Bitcoin Price Craters as BTC/USD Bears Target $42k
Ethereum Gas problem persists
Binance Smart Chain (BSC) a threat to Ethereum
Tether Limited settles with the New York Office of the Attorney General for $18.5 million
Trending News: MicroStrategy and Square buys more Bitcoin, Binance Smart Chain soaring as Ethereum Struggles with Gas Fees
The Bitcoin price is dominating headlines.
Following the plunge of the first half of the week, investors are jittery, unsure how Bitcoin will react in the coming few weeks.
The thing is, Bitcoin, has over time, evolved to be a reliable store of value.
Megaliths are already invested. Some bought at near peaks and continue to double down on digital gold.
The Bitcoin Institutional FOMO
Take, for example, MicroStrategy. The business intelligence firm listed at NASDAQ is unfazed by falling BTC prices.
At the pits of this week’s low, the CEO, Michael Saylor, announced their over $1 billion purchase of the coin.
Around the same time, Square Inc.—the parent company of Cash App whose CEO is also the founder of Twitter, bought $177 million worth of BTC.
Both companies are adding to their positions. In a statement, Square said it was a demonstration of their commitment to Bitcoin.
However, the crypto world is preparing for another “heavy” investment. After Tesla’s $1.5 billion purchase of Bitcoin, Dubai’s Khurram Shroff, through the IBC Group, of which he’s the chair, has pledged 100k BTC (or $5 billion) investment.
This will be to set up a Miami 2.0 Blockchain Strategy Foundation.
The aim is to accelerate the use of cryptocurrency.
Ethereum Gas Fees Trouble Persists.
As of Feb 24, the average transaction fees in the smart contracting network stood at $20.
If ETH/USD prices rise, Gas fees will increase, but more will still lock their assets in DeFi. Supporters say Layer-2 adoption is the only way out even though Ethereum Killers are closing in for the kill.
The Binance Smart Chain (BSC), for instance, is transacting more transactions at relatively lower fees even though there are concerns about decentralization. All of BSC’s validators are controlled by Binance.
According to Anthony Sassano, a resolution of Gas fees is enough to thrust ETH prices towards $10k.Bitcoin Price Craters as BTC/USD Bears Target $42k
Outside of the top-10, UNUS SED LEO of Bitfinex and several DeFi tokens like Sushi and the Synthetix Token (SNX) were in the green. Notably, UNUS SED LEO is firm after the NYOAG settled with Tether Limited—the issuer of USDT, for $18.5 million.
Nonetheless, Bitfinex is barred from offering services to NY residents.
Bitcoin Price Prediction
The BTC price is bearish, cooling off after months of near perpendicular price gains. Specifically, the coin is down five percent week-to-date, paring losses on the last day.
Candlestick arrangement in the daily chart shows that sellers are in control.
Although prices are stable above the middle BB, risks of confirmation of Feb 22 and 23 bear candlesticks remain high.
From volumes analysis, bears are in control provided BTC/USD prices don’t tear above Feb 22 highs with relatively high trading volumes exceeding those of Feb 23 (Coinbase data).
Accordingly, every high may be a liquidation opportunity for aggressive traders.
A break before the middle BB confirms sellers of Feb 22, triggering more panic as BTC/USD is likely to crater towards $42k and later $30k.
A revival above $58k may see the BTC price reach $62k and later $93k in a bull trend continuation pattern.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies.