Bitcoin and Ethereum Approach 50-Day Moving Averages in Technical Analysis
The cryptocurrency market has shown a nearly 2% rally in the past 24 hours, reaching a total market capitalization of $2.34 trillion. Despite a slight dip at the beginning of the day, the figure climbed to $2.38 trillion, a level not seen since June 20th.
Bitcoin and Ethereum are currently testing their 50-day moving averages, having pulled back from the more significant 200-day MA. While there was a notable correction and subsequent upside reversal earlier this month, levels around $63,000 per BTC and $3,500 per ETH appear to be experiencing a temporary shakeout rather than serving as formidable resistance points.
Recent data from CoinShares indicates that crypto fund investments surged by $1.439 billion last week, following a $441 million inflow in the preceding week. This marked the second consecutive week of growth and represented the fifth-largest weekly inflow on record. Of the total investments, Bitcoin saw an increase of $1.347 billion, Ethereum $72 million, and Solana $4 million. Notably, Ethereum witnessed its most substantial inflows since March, likely in anticipation of the imminent approval of spot ETH ETFs in the United States.
Despite the positive investment trends, CoinShares highlighted that the weekly trading volume remained relatively low at $8.9 billion, significantly below this year’s average of $21 billion.
In a noteworthy statement, BlackRock CEO Larry Fink expressed his view that Bitcoin serves as a legitimate financial instrument for investment during periods of heightened uncertainty. Fink emphasized that BTC provides an opportunity to invest in an asset that is not subject to the control of any single country.
Analytical insights from IntoTheBlock revealed that Bitcoin miners accumulated 71,000 BTC in the previous week despite declining prices. CryptoQuant observed that the 30-day coin accumulation rate reached its highest level since April 2023. Additionally, Santiment reported a decrease in long positions held by retail traders, a factor expected to bolster the long-term bullish trajectory of the market.
Furthermore, Whale Alert detected the activation of a wallet that had remained dormant for nearly 12 years, facilitating the transfer of 1,000 BTC valued at approximately $60 million.
Market analyst Michael van de Poppe suggested that retail investors may be underestimating Ethereum’s potential, predicting that the asset could achieve new highs faster than other assets due to growing institutional demand. Van de Poppe also anticipates the approval of spot Ethereum ETFs in the US in the near future.
Bernstein recommended investing in companies within the cryptocurrency mining sector, citing the favorable economic growth environment influenced by what they termed the “Trump factor.”
Overall, the cryptocurrency market continues to exhibit resilience and attract significant attention from both retail and institutional investors, with various factors shaping the landscape for digital assets.
