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- Bitcoin mirrors 2020 pattern
Bitcoin mirrors 2020 pattern
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Bitcoin's rally echoes 2020: Could BTC hit new heights?
Key points:
Bitcoin was gaining widespread attention as analysts predicted a potential surge to $135,000.
As ETH/BTC reaches its lowest point since 2021, investors, particularly from Korea and the U.S., begin to accumulate ETH.
News - Bitcoin [BTC] is gaining attention amid bullish momentum, with analysts forecasting significant price gains. Crypto analyst Ali Martinez drew parallels to Bitcoin's 2020 rally, suggesting a potential climb to $135,000 after intermediate targets of $108,000 and $99,000.
This outlook is supported by rising adoption, increased active addresses, and more specifically strong exchange outflows, which reduce available supply—a historically bullish indicator.
Metrics like the MVRV Ratio also signal potential for further growth, though risks such as heightened volatility and macroeconomic uncertainties remain.
BTC’s past trend- Bitcoin’s current trajectory mirrors its late-2020 surge, fueled by institutional interest and market optimism. However, today’s diverse crypto ecosystem and unpredictable conditions could alter the outcome.
Martinez emphasized the cyclical nature of Bitcoin’s market behavior while cautioning against overconfidence.
What’s more- Meanwhile, Ethereum [ETH] has remained above $3,000, despite a slight weekly drop of 2.15%. The ETH/BTC pair has dipped, reflecting Bitcoin’s dominance.
However, metrics suggest strong ETH accumulation by investors, particularly in Korea and the U.S., with premium indices and derivative trends favoring a bullish outlook for ETH.
Active buying pressure and optimistic derivative data could drive ETH’s price higher, with market participants viewing current levels as a buying opportunity.
Both Bitcoin and Ethereum exhibit promising growth, but investors are urged to exercise caution, acknowledging the potential for volatility and shifting market dynamics.
Floki's new highs: Coinbase listing pushes TVL to $189.8M
Key points:
Floki’s bullish breakout and $0.0002579 price surge followed a record $189.8M TVL and Coinbase listing.
Market sentiment strengthened as Open Interest rose 22.19%, backed by bullish on-chain metrics.
News - Floki [FLOKI] has gained significant attention following its Coinbase listing on the Ethereum network, propelling its Total Value Locked (TVL) to a record $189.8 million.
Trading at $0.0002579 (up 5.96% daily), its 24-hour trading volume surged by 148.19% to $1.39 billion, indicating strong trader interest.
Technically, FLOKI broke out of a bullish flag pattern on its weekly chart, supported by a 9- and 21-period Moving Average (MA) crossover signaling upward momentum. The Relative Strength Index (RSI) at 64.18 suggests room for further gains, reinforcing the likelihood of a continued rally.
More details - On-chain metrics add to the optimism, with Net Network Growth up by 2.53%, reflecting an expanding ecosystem. Token concentration improvements indicate growing investor confidence, though a 10.71% decline in large transactions suggests cautious behavior among bigger holders.
Investor sentiment remains robust, with Open Interest in FLOKI Futures contracts rising 22.19% to $39.25 million, highlighting increased speculative activity. The token’s bullish sentiment score and increased engagement further signal potential for continued growth.
To sum up - Overall, the combination of technical bullishness, strong network growth, and heightened investor enthusiasm positions FLOKI for sustained momentum, with the Coinbase listing acting as a catalyst for its upward trajectory.
However, caution from institutional players could temper short-term gains.
MicroStrategy surpasses Intel, Dell with bold $4.6 billion BTC plan
Key points:
MicroStrategy overtakes tech giants to secure a spot among the top 100 companies.
MSTR stock prices rise by double-digits.
News - MicroStrategy has cemented its place among the top 100 U.S. public companies, thanks to its bold Bitcoin [BTC] strategy. Recently, the company made a $4.6 billion BTC purchase and announced $1.75 billion in convertible notes, which was later expanded to $2.6 billion due to high demand.
This move boosted MicroStrategy’s market value, surpassing tech giants like Intel and Dell.
MicroStrategy’s stock saw extraordinary trading activity, outpacing Tesla and Nvidia in volume. Bloomberg analyst Eric Balchunas highlighted that its trading volumes even exceeded SPY, a leading ETF.
The company also influenced the broader Bitcoin market, with its activity contributing to a record $50 billion trading volume, comparable to the UK stock market’s average daily volume.
MicroStrategy’s big bet - The tech company now holds $31.51 billion in BTC after 12 acquisitions in 2024. Analysts project MicroStrategy’s Bitcoin reserves could reach 400,000, underscoring the asset's scarcity, with 4–5 million BTC considered lost and significant amounts held by entities like Satoshi Nakamoto and spot ETFs.
The firm’s stock has risen by 650% since January, closing at $473.83, with after-hours trading pushing it to $489.32.
MicroStrategy’s aggressive Bitcoin investments have not only propelled its stock price but also positioned it as a significant player in both the traditional financial and cryptocurrency markets, reinforcing Bitcoin’s growing role in institutional portfolios.
XRP hits $1.20 as SEC Chairman Gary Gensler prepares to depart
Key points:
SEC Chair to step down the same day Trump takes office.
Under Gensler, “18 percent of the SEC’s tips, complaints, and referrals were crypto-related.”
News - Gary Gensler, Chairman of the U.S. Securities and Exchange Commission [SEC], has announced his resignation effective 20th January, 2025, coinciding with Inauguration Day and Donald Trump’s return to office. This announcement has sparked celebration among crypto enthusiasts, given Gensler's contentious tenure marked by stringent regulation of the crypto market.
During his time at the SEC, Gensler pursued aggressive enforcement actions against major crypto firms, earning criticism for stifling innovation. Notable clashes included Coinbase suing the SEC for regulatory ambiguity and the high-profile legal battle against Ripple over XRP’s classification as a security.
Although the court ruled XRP was not a security in retail sales, it found institutional sales to fall under securities laws, giving the SEC a partial victory.
What’s more - Under Gensler, 18% of the SEC’s tips and complaints were crypto-related, despite crypto making up less than 1% of the U.S. capital markets. Critics, including Robinhood’s Chief Legal Officer Daniel Gallagher, argued that overregulation hindered the sector’s growth.
Gensler’s departure has buoyed sentiment within the crypto community. XRP, benefiting from renewed optimism, recently surpassed $1, reaching $1.20 and showing significant gains—up 9.63% in 24 hours and 56.19% over the week.
Gensler's exit may signal a turning point for the crypto market, with potential for more favorable regulatory approaches under new leadership.
More stories from the crypto ecosystem
Crypto scams uncovered
Phishing scams are the most common attacks on consumers. According to the FBI, more than 300,000 people fell victim to phishing scams in 2022 and 298,000 in 2023. Collectively, those people turned over $52.1 million to scammers in 2022 and more than $18.7 million in 2023.
The FBI found that in 2022, over $735.8 million was lost in romance scams, and in 2023, more than $652.5 million was stolen.
Thodex was a Turkish cryptocurrency exchange founded by Faruk Fatih Özer in 2017. Özer got investors to use his exchange, pooling over $2.2 billion. He promised investors free Dogecoin for putting their money on the exchange. In April 2021, the platform was scheduled for a 6-hour maintenance, which turned into a 5-day maintenance. But when the issue was probed, it was discovered that the founder had shut down the exchange and made away with 100,000 investors’ money.
Top 3 coins of the day
Solana (SOL)
Key points:
Solana’s trading volume increased in the last few days, pushing it to a new ATH
Its open interest also spiked, indicating investors’ confidence in the token.
What you should know:
Solana [SOL] has been outshining its competitors with a huge margin last week. This was the case as the token registered double-digit growth. This recent pump pushed the token to a new all-time high as well. Though the initial impressions looked in investors’ favor, a deep delve into the token’s scenario revealed a different story. AMBCrypto found that the token’s Relative Strength Index (RSI) entered the overbought zone. This meant that the chances of selling pressure going up were high. On top of that, the token’s Chaikin Money Flow (CMF) also registered a downtick. At the time of writing, SOL’s RSI had a reading of 77. Whenever that happens, it indicates that investors were selling their holdings. Generally, a sell-off is often followed by a correction. In case of a price correction, SOL might again drop to $235 in the coming days.
Ripple (XRP)
Key points:
XRP’s weighted sentiment increased, indicating a rise in bullish sentiment.
The token’s MVRV also shot up, which might cause trouble in the coming days.
What you should know:
XRP displayed impeccable performance in the last few days with its massive gains. The tokens price surged by more than 70% in the last week. Investors were enjoying profits as the token's value increased by 25% over the last 24 hours. At the time of writing, XRP was trading at $1.40. As per our analysis of XRP’s daily price chart, its MA cross indicator revealed a clear bullish advantage in the market. This was the case as the 9-day MA was well above the 21-day MA, suggesting a continued price increase. However, things might change in the coming days. The token’s price touched the upper limit of the Bollinger Bands. Whenever that happens, it indicates that the chances of a price per correction are high.
Avalanche (AVAX)
Key points:
Avalanche’s trading volume increased with its rising price.
However, the token’s weighted sentiment dropped.
What you should know:
Avalanche [AVAX] has caught investors off guard with its stunning performance. Though this recent uptick could be attributed to the market condition, the token did manage to push its price by 10% in the last 24 hours. This recent pump pushed the token above a crucial resistance of $35. At the time of writing, the token was trading at $36.94 with a market capitalization of over $1.03 billion. The token’s Money Flow Index (MFI) had a value above 70, meaning that investors were adding money for AVAX. The Chaikin Money Flow (CMF) also registered an uptick, indicating that the chances of Avalanche’s price going up were high. However, in case of a price correction, AVAS might drop to its support at $32.
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