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On-chain Metrics Explain Why Bitcoin is Holding Firm Between $96K and $98K Without Crashing to $90K

Albert Brown
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On-chain Metrics Explain Why Bitcoin is Holding Firm Between $96K and $98K Without Crashing to $90K

Glassnode’s on-chain metrics explain why Bitcoin is holding steady between $96K and $98K despite fears of a potential decline to $90K.

In a recent tweet, Glassnode emphasized the advantages of its Cost-Basis Distribution (CBD) model over traditional technical indicators when analyzing Bitcoin’s price behavior. 

While conventional tools like moving averages track broad market trends, the CBD model offers a more precise view of investor actions by quantifying Bitcoin’s supply at specific price levels.

Bitcoin Finds Strong Support Between $96K and $98K

Traditional indicators like the 7-day Simple Moving Average (SMA) offer a general sense of market direction but often miss crucial price-specific details. For example, while the 7-day SMA is currently near $98,180, Glassnode points out that CBD data reveals 120,000 BTC were accumulated in the $96K to $98K range.

This robust accumulation highlights why this zone has become a stronger support level for Bitcoin. For context, Bitcoin recently experienced a flash crash to $94,300 but rebounded almost immediately back into the $97K range. Since then, the price has generally stayed between $96,000 and $98,000 for most of today.

Liquidity Gaps and Volatility Risks

The CBD model also helps identify liquidity gaps, which are essential for understanding potential price volatility. Glassnode’s 3-month view shows that Bitcoin’s supply below $96K is increasingly thinning, with a critical support level emerging around $87K.

As a result, the firm warns that if Bitcoin’s price drops below $96K, short-term price instability could rise sharply due to the lack of liquidity to absorb selling pressure.

This observation is further supported by data from IntoTheBlock which shows that Bitcoin is currently supported by 1.44 million addresses holding 1.47 million BTC, with an average purchase price of $97K. 

Bitcoin holder clusters
Bitcoin holder clusters

This is the most significant support zone for BTC. Below this level, 403,510 addresses are holding 204,840 BTC purchased at an average price of $94K.

On the resistance side, 102,170 wallets are holding 101,270 BTC. The resistance becomes even more limited above this zone, with the next level showing only 10,001 wallets holding 28,180 BTC, bought at an average price of $98,720.

The Bottom Line 

In essence, a Bitcoin price closing above $97,000 could signal a potential surge toward the $99K level. Conversely, a close near $96K could trigger a test of the $93K support, where further declines may follow due to the lack of strong support below.

This data emphasizes the importance of using on-chain metrics to gain a clearer understanding of Bitcoin’s market dynamics. It offers traders a more informed approach to navigating Bitcoin’s price movements beyond traditional technical analysis.

Analyst Says Shiba Inu Now Retesting the Ichimoku Cloud After Rejection

Mark Brennan
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Analyst Says Shiba Inu Now Retesting the Ichimoku Cloud After Rejection

Shiba Inu has corrected considerably in the past 24 hours, with an analyst suggesting the meme coin is now retesting the Ichimoku Cloud.

In the latest Shiba Inu news, the asset has faced massive downsides amidst a broader market capitulation. For context, the dog-themed meme coin is down 13% in the past 24 hours following Bitcoin’s brief drop below $95,000 on Monday.

Shiba Inu traders saw substantial liquidations, as $12.6 million worth of positions were affected. However, analyst Cantonese Cat has suggested that Shiba Inu’s capsize results from a rejection from a strong resistance.

Shiba Inu Rejected from Fibonacci Extension

In a Monday analysis, Cantonese Cat stated that Shiba Inu is at a major crossroads following yesterday’s dump. The analyst tied the market capitulation to a rejection from the 0.618 Fibonacci extension around $0.000031247.

Notably, Shiba Inu faced strong resistance on Sunday when it surged to the $0.00003343 price zone. The meme coin’s bullish outburst could not surmount the supply zone, with the asset correcting over 16% from the level.

With the rejection, Cantonese Cat shares a SHIB weekly chart suggesting that Shiba Inu is now retesting the Ichimoku Cloud. Notably, the Ichimoku Cloud shows market trends and major support and resistance levels.

Shiba Inu Ichimoku Cloud

For context, the analyst had earlier predicted a break above the Ichimoku Cloud on the weekly timeframe. The Crypto Basic reported last month that Cantonese Cat speculated a break above the indicator, suggesting a bullish momentum.

Shiba Inu did follow his assertion, but the 0.618 Fibonacci extension impeded further upsides. Market observers are now monitoring Shiba Inu’s price action at the weekly Ichimoku Cloud.

What Next for Shiba Inu?

Meanwhile, technical analysis shows mixed indications for Shiba Inu. For instance, the relative strength index (RSI) on the SHIB 4-hour timeframe stands at 30.76, close to the oversold territory. This suggests that Shiba Inu could rebound from the dips and target higher prices.

However, the MACD indicator remains bearish. With the MACD line at 0.00000083 and the signal line at 0.00000017, the huge gap between them suggests downward pressure still presides.

Shiba Analysis
Shiba Analysis

At press time, Shiba Inu changes hands at $0.00002695 with a market cap of $15.8 billion.

Here’s What Triggered the Latest Bitcoin Liquidation Event

Albert Brown
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Here’s What Triggered the Latest Bitcoin Liquidation Event

Market experts identify the triggers of the latest Bitcoin and crypto liquidation event, with questions of manipulation emerging.

The cryptocurrency market recently experienced its largest liquidation since September 2021, as Bitcoin saw a sharp 10% flash crash. Within just 12 hours, BTC plunged from $103,647 to $92,092, only to recover swiftly.

Despite the rebound, the event triggered a cascading effect that impacted the broader market, leading to severe losses for altcoins and wiping out over $1.7 billion from nearly 584,000 traders within 24 hours.  

While sudden crashes in crypto markets are not unusual, this specific event raised questions due to certain peculiar characteristics. 

Pseudonymous Croatian analyst Ltrd highlighted anomalies, pointing out that traders on Coinbase began selling aggressively about an hour before the crash began. This pre-dump activity created selling pressure, which drove prices into zones where overleveraged positions were forced to liquidate.  

Early Coinbase selloffs
Early Coinbase selloffs

Market Conditions Leading to the Crash  

According to Ltrd, two important indicators pointed to an overheated market: spiking funding fees and a sharp increase in open interest. These metrics revealed that traders were heavily leveraged, setting the stage for a massive sell-off once a breach on price thresholds occurred.  

The liquidation cascade that followed acted as a domino effect, with stop-losses and liquidations bolstering the crash’s intensity. For perpetual swaps exchanges, this chain reaction made the final price drop even more substantial, especially within minutes.  

Anomalies Observed

Interestingly, certain cryptocurrencies behaved unusually during the crash. For instance, Ethereum (ETH) showed strong buying pressure after the dip, indicating potential accumulation by large players. 

Conversely, XRP experienced a severe sell-off due to its relatively low liquidity, despite its large market cap. XRP’s thin trading volume usually makes it prone to both sharp gains and losses. Notably, XRP crashed 18% from $2.4 to $1.96 in less than four hours.

Market impact on XRP
Market impact on XRP

In addition, unexpected volume spikes were noted in assets like Cardano (ADA), USDC, and FDUSD during the crash. These irregularities have triggered concerns about market manipulation, especially concerning the pre-crash activity on Coinbase.  

Crypto volumes
Crypto volumes

Manipulation or Coincidence?  

The timing of the aggressive sell-off on Coinbase has led some traders to speculate about possible manipulation. 

One Bitcoin trader alleged that centralized exchanges (CEXs) might have engaged in “liquidation hunting,” where platforms intentionally trigger stop losses to profit from the ensuing chaos. The trader called on Coinbase to disclose its main trading wallet addresses and clarify its role.  

However, not all agree with this. Another proponent pointed out that Coinbase itself suffered from the crash, as its stock price dropped nearly 10%, suggesting that the sell-off might have been from platform traders rather than the exchange itself.  

Speaking at the event, analyst Ash Crypto echoed Ltrd’s commentary. However, he noted that large-scale liquidations have a cleansing effect on the market. According to him, it forces weak hands out of the market, creating opportunities for “smart money” to buy at discounted prices.

SkyBridge Capital’s Anthony Scaramucci Says China Will “Be Back in the Bitcoin Game” in 2025

Elendu Benedict
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SkyBridge Capital’s Anthony Scaramucci Says China Will “Be Back in the Bitcoin Game” in 2025

Anthony Scaramucci, pro-crypto businessman and SkyBridge managing partner, predicts China to embrace Bitcoin before the end of 2025.

US President-elect Donald Trump’s impact on the ecosystem has been massive since his campaign days. Trump adopted digital assets while vying for the November 5 election win, promising to create a US strategic reserve of the asset.

Following his win, this idea has gained prominence. Although the concept remains speculative, other countries have noted Trump’s Bitcoin stance.

For context, lawmakers in Canada, Brazil, and Russia have proposed adopting Bitcoin as a treasury reserve asset. Public firms globally have also stepped up their exposure to the pioneering cryptocurrency, spurring its latest push past $100,000.

China to Enter the Bitcoin Game: Scaramucci

In the latest development, Scaramucci said the surging adoption will continue. Speaking at the Bitcoin MENA 2024 Conference today, the Wall Street business stated that the US Bitcoin campaign will pull China into the “Bitcoin game.”

He insisted that China would either adopt Bitcoin as a strategic reserve asset, as other countries would, or officially allow crypto mining. Notably, China accounts for over 10% of the global mining capacity despite banning crypto-related activities within its borders.

Notably, Scaramucci compared the United States’ entrance into Bitcoin to a “match-selling race.” The SkyBridge managing partner stated that it was impossible for the US to foray into Bitcoin without attracting the attention of other nations.

“You are not going to be in a position in the world… where the US is moving towards Bitcoin, and you are not moving towards Bitcoin,” Scaramucci remarked.

Adoption Impact on Bitcoin

Meanwhile, the growing embrace of Bitcoin among nations and public entities has marked a new phase of the asset’s mainstream adoption. For context, Bitcoin had faced criticism in the past. However, the tides are turning in its favor following Trump’s endorsement.

Notable analyses have suggested that the adoption curve would spur a massive Bitcoin price uptrend. For instance, Galaxy Digital CEO Novogratz speculated that Bitcoin would trade at $500,000 per coin if the US established its proposed Bitcoin stockpile.

Furthermore, analysis from IntoTheBlock and Bernstein asserts a surge past $200,000 before the end of next year if the reserve prospect materializes. In the meantime, Bitcoin trades at $97,935, down less than 1% in the past 24 hours.

CryptoCom Partners Deutsche Bank to Enhance Its Corporate Banking Support in APAC 

Lele Jima
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CryptoCom Partners Deutsche Bank to Enhance Its Corporate Banking Support in APAC 

Crypto.com announces a partnership with Deutsche Bank to enhance its corporate banking support within the Asia-Pacific (APAC) region.

The exchange announced the development today, indicating that Deutsche Bank will be its corporate banking partner in the region. According to the announcement, the partnership will also see Deutsche Bank provide additional banking support for Crypto.com in the future. 

This collaboration marks a new milestone for the crypto exchange. Notably, it will gain access to advanced banking tools to enhance its operational efficiency and corporate banking capability within the region. 

CryptoCom and Deutsche Execs React 

Karl Mohan, Crypto.com’s Global Head of Banking Partnerships, highlighted the significance of the latest development. 

He said the partnership aligns with the exchange’s commitment to providing adequate user security and complying with global regulators. He added that the alliance would also strengthen its global presence. 

“Collaborating with Deutsche Bank providers further cements our already strong presence globally. We are excited to build on this with the support of Deutsche Bank,” Mohan remarked.  

Kriti Jain, Deutsche Bank’s Head of New Economy Corporate Coverage for APAC, expressed excitement about the partnership. She pointed out that the bank’s commitment to innovation and expertise in serving global new economy clients make it an ideal partner in helping Crypto.com achieve its long-term goals. 

CryptoCom Expands Its Global Presence 

This development comes as Crypto.com pursues its global expansion goals, which have led to new partnerships and the acquisition of top entities. 

Earlier this week, the exchange announced its acquisition of Orion Principals Limited, an Abu Dhabi Global Market-licensed brokerage company. Through the acquisition, Crypto.com users will gain access to various financial products, ranging from securities to contracts for difference (CFD).

In August, the exchange became the first crypto entity to collaborate with the UEFA Champions League. The three-year deal, spanning 2024 – 2027, seeks to boost Crypto.com’s visibility in the football scene, leveraging the Champions League global audience, which runs into hundreds of millions during a cup final. 

Donald Trump’s Son Eric on Bitcoin: “I Am Confident That It Is Going To Hit $1 Million”

Albert Brown
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Donald Trump’s Son Eric on Bitcoin: “I Am Confident That It Is Going To Hit $1 Million”

Eric Trump, President-elect Donald Trump’s son, is bullish on Bitcoin.

Barely a week after Bitcoin clinched the long-desired $100,000 price point, Bitcoiners are already setting their sights on new milestones, seven figures to be exact. The latest voice to join this chorus is Eric Trump, the second son of U.S. President-elect Donald Trump.

“I am confident that it [Bitcoin] is going to hit $1 million,” Eric Trump asserted, speaking to a packed audience at the ongoing Bitcoin MENA Conference in Abu Dhabi today.

Eric Trump’s appearance at the conference follows his father’s campaign appearance at Bitcoin 2024 in Nashville as the family has increasingly positioned itself as pro-crypto, a position Donald Trump has promised to reflect in his incoming administration’s policies. 

Trump’s pro-crypto stance has been a major factor driving Bitcoin’s recent rally. To be sure, the asset has surged over 47% in the month following the election.

Speaking at Bitcoin MENA, Eric Trump asserted that the advent of crypto marked the start of a financial revolution.

“I think that Bitcoin is a fundamental shift in the way we think about money,” he stressed.

According to the real-estate mogul, the asset has changed how he viewed the management of his company’s treasury, accepted payments, and made payments.

Eric Trump highlighted several reasons for his confidence in Bitcoin. They included Bitcoin’s resistance to censorship, supply cap, and instant liquidity. Highlighting Bitcoin’s lack of intermediaries and reduced barrier to entry compared to traditional assets.

On this note, he quipped: “I can trade Bitcoin at midnight on Saturday while having dinner with my wife.”

Eric Trump contended that while most people did not recognize Bitcoin’s potential yet, “eyes are going to be opened when Bitcoin hits $1 million.”

The real-estate mogul compared the uptake of Bitcoin to technologies like email and SMS. He noted that while adoption of these technologies had initially been slow, everyone now uses them.

As such, he lauded attendees at the conference as pioneers in a revolution he tipped to be led by America with Donald Trump at the helm.

Eric Trump is not the first figure to project a Bitcoin spike to $1 million. In an interview three months back, Lyn Alden, an investment strategist, suggested Bitcoin could reach this price mark in 2035. Asset manager Bernstein also projected a Bitcoin rise to $1 million by 2033. These projections came up before BTC even claimed $100,000.

Here’s Next Major Shiba Inu Support Level as SHIB Dumps Hard

Albert Brown
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Here’s Next Major Shiba Inu Support Level as SHIB Dumps Hard

Following the latest Shiba Inu dump from a significant resistance, analysis shows the next demand zone the asset must hold for a price rebound.

The broader crypto market saw substantial downsides in the past 24 hours, catalyzed by Bitcoin’s brief fall to $94,000. Shiba Inu was not excluded from the capitulation, with the asset falling over 10% from its price in the past day.

In today’s news on Shiba Inu, a report shows that Shiba Inu’s slump was from a strong resistance area. Crypto Basic reported that the meme coin corrected from a multi-month supply zone around the $0.00003343 price mark, which an analyst showed was its 0.618 Fibonacci extension level.

Data from IntoTheBlock shows that the resistance level features 153,110 addresses holding 28 trillion SHIB at an average price of $0.000032. The supply from the price level proved insurmountable for Shiba Inu, spurring an over 10% correction.

Shiba Resistance
Shiba Inu GIOM | IntoTheBlock

Shiba Inu Approaching Key Support Level

Meanwhile, further analysis has shown the next major support area for Shiba Inu if the downtrend persists. Per data from IntoTheBlock, the price level is at $0.000022, where a large number of addresses hold a substantial amount of Shiba Inu, which is the token’s next local demand zone.

The analysis shows that 107,920 wallet addresses bought Shiba Inu between $0.000019 and $0.000024, with the average price converging at $0.000022. Notably, the addresses hold 119.55 trillion SHIB, which could be a strong buffer for further downward momentum.

Shiba Support
Shiba Inu Support

Meanwhile, Shiba Inu trades at $0.00002687 and is still over 22% away from the primary support area. Notably, a sustained trade around the current price level could see the meme coin retest the failed resistance zone at $0.000032.

Shiba Inu On-chain Analysis

Shiba Inu’s on-chain analysis broadly mirrors the prevailing bearish market sentiment. Signals on the meme coin remain mostly bearish, with all four major indicators suggesting skepticism among market participants.

For instance, large transactions in the Shiba Inu network have decreased in the past 24 hours, with the net network growth remaining negative. Also, more SHIB holders are now at a loss, while accumulation among whales has dropped in the past day. 

However, a staggering 64% of Shiba Inu holders are still in profit at the current market price. Of the remaining 36%, 10% are at break-even, while the other 26% are nursing portfolio losses.

Ondo Price Targets $2 as Whale Bets Big Amid Market Pullback

Albert Brown
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Ondo Price Targets $2 as Whale Bets Big Amid Market Pullback

Will a channel breakout rally and whale accumulation drive the price of Ondo Finance (ONDO) to the $2 mark?

Despite the broader market correction, Ondo Finance is holding strong amid the massive incoming supply. Currently, Ondo is trading at $1.63, with a 2.55% price increase over the past 24 hours, maintaining a market cap of $2.25 billion.

The recovery in Ondo is signaling a potential surge toward the $2.00 psychological mark. Is this optimistic target achievable amid the broader market pullback? Let’s explore.

ONDO Price Analysis

The 4-hour chart shows a significant candle forming in the past four hours, marking a 9.46% surge within a falling-channel pattern.

ONDO price chart
ONDO price chart

Moreover, it completes a morning star pattern as it bounces back from the $1.47 support level. Breakout potential has significantly increased as the price approaches the overhead resistance trendline.

The bullish reversal in Ondo’s price action stems from a long-standing support trendline with consistent lower price rejections, which adds credibility to the morning star pattern and further increases breakout chances.

Whale Shows Confidence Amid Market Crash

A crypto whale has entered Ondo Finance as the bullish recovery trend gains momentum. According to a recent tweet from SpotonChain, a whale bought a large amount of Ondo tokens amid the broader market pullback.

The entity created a new wallet and exchanged 4,611 Ethereum tokens, worth $17.1 million, to purchase Ondo tokens. In return for the massive Ethereum supply, the whale acquired 10.978 million Ondo tokens at an average price of $1.553.

Will ONDO Price Reach $2?

The MACD and signal lines have shown an uptick with the bullish recovery, supporting the upward trend. This increases the chances of a positive crossover, signaling a potential trend reversal.

Using trend-based Fibonacci levels, the immediate resistance level above the supply trend line is the 23.60% level at $1.6952. If a breakout occurs early, there is potential for a surge to the 50% Fibonacci level at $1.93.

This would significantly increase the likelihood of Ondo reaching the $2.00 psychological mark before the end of December.

South Korea Delays Crypto Tax by Two Years, Cites Need for Refinement

Albert Brown
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South Korea Delays Crypto Tax by Two Years, Cites Need for Refinement

South Korea has delayed the implementation of its crypto tax policy by two years, citing the need for further institutional refinement. 

Park Chan-dae, the floor leader of the Democratic Party of Korea, announced this decision during a press conference at the National Assembly. 

The postponement follows extensive discussions, with Park emphasizing the need for an overhaul in the regulation of virtual assets. The delay comes amidst heightened political tensions and market volatility.

Postponement of Virtual Asset Taxation

The Democratic Party of Korea confirmed that the virtual asset tax, previously scheduled for implementation, would now be deferred. The party justified the decision by stating that the current regulatory framework required additional improvements to ensure systematic taxation. 

This announcement coincided with debates over several supplementary budget bills. Of the 13 bills proposed by the government, eight were marked for immediate processing during the upcoming plenary session, while five others remained under further deliberation. Notably, the inheritance and gift tax bill faced rejection, with criticism focusing on its provision to lower the top inheritance tax rate.

The party also maintained its opposition to the government’s separate taxation of dividend income. Park described it as disproportionately favoring the wealthy. Discussions between ruling and opposition parties are expected to continue, with the National Assembly Speaker facilitating potential last-minute negotiations.

Fluctuations Amid Political Developments

It is important to recall that political developments in South Korea have had a significant impact on the crypto market. Early this month, following the announcement of martial law, prices of cryptocurrencies traded against the Korean won on the Upbit exchange experienced glitches. 

Bitcoin briefly plummeted to $66,000 (88,266,000 won) before recovering, although it continued to trade at a discount compared to other exchanges. Similarly, XRP’s value dropped to $1.16 (1,623 won) before rebounding above $2.4 (3,412 won). Meanwhile, it traded much higher on global markets.

These crypto fluctuations occurred in tandem with disruptions in South Korea’s broader financial markets, including stocks and bonds. Notably, President Yoon Suk Yeol’s emergency martial law declaration marked the first use of martial law since the 1980s and added to the growing uncertainty.

Ethena (ENA) Eyes $1.33 Target After Short-Term Pullback

Albert Brown
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Ethena (ENA) Eyes $1.33 Target After Short-Term Pullback

A downturn within a channel has brought Ethena (ENA) back to a crucial support trendline. Will buyers drive a comeback and set the stage for a new peak formation?

As the 52nd largest cryptocurrency in the market, Ethena struggles to maintain its footing at the $1 psychological level. With a 2.55% recovery in the past 24 hours, it remains one of the few tokens in the green while the broader market declines.

Although Ethena has experienced an 18.45% rise over the past 7 days, the recent pullback has dropped its market cap below $3 billion. Will this pullback lead to a sharp correction, or is a reversal on the horizon for a new swing high?

Ethena (ENA) Price Analysis

On the 4-hour chart, Ethena’s price action forms a rising channel pattern. During the recent market pullback, the price action reversed bearishly within the channel’s trendlines.

Ethena (ENA) Price Chart
Ethena (ENA) Price Chart

The downfall saw Ethena’s price drop from $1.1475 to a 24-hour low of $0.86483, marking a nearly 25% pullback and testing the local support trendline.

However, the price is now holding steady above the crucial support level, signaling a potential bullish comeback. Following a quick reversal, Ethena saw a 4.02% price jump in the past four hours, forming a bullish candle and challenging the short-term supply line.

Additionally, it has established dominance at the center pivot level of $0.9791. Currently, ENA is trading at $1.02, up by 5% at press time, suggesting the possibility of a bullish rebound.

The MACD and signal lines have both reached the center level and are closing the bearish gap, supporting the chances of a bullish reversal. Should a bullish crossover occur, the MACD indicator will trigger a buy signal for Ethena.

Ethena Price Targets

According to the pivot levels, the immediate resistance for Ethena is at $1.1977, the R1 resistance pivot level. If the price breaks above this, the trendline breakout could challenge the R2 pivot level at $1.3361.

In the event of a broader market crash, especially if Bitcoin tests the $90,000 support, Ethena could break below the support trendline. In such a scenario, key support levels for Ethena are at $0.8107 and $0.5921.

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