is pure speculation.”

Where is DOGE heading?

DOGE has been on a tear recently as is made evident by the fact that over the course of the last 12 or so months, the currency has seen gains of over 2,440%. As a result, it’s worth delving into the question: Where does DOGE’s monetary ceiling actually lie?

In Lyu’s opinion, $0.20–$0.30 is a reasonable range in this bull run; however, he believes that there’s still a long way for DOGE to go before it can become anything more than a sort of short-term cultural phenomenon. For starters, it will have to be regulated — an aspect that will have a major impact on the currency’s future use and overall potential:

“Compliance is almost a must if it wants to be widely used in our daily lives, while it can also exist in a niche market without any regulation. Not bad for the future of DOGE in both ways. If the price of Dogecoin rises to $1, its market cap will be $100 billion, becoming the third-largest crypto. I think this is unlikely to happen in the short term.”

bookmark_border灰度母公司 DCG 计划购买至多 2.5 亿美元 GBTC 股份

链闻消息,灰度投资(Grayscale Investments)母公司 Digital Currency Group (DCG)计划购买灰度旗下的比特币信托基金(GBTC)不超过 2.5 亿美元的股份。DCG 计划使用现有现金为收购提供资金,并将根据 1934 年《证券交易法》第 10b-18 条的规定,由管理层自行决定在公开市场上进行购买。

股份购买授权不要求 DCG 在任何时期内购买任何特定数量的股份,并可在任意时间扩展、延长、修改或终止。股份购买的实际时机、金额和价值将完全取决于许多因素,包括可用现金水平、价格和当时的市场状况等。

原文链接:灰度母公司 DCG 计划购买至多 2.5 亿美元 GBTC 股份

bookmark_borderGrayscale parent Digital Currency Group plans to buy $250M of its own GBTC shares

In a further sign of a shake-up in the institutional market, DCG is eyeing the purchase along with hiring ETF specialists.

Cryptocurrency asset manager Grayscale has a new buyer of shares in its Grayscale Bitcoin Trust (GBTC) — its owner.

In a press release on March 10, Grayscale parent company Digital Currency Group (DCG) announced plans to purchase up to $250 million of GBTC shares.

GBTC to buy “up to $250 million” in shares

The move, which comes amid volatile conditions for GBTC, follows plans to hire specialists in the exchange-traded fund (ETF) sphere, signaling a potential diversification by the company.

According to the press release, DCG “has authorized the purchase by DCG of up to $250 million worth of shares of Grayscale Bitcoin Trust.”

“DCG plans to use cash on hand to fund the purchases and will make the purchases on the open market,” it adds.

DCG did not specifically state the reasoning behind the buyback.

Canada ETFs put the cat among the pigeons

As Cointelegraph reported, GBTC traded at its steepest-ever discount last week, with investors able to get exposure to Bitcoin at 13% below market value.

GBTC premium vs. holdings vs. BTC/USD chart. Source: Bybt

The regulatory go-ahead for ETFs to launch in Canada is thought to have contributed to Grayscale’s headache, with investors looking for the best-value proposition when it comes to embracing the traditionally volatile asset class.

The U.S. has yet to license a single ETF, with anticipation nonetheless building that regulators will sign off on a change to the status quo.

“A United States Bitcoin ETF will unleash a wave a of retail buying that will bend minds,” Nik Bhatia, author of Layered Money: From Gold and Dollars to Bitcoin, commented at the weekend. 

“The trade flow will obliterate available stock (supply). The harsh truth about 21 million is that there just ain’t a lotta BTC for sale.”

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