This Week in Cryptocurrency: Decline in Stablecoin Purchases and Bitcoin's Resistance Challenges
In Brief
Bitcoin News & Macro
It appears that institutions have halted their purchases for the time being, leading to a decline in Bitcoin's value.
We observed that two days ago, institutions ceased their transfers and withdrawals to exchanges.
Despite some market jitters, there’s an underlying optimism, particularly among institutional participants.
Turning our focus to the technical landscape, Bitcoin has been having a tough time regaining its footing following a sharp 27% decrease from the previous week.
Source: Glassnode
After plummeting to around the $56,000 region, Bitcoin has shown some stability but remains entrenched in a consolidation phase, with bulls and bears fiercely competing for dominance. Each recovery attempt stalls just shy of the $64,000 resistance level, which used to be a solid support, while the 20-EMA hovering near $60,000 continues to suppress upward movements. Without a decisive breakthrough above these critical points, sellers are keeping a tight grip on the market, applying increasing pressure.
The weekly open around $58,500 hinted at early bullish potential, yet each daily close has been lower, signaling a lack of conviction from buyers. The conflict rages between the $56,000 support and $62,000-$63,000 resistance levels. Currently, the market finds itself in a turbulent, range-bound situation, eagerly awaiting a catalyst to break the impasse.
BTC Price Analysis
Now, shifting focus to Ethereum's realm. Starting from around August 12, Ether faced mounting pressure, plummeting to five-year lows in transaction fees. Over the weekend, median fees dropped to an astonishing low of just 1 gwei. This raised concerns about a possible decline in network activity at an alarming rate. To complicate matters, a significant whale from the Solana network sold off $84 million worth of assets, amplifying bearish sentiments across the crypto landscape, including Ethereum.
Source: TradingView
However, beneath the surface chaos, institutional investors show no signs of abandoning ship. Ether ETFs experienced significant inflows in early August, with approximately $105 million entering the market.
Source: TradingView
This serves as a clear indication that despite turbulent times, large investors still regard Ethereum as a fundamental element of their portfolios. The recent launch of Ethereum-based ETFs only adds fuel to the fire, signifying that even in a declining market, Ethereum remains a heavyweight.
Additionally, the staking ecosystem for Ethereum is quietly thriving, with over 120 million ETH currently locked in. This not only enhances network security but also brings smiles to long-term holders.
Ethereum News & Macro
In terms of pricing, Ethereum has been closely following Bitcoin's trajectory, slowly recovering after the recent downturn.
Source: Solscan
Based on the daily chart, ETH has been fluctuating between $2,600 and $2,700 without achieving a definitive breakout in either direction. The $2,600 mark acts as weak support, while the overhead 20-day and 50-day EMAs pressure the price, indicating an overarching bearish trend. Until ETH can reclaim $2,732, uncertainty will persist.
Source: SoSoValue
Zooming into the 4-hour chart, the consolidation pattern becomes clearer. Following a rebound from the $2,100 low, ETH's rally hit a wall at $2,700, leaving it confined in a narrow range. The 50-EMA is currently serving as resistance around $2,635, hindering upward momentum. The RSI being neutral at 50 confirms the market's indecision, with buyers and sellers reluctant to assert their dominance.
Source: Ultrasound.money
Tensions are palpable in the market, as a significant movement appears imminent, yet the direction remains elusive. Like Bitcoin, Ether finds itself in a holding pattern, anticipating a trigger for the next major shift. If it manages to reclaim the $2,800 mark, we could witness a rally toward $3,000; however, losing the $2,600 support may open the door to further downward pressure.
ETH Price Analysis
On a different note, Toncoin (TON) has had an exciting week, showcasing noteworthy activity that positively impacted its valuation and market perception.
Source: TradingView
Secure your tokens and earn attractive APR rewards.
Source: TradingView
The standout moment was a remarkable 10% price increase following its addition to Binance’s Launchpool, attracting fresh investors eager to stake BNB and FDUSD for TON rewards. This instantly propelled TON into the spotlight as a rising force in DeFi. In addition, TON's partnership with Pyth Network, which integrates real-time price feeds for institutions, has made it even more attractive to heavyweight players.
Michael Cahill, CEO of Douro Labs and a key contributor to Pyth, shared insights about the collaboration, stating:
Toncoin News & Macro
“These initiatives aim to empower TON developers and all supported ecosystems with the confidence to forge groundbreaking DeFi solutions that can cater to potentially millions of users.”
They have surged from 3.6 million addresses with balances at the start of the year to over 39.5 million today.
Furthermore, Turkey’s largest exchange, BtcTurk, has listed TON, enhancing its accessibility and outreach. So, are new record highs on the horizon? Only time will tell.
In addition to the news, TON’s pricing dynamics have also been quite eventful. In contrast to Bitcoin, TON appears to have shown considerable resilience post-crash, managing to rebound to previous pivotal levels. However, unlike Bitcoin, TON seems to have a much more volatile momentum, even amidst its current consolidation phase.
While the price of TON has managed to establish higher lows since its August trough, it’s struggling to decisively break above the $7.00 mark. For now, it remains locked in a narrow channel between $6.50 and $7.00.
Should TON finally manage to overcome the $7.00 resistance, it could make a spirited move towards $7.50 and beyond. However, if it continues to face challenges at this level, another phase of consolidation could be on the table—or worse, a retreat back to $6.50 or lower. Traders should definitely keep these critical levels on their radar.
TON Price Analysis
, please understand that the information provided here is not intended as legal, tax, investment, financial, or any other type of advice. It's essential to invest only what you can afford to lose and seek independent financial consultation if you're uncertain. For more information, we recommend checking the terms and conditions as well as the support pages provided by the issuer or advertiser. MetaversePost is dedicated to precise, impartial reporting, but market conditions may change unexpectedly.
Source: TradingView
Victoria is a writer specializing in various technology topics including Web3.0, AI, and cryptocurrencies. Her broad expertise enables her to craft insightful articles for a diverse audience.
Source: TradingView
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