Crypto Roundup 17: Regulating Crypto and BlackRock’s Bitcoin ETF
The last few weeks in cryptocurrency have seen an increase in the SEC’s regulatory actions against the crypto industry, specially against Binance and Coinbase. This raised concerns about an alleged strategy to control the crypto space. Tactics appear to include limiting liquidity, creating a challenging regulatory environment, denying licenses to crypto businesses, and favoring traditional finance institutions.
This approach seems to be evident with BlackRock’s Bitcoin ETF filing, which may pave the way for traditional finance to dominate the crypto sector.
BlackRock’s Bitcoin ETF Impact
In contrast, Bitcoin has seen a significant surge in price due to speculation around the potential approval of BlackRock’s Bitcoin ETF. Given their high success rate, the expected $300 billion capital inflow could boost Bitcoin’s market cap tenfold and make the price skyrocket in the future.
Technical Analysis: A Closer Look
To understand better the market’s behavior this week, let’s take a more detailed look at the technical analysis.
Bitcoin
The past week saw Bitcoin dropping below $25k due to regulatory concerns from the SEC and exchanges. This created a market panic, driving prices downward. However, the news of BlackRock’s ETF filing triggered a rebound, although we can’t yet confirm this as a bullish trend. The price recovery could be a mere ‘dead cat bounce’, as the asset was oversold.
On a weekly scale, the $24k-$25k range acted as a strong support, but a breach could potentially drag the price further down to $22k or even $20k.
Zooming into the daily timeframe, Bitcoin is bouncing within a descending channel that started in April this year. It appears like we’re ping-ponging within this range. For now, the RSI isn’t particularly bullish, but a closure above the 50-level could trigger a bullish divergence.
For a confirmation of a new bullish trend, ideally, we need the price to break this descending channel and form a bullish pattern like a double bottom. However, we’re far from that; the price could pass through $27k and still remain within the channel. A clearer picture might emerge in the coming weeks.
Ethereum
Ethereum’s weekly chart also isn’t too promising. The asset experienced a similar ‘dead cat bounce’ this week, but this shouldn’t be considered bullish. We seem to be bouncing back within the bearish trend, likely due to negative sentiment in recent weeks. A downward push to $1400-$1500 could be expected soon.
On a daily scale, Ethereum’s RSI was almost oversold, making sense of the bounce-back. However, unlike Bitcoin, there’s no potential bullish divergence. Ethereum could see a further decline in the coming weeks as there are no other bullish signs other than bouncing when oversold.
Bitcoin Dominance
Over the past few weeks, Bitcoin dominance broke a major resistance level that held for over a year. Now, it seems intent on climbing higher. This implies a possible further decline for altcoins, although many are bouncing back from oversold territory, due to the SEC news induced panic.
Spotlight on Altcoins
Despite the challenging market conditions during the last few weeks, I’ve purchased some altcoins that were oversold, including OP, FXS, and FTM. These coins might not have reached their bottom yet, but I had set orders at technical levels, so it’s not surprising to see a slight bounce-back.
As for new investments, I’m interested in GRT, RNDR, and INJ. They all performed well in the early stages of 2023, and if they reach my targets they could present good potential for the next upward cycle.
I’ll share my entry levels for these coins, but please note this is based on personal analysis and always conduct your own research.
The Graph (GRT)
GRT is an indexing protocol enabling data querying from blockchains like Ethereum and IPFS, and supporting the creation of decentralized applications.
With AI being a hot topic in 2023, GRT outperformed many others. It formed a robust double bottom on the weekly chart, then went on a rally. Now that it’s retracing, I’m interested in buying more at around $0.08. Its ATH was $3, signifying huge potential.
RenderToken (RNDR)
RNDR is a distributed GPU rendering network on Ethereum, connecting creators with GPU power providers and using a proof-of-render system for secure payment disbursement.
Priced at $0.85, with an ATH of $8.5, was one of 2023’s favourites. Although it could climb higher before reaching my target, I’m patient to buy at a lower price.
Injective Protocol (INJ)
INJ is a layer-one blockchain for DeFi applications, featuring a decentralized order book and multi-chain smart contract transactions.
INJ was another top performer in 2023, with a price of $3.1 and an ATH of $26. It had a solid rally in early 2023, and many speculate it could hit the top 10 in the next bull market.
Conclusion
The events of this week once again demonstrate the dynamic and unpredictable nature of the cryptocurrency market. Amid regulatory pressures from the SEC and the introduction of BlackRock’s Bitcoin ETF, we have observed the market’s resilience and adaptability.
Keep an eye on the evolving narrative surrounding Bitcoin’s price movements. Be ready to seize potential investment opportunities as they arise below the $25k mark. With the impending approval of BlackRock’s Bitcoin ETF, we might witness a reshaping of the crypto landscape and an exponential surge in Bitcoin’s value.
Additionally, monitor altcoins which might offer considerable growth prospects despite the challenging market conditions. Remember, it’s crucial to blend strategic planning with patience and accurate market analysis during these uncertain times.
Follow me on Twitter and Medium for more weekly altcoin picks, market insights, and updates. Remember, this is the time to strategize and accumulate. Strategy over panic, always.
Happy investing!
- Elvryn
