Bitcoin and crypto are now set for a ‘parabolic’ price movement as Ethereum’s institutional interest ‘explodes’
BitcoinBTC and ethereum have fluctuated wildly this week as traders try to get ahead of the Federal Reserve’s interest rate hikes.
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Bitcoin prices last week topped $30,000 per bitcoin, the highest since last June, but have crashed back despite analysts calling the start of a new “cryptocycle” and ethereum’s founder giving a bullish price prediction.
Now, an under-the-radar but historically accurate bitcoin price indicator has turned positive as ethereum institutional activity suddenly explodes.
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“Reserve risk just crossed 0 again. This bitcoin indicator signals great potential,” bitcoin and crypto analyst Ali Martinez posted to Twitter along with a chart of Glassnode data showing the bitcoin price crossing the level for the first time since late 2021.
“When the bitcoin reserve risk moves above 0, it signals parabolic price movements,” Martinez said, pointing to historical data when in 2012, 2013, 2015, 2019 and 2020 it resulted in gains of 2,830%, 566%, 6,400%, and 99% respectively. % and 487%.
However, the bitcoin price action so far this week has dampened confidence among traders.
“The market is struggling to find a reason to buy and support the price as profit-taking selling pressure and prolonged liquidation have pushed the price down this week, while the US stock market is losing direction,” Yuya Hasegawa, crypto market analyst at Bitbank, said in an emailed statement.
“Unfortunately, despite the decline, bulls don’t seem to have given up yet as the bitcoin futures market’s funding rate remains positive, which could limit the upside potential for bitcoin and exacerbate its near-term withdrawal.”
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Meanwhile, ethereum’s Shanghai upgrade earlier this month, the latest part of its transition to a full proof-of-stake network, has raised expectations the network could see a wave of new investor interest.
“As expected, Shanghai was followed by massive ethereum withdrawals,” K33 head of research Bendik Schei wrote in a report this week describing ethereum’s institutional activity as “exploding,” adding: “The market overestimated the Shanghai selling pressure, which led to ethereum outshines bitcoin on growing institutional activity.”
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