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PEPE breakout fuels profit-taking
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Profit-taking looms as PEPE breaks record high
Key points:
PEPE reached a new all-time high (ATH) of $0.00002754, buoyed by strong inflows and positive investor sentiment.
Holding the $0.00002334 support level is critical to maintaining its bullish trajectory, with a potential downside to $0.00001793 if it fails.
News - The popular meme coin PEPE has surged to a new all-time high of $0.00002754, reflecting continued bullish momentum despite growing concerns of profit-taking. Investor enthusiasm has played a key role in sustaining PEPE’s price near its ATH, even as 38% of active addresses remain in profit, potentially signaling increased sell pressure.
Renewed buying interest supports price - Technical indicators highlight strong inflows into PEPE, particularly with the Chaikin Money Flow (CMF) rising above the neutral line for the first time in weeks. This uptick reflects renewed investor confidence, providing the coin with additional support amid heightened market activity.
The CMF’s positive trend underscores buying interest that could help PEPE extend its rally. However, any deviation from this trajectory could result in increased volatility, as profit-taking may escalate.
Price prediction: Critical support levels - PEPE’s ability to sustain its bullish momentum hinges on holding the $0.00002334 support level. This foundation could enable the altcoin to challenge its ATH and potentially attract further investor interest.
A breakout beyond $0.00002754 would solidify its uptrend, paving the way for additional gains. Conversely, a failure to hold $0.00002334 could result in a decline toward $0.00001793, potentially invalidating its current bullish setup.
What’s next? - Investors should closely monitor profit-taking trends and key support levels, as sustained inflows will be crucial for maintaining upward momentum. For now, PEPE’s resilience keeps it in the spotlight, with its trajectory dependent on market dynamics in the coming days.
Bitcoin targets $150K as Derive highlights market optimism
Key points:
Derive research indicates a 6% probability of Bitcoin reaching $150,000 by January 31, alongside a 10.5% chance for Ethereum to hit $6,000.
Market consolidation and stable 25 delta skews suggest cautious optimism in the derivatives market.
Bitcoin eyes $150,000 amid market stability - The derivatives market continues to signal a slim yet significant possibility of Bitcoin achieving a new milestone of $150,000 by January’s end, following its historic climb above $100,000. According to Sean Dawson, head of research at DeFi derivatives platform Derive, traders have maintained a cautious outlook despite the market’s strong performance.
“We continue to see a 10.5% probability of Ethereum reaching $6,000 and a 6% likelihood for Bitcoin surpassing $150,000,” Dawson said, noting that the 25 delta skew—a key indicator of market bias—has remained stable, showing no major shifts in sentiment.
What’s driving the momentum? - Bitcoin’s recent ascent can be attributed to significant institutional activity, including ETF flows from major issuers like BlackRock and Fidelity. BlackRock’s IBIT options, along with MicroStrategy’s Bitcoin acquisitions, have played a crucial role in boosting confidence.
Additionally, President-elect Donald Trump’s pro-crypto stance, including plans for a U.S. Bitcoin reserve, has reinvigorated both retail and institutional interest. With Bitcoin firmly in price discovery mode, traders remain focused on whether the asset can sustain its momentum above $100,000.
What’s next? - As Bitcoin stabilizes around $99,000, market experts suggest that the upcoming weeks will be crucial. While consolidation over the weekend has reduced volatility, the path forward remains uncertain.
Singapore-based QCP Capital commented on the binary nature of Bitcoin’s current market position: “The spot price could either be driven higher, or selling pressure could push it back below $100,000.”
Whether Bitcoin will cross $150,000 or face a corrective pullback remains to be seen, but the asset has undeniably entered uncharted territory, capturing the attention of global investors.
MicroStrategy acquires $2.1 billion in Bitcoin, total holdings surpass 423K BTC
Key points:
Record purchase - MicroStrategy added 21,550 BTC worth $2.1 billion last week at an average price of $98,783 each.
Massive holdings - The company now owns 423,650 BTC, equivalent to more than 2% of Bitcoin’s total supply.
News - MicroStrategy, led by Executive Chairman Michael Saylor, has further cemented its position as the largest corporate Bitcoin holder with its latest purchase of 21,550 BTC. The acquisition, funded by the sale of $2.13 billion worth of shares through its ATM facility, brings the firm’s total Bitcoin reserves to 423,650 BTC—worth nearly $42 billion at current prices.
The purchase comes amid Bitcoin’s historic rally above $100,000, which was driven by robust institutional inflows and growing U.S. investor interest. U.S. spot Bitcoin ETFs saw inflows totaling $2.73 billion last week, reflecting heightened demand for crypto investments. MicroStrategy’s move signals continued confidence in Bitcoin’s long-term value as a treasury asset.
Market impact - MicroStrategy’s acquisition may have contributed to Bitcoin’s price action as it surged past $100,000 last week. However, the firm’s shares dipped 1% in premarket trading, aligning with Bitcoin’s slight pullback to $99,000.
In parallel, other corporations are also doubling down on Bitcoin. Riot Platforms announced a $500 million convertible note offering, with a portion allocated for BTC purchases. These developments underscore the ongoing institutionalization of Bitcoin as a key asset in corporate treasuries.
What’s next? - MicroStrategy still has $9.19 billion remaining in its ATM share sales facility, hinting at potential future Bitcoin acquisitions. As Bitcoin hovers near $100,000, the market’s next focus will be whether it can sustain this milestone and continue its rally. Analysts will also closely monitor institutional movements, particularly in the ETF space, as they play a growing role in shaping market sentiment.
El Salvador revisits Bitcoin law for IMF deal
Key points:
Voluntary Bitcoin acceptance proposed - Merchants may no longer be required to accept Bitcoin as payment, making its usage optional rather than compulsory.
$3.3 billion loan package - El Salvador is negotiating with the IMF, World Bank, and Inter-American Development Bank for a funding agreement, with Bitcoin law revisions as a key condition.
News: Bitcoin law adjustments for financial aid - El Salvador is in talks to modify its Bitcoin law to secure a $3.3 billion funding deal. The proposed changes would make Bitcoin acceptance voluntary for merchants, aligning with conditions set by the International Monetary Fund (IMF).
The legal revision comes after consistent warnings from the IMF about the risks of El Salvador’s Bitcoin strategy, which granted Bitcoin the same status as the U.S. dollar in 2021. The government’s current Bitcoin Treasury holdings are worth approximately $600 million at Bitcoin’s recent price of $100,000.
IMF’s role and broader financial reforms - The IMF has also required commitments to reduce El Salvador’s budget deficit to 3.5% of GDP within three years, increase reserves, and pass an anti-corruption law. The agreement, expected to conclude in a few weeks, could provide financial stability while addressing the IMF’s concerns about the nation’s economic approach.
What’s next? - While the Bitcoin law adjustments may help secure international funding, their impact on Bitcoin adoption in El Salvador is expected to be minimal. A January 2023 survey revealed that 88% of Salvadorans hadn’t used Bitcoin that year. Beyond this, El Salvador’s National Commission of Digital Assets (CNAD) continues to work on a broader regulatory framework for cryptocurrencies, aiming for sustainable growth in its digital economy.
More stories from the crypto ecosystem
Did you know?
The largest NFT sale ever recorded took place in 2021 when a digital artwork by artist Beeple, titled "Everydays: The First 5000 Days," was sold at Christie's auction for $69.3 million, marking a pivotal moment in the NFT market.
The first decentralized prediction market platform, Augur, launched in 2015, allowing users to create and trade predictions on the outcome of real-world events using blockchain technology.
In 2019, the Bitcoin Lightning Network reached a capacity of over 1,000 BTC, showing significant growth in its potential to process microtransactions and support the scaling of Bitcoin for real-world use cases.
Top 3 coins of the day
Pepe (PEPE)
Key points:
At press time, PEPE was trading at $0.00002589.
It was one of the top trending cryptocurrencies over the last 24 hours, as per CoinMarketCap.
What you should know:
The daily chart reflected a bullish trend for PEPE. The Parabolic SAR dots were positioned below the candlesticks, indicating upward momentum. Additionally, the MACD histogram showed increasing green bars, suggesting strengthening bullish sentiment, with the MACD line moving above the signal line. Volume levels indicated heightened investor activity, further supporting the upward trajectory. Immediate resistance lies near $0.00002754 (the intraday high), while support is at $0.00002437 (the intraday low). Traders should monitor these levels as a breakout above the resistance could signal extended gains, while a dip below the support might suggest a reversal.
Floki (FLOKI)
Key points:
At press time, FLOKI was trading at $0.000026201.
Increasing by approximately 1.35% over the last 24 hours, it was one of the biggest gainers, as per CoinMarketCap.
What you should know:
FLOKI was seen to be in a bullish trend on the daily chart, with the Bollinger Bands expanding, signaling increased price volatility. The price was trading near the upper band, indicating a potential overbought condition in the short term. The Awesome Oscillator (AO) formed green bars, highlighting positive momentum and a shift towards bullish sentiment. Volume levels also saw a modest uptick, reflecting growing interest from market participants. Immediate resistance is likely at $0.00002730, while the nearest support lies around $0.00002480, corresponding to the midline of the Bollinger Bands. A sustained break above resistance could propel further gains, while a drop below the midline may signal a correction.
Gala (GALA)
Key points:
At press time, GALA was trading at $0.05603.
Decreasing by approximately 7.34% over the last 24 hours, it ranked among the biggest losers, as per CoinMarketCap.
What you should know:
On the daily timeframe, GALA was recently under selling pressure, as reflected in its price drop. The RSI stood at 70.74, suggesting that while it was no longer in overbought territory, it was still close to elevated levels, which could lead to further consolidation. The SMA (9) line remained below the price, signaling that bullish momentum was not entirely exhausted. However, declining trading volumes in the last few sessions hinted at fading buying interest. Immediate support lies near $0.05547, which aligns with the SMA (9), while resistance is anticipated around $0.06046, corresponding to the daily high. Traders should monitor these levels closely, as a break below support could signal an extended downtrend.
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