CryptoQuant revealed that the amount of Bitcoin on exchanges is at 2,825,703 BTC, down from approximately 3,039,000 BTC in January 2024. This marks the largest volume decrease in 3 years. Meanwhile, Coinshares disclosed that in May, digital asset fund inflows amounted to as much as 2 billion USD, mainly driven by Bitcoin purchases from institutional investors.
The Block reported that the average gas fee on Ethereum Mainnet fell below 3 gwei (the smallest unit of Ethereum), and is at its lowest since 2020. This has resulted in the lowest Ethereum burn rate in 12 months. At the same time, Bitcoin miners’ revenue has been declining for 2 consecutive months since the Bitcoin Halving in April.
The US SEC has dropped its investigation into Ethereum as a security, and they will not charge Ethereum sales as securities transactions. This decision benefits other cryptocurrencies (altcoins) that might establish exchange-traded funds (ETFs) in the future.
Previously, the US SEC was considering approving a Spot Ethereum ETF, reflecting that Ethereum has the status of a commodity, similar to Bitcoin which already has spot ETFs.
5 fund management companies, such as VanEck, BlackRock, Grayscale, Invesco Galaxy Digital, and Fidelity, submitted amendments to their S-1 documents to the US SEC last Friday, increasing their chances of approval by early July.
Standard Chartered Bank plans to launch a Bitcoin and Ethereum trading desk under its FX trading unit to support transactions in these two coins by institutional investors. This move will position Standard Chartered among major global financial institutions trading in cryptocurrencies.
MicroStrategy announced that it had sold 800 million USD worth of convertible senior notes, and they are aiming to purchase an additional 11,931 BTC with 786 million USD at a price of 65,883 USD each.
The Australian Securities Exchange (ASX) launched the first Spot Bitcoin ETF from VanEck under the ticker symbol – VBTC. This ETF is a feeder fund investing in the VanEck Bitcoin Trust (HODL) in the US stock market.
Earlier, Cboe Australia, the second-largest stock exchange in Australia, approved the Monochrome Bitcoin ETF (IBTC) earlier this June.
Weekly Technical Analysis: 18 – 24 June 2024
Bitcoin (BTC)
BTC prices have been on a downward trajectory due to a lack of new positive factors. There is a chance of further decline to test the support level at 60,000 USD. If it breaks below this level, it might drop to test the support at 56,000 USD. If it falls below this level too, then it will be necessary to cut your losses as the trend may turn bearish. The Relative Strength Index (RSI) indicates an oversold condition, suggesting a potential recovery cycle. However, BTC needs to surpass 72,000 USD to revert to a bullish trend.
- Support: 2,100,000 THB / 56,000 USD
- Resistance: 2,600,000 THB / 72,000 USD
Ethereum (ETH)
ETH is still awaiting clarity on the approval of the Spot Ethereum ETF. The short-term trend continues downward, potentially reaching 3,300 USD. If it falls below this level, it is recommended to cut your losses as it may lose its upward momentum. The resistance level is 4,000 USD. If ETH breaks through this, it could test the previous high at 5,000 USD.
- Support: 104,000 THB / 3,300 USD
- Resistance: 144,000 THB / 4,000 USD
Fetch.AI (FET)
FET prices increased by 5.47% over the past week, showing signs of recovery. The market pullback can be used as a buying point; focus on the support level at 1.10 USD. If it holds, the price can recover to its previous support, which is now the resistance at 1.90 USD. If it breaks below the support level, then it is advisable to cut your losses, as it means the market condition remains weak.
- Support: 40 THB / 1.10 USD
- Resistance: 72 THB / 1.90 USD
SingularityNET (AGIX)
AGIX prices increased by 4.35% last week, driven by buying interest following the announcement of the new ASI token, a combination of three AI projects. The pullback above 0.4650 USD can be used as a buying point, with the first profit-taking resistance at 0.7600 USD. The main trend remains on an upward trajectory.
- Support: 17 THB / 0.4650 USD
Resistance: THB / 0.7600 USD
Trading and Investment Considerations For The Week
The continuous strengthening of the US Dollar Index (USDX) maintains pressure on Bitcoin prices. Additionally, the buying volume in Spot Bitcoin ETFs in the US, Hong Kong, and Australian stock markets is not sufficient to boost the market. This trend is expected to remain sluggish, but with limited downsides.
Ethereum, which has been in a positive news cycle, such as the US SEC dropping its investigation into classifying it as a security, and updates from applicants for the Spot Ethereum ETF, remains a key highlight. This week, speculative buying in Ethereum might increase if signs emerge that the Spot Ethereum ETFs could trade on the US stock market next week as expected. Coins in the liquid staking category, used to solve liquidity issues, might benefit from this development.
The US economic figures for the first quarter will be announced this Thursday. It’s expected to show 1.4% growth from the previous quarter’s 1.3%. On the same day, there will be a debate between the US presidential candidates. Positive policies towards the cryptocurrency sector will likely benefit the overall market.
For the weekly trading strategy, if there are no positive factors supporting the market, wait to buy Bitcoin and Ethereum at their long-term support levels of 60,000 USD and 3,000 USD, respectively. If there is positive news, use a follow-buy strategy, which might be a turning point towards a bullish market.
References
- https://cointelegraph.com/news/spot-ethereum-etf-ether-eric-balchunas-bloomberg
- https://cointelegraph.com/news/sec-chair-spot-ether-etf-s1-approvals-summer
- https://cryptoslate.com/cboe-exec-says-solana-etfs-unlikely-without-futures-market-or-regulatory-clarity/
- https://www.theblock.co/post/300138/bernstein-bitcoin-price-target-2025
- https://cryptopotato.com/bitcoin-miners-are-selling-again-cryptoquant/
- https://cointelegraph.com/news/microstrategy-raise-500-million-stock-buy-bitcoin
Disclaimers
- Cryptocurrencies and digital tokens are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to their own risk profile.
- Past returns or performance of digital assets do not guarantee future returns or performance.
Remark: views, information, knowledge and opinions are considered as contents that come from individuals involved. They do not constitute an expression of Bitazza and its employees. Neither email nor content presented constitutes the investment advice.
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