Bitcoin Steady, Ethereum Tries to Hold Key Support at $1,900
- As the Bitcoin price consolidated around aroujdn$28k, Ethereum whales have been spotted hoarding more coins ahead of the Shanghai upgrade.
- Friday’s employment data from the United States Bureau of Labor Statistics is expected to have a volatility impact on Bitcoin.
The Bitcoin market has been consolidating over the past three weeks with possible double tops on the higher timeframes. With increased uncertainty on Bitcoin’s prices, the altcoin market led by Ethereum, XRP and Dogecoin (DOGE) has shown signs of rallying in the coming weeks. However, the deepest concern among most crypto traders is the thinning liquidity. As a result, crypto analysts predict that volatility will remain high in the coming weeks.
Ethereum price action amid Shanghai upgrade
Ethereum’s Shanghai upgrade is expected to clock in five days. As a result, volatility in the second largest digital asset could increase, especially after the recent breakout. In addition, over 1.1 million Ethers, which were awarded to the validators over the past two years, will be made available for withdrawal on April 12. In addition, analysts predict that the Kraken crypto exchange will liquidate Ethers after the $30 million settlement with the SEC seeks that it end its Staking-as-a-Service program. The K33 researchers recently noted.
1.1 million ETH related to partial reward withdrawals may face the market, while Celsius is likely to sell its 158,000 stake balance as part of the bankruptcy process. These two numbers represent nearly 1.3 million ETH or about $2.4 billion in potential sell-side pressure to meet the market.
Nevertheless, on-chain data shows that whales have increased their appetite for Ethereum. According to the market intelligence platform Santiment, the 10 largest exchange addresses on their ATL are at break-even levels, while the 10 largest non-exchanges continue to rise.
In addition, Lookonchain has identified several whales buying Ethereum from centralized exchanges including Binance.
A giant whale scored 10,633 $ETH from Wintermute Trading and traded 10,633 $ETH for 19.6M $USDC at a cost of $1,851, then put into #Composite.
The whale currently has $232 million in assets. pic.twitter.com/kHPGpYu3Oz
— Lookonchain (@lookonchain) 7 April 2023
Bitcoin price levels to watch out for
The Bitcoin market has consolidated around $28,000 with stops chasing highs in both directions. On the upside, Bitcoin has scaled as high as $29.3k and $26.5 on the downside over the past three weeks. With the weekly death cross between the 50 and 200 moving averages at play, the Bitcoin price is likely to return to lower prices before continuing with this year’s bull market. Also, a double top has formed perfectly on the higher timeframe with the daily RSI indicating a bearish divergence.
Crucial coming days for the decision on #BTC Double top$BTC #Crypto #Bitcoin pic.twitter.com/gEc4ONby2t
— Rekt Capital (@rektcapital) 7 April 2023
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The cryptocurrency market is notorious for significant volatility during strong news, particularly from the US Fed on monetary policy. With the US central bank on a mission to bring inflation down to 2 percent, it has in turn been forced to raise interest rates. Still, the US economy continued to struggle with layoffs and the mild risk of a recession.
The #work the market exploded. Last week’s jobless claims were revised up from 198,000 to 246,000 and last week’s 228,000 was expectations of 201,000. Challenger reported 89,703 announced #job cut in March, 15% more than February. That is the most since the third quarter of 2020, during the Covid shutdowns.
— Peter Schiff (@PeterSchiff) 6 April 2023
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On Friday, the Bureau of Labor Statistics will release data on changes in employment and unemployment. If the employment data report is stronger than expected, analysts estimate that Bitcoin’s price could fall below $26,500, or even below support. On the other hand, a weaker-than-expected employment data report could drive the price of Bitcoin above recent highs and towards $30,000.
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