Ethereum is set to undergo a major upgrade called “Dencun” on March 13th. This upgrade will introduce a mechanism to significantly reduce transaction fees on Layer 2 to almost zero. It is expected to attract more users and developers to the platform. Meanwhile, the price of Ethereum has touched the $4,000 mark, its highest level in 2 years.
The U.S. SEC has postponed its decision on the Spot Ethereum ETFs proposed by Blackrock and Fidelity. There are lingering concerns regarding the proof-of-stake mechanism and market manipulation issues.
Yahoo Finance revealed that the cumulative trading volume of Spot Bitcoin ETFs has surpassed $100 billion, achieved in less than two months. This figure exceeds the trading volume of gold ETFs over the past five years.
BlackRock has filed with the U.S. SEC to seek approval for its Global Allocation Fund to invest in Spot Bitcoin ETFs. BlackRock, as the fund manager, aims to generate maximum returns while maintaining low risk.
The Spot Bitcoin ETF has assets totaling $54 billion under management, representing approximately 4% of the total Bitcoin supply. Additionally, the combined holdings of Bitcoin ETFs, totaling 9, exceeds the amount held in the GBTC
The State Pension Board of Arizona in the United States is currently considering a proposal to support the addition of a Bitcoin ETF to the investment portfolios of the state’s pension funds. This proposal involves two separate portfolios. It has already passed the initial review stage and awaits a second round of consideration before investment can proceed.
CryptoSlate has revealed that the volume of Bitcoin flowing out of exchanges reached its highest level since 2021. On March 1st alone, there was a withdrawal worth over $2 billion of Bitcoin, indicating a continuous downward trend in supply on exchanges.
Microstrategy aims to raise $600 million by issuing convertible bonds to fund additional Bitcoin purchases. Currently, the company holds 193,000 BTC, with a total value of $13 billion.
The U.S. SEC has delayed its decision on approving Blackrock’s Spot Bitcoin ETF options on the Nasdaq market. The decision is now expected to be made by April 24.
The total value locked in DeFi protocols has surpassed $100 billion for the first time in nearly two years, reaching $112.67 billion as of May 11, 2022. Among them, lending protocols hold the highest share, followed by decentralized exchanges (DEX), collateralized debt positions (CDPs), with restaking protocols trailing behind.
Weekly Technical Analysis: 12 – 18 Mar 2024
Bitcoin (BTC)
BTC has surged to new all-time highs, with expectations of sustained buying pressure leading up to the Bitcoin halving. This movement may exhibit a slight upward trend, with resistance anticipated at 2,640,000 THB. However, short-term corrections should be monitored, with support expected around 2,200,000 THB, representing the previous low.
Support : 2,200,000 THB Resistance : 2,640,000 THB
Support : 57,500 USD Resistance : 76,000 USD
Ethereum (ETH)
ETH has surged, reaching the 142,000 THB mark. There is attention on profit-taking from the upgrade, potentially driving prices higher. The target resistance is set at 128,000 THB, with a chance to test previous highs. However, it’s crucial to monitor support levels, especially if there’s strong correction momentum, with support expected at around 150,000 THB.
Support : 128,000 THB Resistance : 150,000 THB
Support : 3,300 USD Resistance : 4,600 USD
Gala (GALA)
GALA has surged by 66.83% in the past week, reversing its trend to an upward trajectory. The trading strategy involves buying on dips, with an initial support at the 2.4 THB level. Selling for profits is anticipated at the first resistance of 3.4 THB. Caution is advised for potential price volatility following the strong upward adjustment.
Support : 2.4 THB Resistance : 3.4 THB
Support : 0.068 USD Resistance : 0.096 USD
Baby Doge (BABYDOGE)
BABYDOGE has surged by 59.96% in the past week, driven by buying momentum amidst profit-taking in meme coins. Caution is advised for potential volatility, with a breach below the 0.00000010 THB level possibly indicating a loss-cutting point. Resistance is currently positioned at 0.00000015 THB.
Support : 0.00000010 THB Resistance : 0.00000015 THB
Trading and Investment Considerations For The Week
The non-farm payroll figures were better than expected, but the job hiring numbers were lower than anticipated. This had a neutral impact on Bitcoin prices, despite the dollar showing a slight appreciation.
The key highlight of this week falls on Tuesday, March 12th, with the announcement of the CPI figures. This may influence the decisions of the Federal Reserve in their upcoming meeting. The market is expecting a CPI of 3.1%, the same as the previous month. If the figure comes in lower than this, it could have a positive impact on the market.
Coins in the gaming and metaverse categories like GALA, MANA, and SAND have shown strong upward movements during the past week. The overall trend has shifted back to bullish. However, it’s advisable to wait for price retracements before considering accumulation.
Keep an eye on the Ethereum upgrade to version Dencun on March 13, which is expected to benefit Layer 2 solutions by significantly reducing transaction fees. Coins worth watching include OP and ARB, which have yet to see significant buying pressure.
The market continues to rotate among different groups without simultaneous buying pressure. The strategy remains with gradual accumulation in groups of coins that have previously shown upward adjustments but have since retraced. However, since BTC remains at high levels, an altcoin season has yet to emerge.
Reference:
https://cryptopotato.com/ethereums-dencun-upgrade-set-to-drive-near-zero-transaction-fees/
https://www.theblock.co/post/281381/spot-bitcoin-etf-cumulative-trading-volume-crosses-100-billion
https://coingape.com/blackrock-targets-bitcoin-etf-expansion-for-allocation-fund/
https://cointelegraph.com/news/arizona-senate-consider-bitcoin-etfs-retirement-portfolios
https://cointelegraph.com/news/bitcoin-daily-withdrawals-records-2b-exchanges\
https://cointelegraph.com/news/microstrategy-raise-600-million-via-convertible-note-buy-more-bitcoin
https://www.theblock.co/post/280657/defi-tvl-breaks-100-billion-for-first-time-since-may-2022
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