Crypto Price Prediction: The crypto market has witnessed a surge in volatility since the approval of spot Bitcoin ETFs on Wednesday. Amid the ETF approval and two trading days in the U.S. market, the underlying asset BTC temporarily hit $49000 but made a quick retracement to $42000. This selling pressure spread across top altcoins creates concerns about the sell-the-news theory.
Also Read: What’s Next After Spot Bitcoin ETF? Expert Unveils Key Trends to Watch
BlackRock Accumulates Bitcoin in the Current Market Dip
BlackRock’s recent move into Bitcoin, notably buying during a dip, signifies a substantial shift in their asset allocation. Over just two days, this single player withdrew 11,500 BTC from the market which is equivalent to approximately 13 days of Bitcoin’s daily issuance, which stands at 900 BTC.
Furthermore, the IBIT Spot ETF accounted for only about 25% of the trading volume during this period, implying that an additional 46,000 BTC might have been absorbed from the market over two days, influenced partly by the activity around $GBTC.
The renowned analyst InvestAnswers also projected that the estimated daily consumption of Bitcoin by US ETFs alone is about 23,000 BTC, based on the assumption that 11,500 BTC withdrawals are replicated four times (11,500 x 4 = 46,000). This is over 25 times the daily production of Bitcoin. This figure doesn’t even account for the demand from retail investors and other global ETFs.
The key takeaway here is that despite the volatility in its price, Bitcoin is proving to be an incredibly resilient asset. If the current trend of high demand and limited supply continues, the market could face an extreme supply crunch.
Amid the indecisive sentiment in the market, Ethereum(ETH), Tezos(XTZ), and SUI showcased strong resilience and intact bullish outlook.
Is Ethereum (ETH) Price Ready for $3k?
Ethereum (ETH) Price| TradingView Chart
The ongoing recovery trend in Ethereum(ETH) price can be traced using an ascending support trendline which provides buyers dynamic support during pullback. Surprisingly, the announcement of the Spot Bitcoin ETF approval had a more pronounced effect on ETH than on Bitcoin, resulting in a 10.4% increase on Wednesday.
This surge pushed the ETH price past the previous swing high resistance of $2,400, suggesting a potential for further growth. The approval of a spot Bitcoin ETF has also boosted the likelihood of a Spot Ethereum ETF, which could significantly enhance Ethereum’s value.
Should the ETH price maintain stability above the newly established $2,400 support level, this could enable buyers to drive a prolonged recovery, potentially reaching price targets of $2,700, then $3,000, and eventually $3,281.
The Bollinger Bands indicator further supports this bullish outlook; an increase in the upper boundary of the Bollinger Bands signals that buyers are gaining control over the market.
Bullish Reversal Pattern Sets Tezos (XTZ) Price for 28% Upswing
Tezos (XTZ) Price| TradingView Chart
Amidst the heightened anticipation for a spot Bitcoin ETF, the Tezos (XTZ) price witnessed a significant rebound from the $0.8 local support earlier this week. This bullish momentum led to an impressive 42.7% increase, positioning buyers to potentially retest the last swing high of $1.19.
A closer examination of the daily time frame chart reveals that the current uptick in XTZ price is forming a bullish reversal pattern known as the inverted head and shoulders. Driven by this pattern, the coin is expected to reach the neckline resistance at $1.485.
Consequently, if XTZ successfully breaks out from the immediate resistance of $1.19, it could enable buyers to push the price approximately 28% higher from its current trading price of $1.154.
A bullish breakout from the neckline resistance would provide stronger confirmation of a trend reversal. Additionally, a bullish crossover between the MACD (blue) and the signal (orange) lines suggests that a recovery trend is currently active.
SUI Price Aiming for $1.5 Amid Strong Bullish Momentum and TVL Growth
SUI Price| TradingView Chart
Bucking the trend of prevailing market uncertainty, the SUI token experienced a notable inflow mid-week. On January 11th, this altcoin saw a 29% surge, breaking out of a two-week consolidation phase and surpassing key resistance levels at $0.92 and $1. By press time, the SUI price stood at $1.29, showcasing an impressive 80% growth within the week. This rise, coupled with a meteoric increase in Total Value Locked (TVL), signals a mounting interest among traders and expectations of a significant recovery in 2024.
The Sui Network, a layer-1 blockchain, recently reported a 500% growth in TVL over the last three months, an even more remarkable 1350% increase over six months. Current data from the market analysis platform DeFi Llama places Sui’s TVL at an impressive $315.99 million.
If the SUI price can maintain its position above the recent support level of $1.25, there’s potential for buyers to extend the rally by an additional 15.8%, aiming for a target of $1.5.
The daily Average Directional Index (ADX) value, standing at 25%, indicates that the recent consolidation phase has successfully rejuvenated the previously exhausted bullish momentum
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