Aurelia Butler

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    in Cryptocurrency

    Bitcoin (BTC) Painted Doubletop Pattern: Here’s Potential Effect on Price

    A double-top pattern occurs when the price of an asset reaches a high point, retraces slightly, and then rises back to the previous high without breaking through it, creating two distinct peaks at a similar price level. For Bitcoin, which has been on a substantial upward trajectory, gaining enormous value and shattering expectations, this pattern could indicate that its momentum is stalling.After the breakthrough above $41,000, expectations were high that Bitcoin would continue its rally towards $43,000. However, the struggle at this key psychological level has raised eyebrows. The failure to push past and hold above this level could be a bearish signal, suggesting that Bitcoin may be due for a correction if the double-top pattern is confirmed.The implications of such a pattern playing out could lead to a retracement of Bitcoin’s price. Typically, a confirmed double-top would see potentially retesting lower support levels, as the pattern often leads to a reversal of the prior upward trend. For traders and investors, this could mean a period of consolidation or even a short-term bearish phase before any further bullish movements.On the flip side, the crypto mining sector has been flourishing, with inscriptions bringing substantial profits to miners. This has led to a rally in bitcoin mining stock companies, reflecting the overall enthusiasm for the digital gold. The mining sector’s profitability has often been a barometer for Bitcoin’s market health, suggesting that the underlying fundamentals remain strong despite potential technical pullbacks.If the double-top pattern is not realized and Bitcoin finds the strength to break past the $43,000 resistance, it could invalidate the bearish signal and set the stage for a continuation of the bull run. The crypto market is notorious for its volatility, and patterns that seem apparent can often be swiftly invalidated by a change in investor sentiment or macroeconomic factors.Firstly, the chart indicates that Solana has been consistently maintaining its position above the moving averages, a bullish indicator that suggests the asset is in a strong upward trend. The steep angle of the moving averages further underscores this momentum. However, such a rapid increase in price often leads to concerns about the asset being overbought.The Relative Strength Index is currently high at around high levels. This could suggest that Solana is potentially overbought, which often precedes a price correction or reversal. However, in the context of cryptocurrencies, a high RSI can persist for extended periods during strong bull runs, so it alone is not a definitive indicator of an imminent reversal.Shorting right now carries significant risk. Given the asset’s strong performance and the burgeoning ecosystem around it, there’s considerable market sentiment backing further growth. The growth of the Solana ecosystem, fueled by cheap transactions and a burgeoning DeFi sector, provides fundamental support for the price. Additionally, the influx of memecoins offering astronomical profits to investors adds to the frenzy and attracts more capital to the Solana network.The current climate favors platforms that offer robust DeFi capabilities, and Solana is among the top contenders in this space due to its high throughput and low cost. These factors drive adoption and can sustain an asset’s overbought conditions longer than traditional markets would typically allow.This article was originally published on U.Today More

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    in Economy

    Dollar struggles to gain footing in thin trade; yen steady

    SINGAPORE (Reuters) – The dollar was trying to find a floor on Tuesday in holiday-thinned trade, pressured by signs that inflation in the world’s largest economy is cooling that will likely give the Federal Reserve room to ease interest rates next year.The yen meanwhile steadied near its recent five-month peak on the prospect that the Bank of Japan (BOJ) could soon mark an end to its ultra-easy policy. For most of 2022 and 2023, the policy has kept the Japanese currency under pressure as other major central banks globally embarked on aggressive rate-hike cycles.Currency moves were largely muted in the day after Christmas, with markets in Australia, New Zealand and Hong Kong still out for the Boxing Day public holiday.Against the greenback, the euro slipped 0.06% to $1.1019, but was not too far from a more than four-month top of $1.1040 hit last week.Sterling was little changed at $1.2701, while the Australian and New Zealand dollars were huddled near their recent five-month peaks.The dollar index languished near a five-month low of 101.42 hit last week, and was last at 101.65.Data released on Friday showed U.S. prices fell in November for the first in more than 3-1/2 years, pushing the annual increase in inflation further below 3% and boosting market expectations of an interest rate cut from the Fed next March.The reading came a week after Fed policymakers opened the door to rate cuts in 2024 at the central bank’s final policy meeting for the year, a move that drove the dollar lower.”The Fed has made considerable progress on inflation, as core started the year closer to an annual rate of 5%, though the job is not yet done in ensuring inflation is on a sustained trajectory toward its 2% target,” Wells Fargo analysts said in a note.In Asia, the yen rose 0.1% to 142.20 per dollar, drawing additional support from comments by BOJ Governor Kazuo Ueda, who signalled the possibility of a policy shift.Ueda said on Monday the likelihood of achieving the central bank’s inflation target was “gradually rising” and it would consider changing policy if prospects of sustainably achieving the 2% target increase “sufficiently”, though he said the BOJ had not decided on a specific timing to change its ultra-loose monetary stance.”BOJ Governor Ueda did not provide any policy guidance in his speech yesterday, though he was hopeful that Japan was finally getting out of the low-inflation environment,” said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.A slew of data out on Tuesday showed Japan’s jobless rate was unchanged at 2.5% in November from the previous month, while business-to-business service inflation was steady at 2.3% last month.Elsewhere, the kiwi gained 0.1% to $0.63145, while the Aussie last bought $0.68065. More

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    in Economy

    Japan corporate service inflation steady in November

    The data underscores the Bank of Japan’s (BOJ) view that rising service prices will start to replace cost-push inflation as a key driver of price gains, and help achieve its 2% inflation target on a sustainable basis.The year-on-year rise in the services producer price index, which measures what companies charge each other for services, was unchanged from October and higher than a 2.0% gain in September, BOJ data showed. BOJ Governor Kazuo Ueda said on Monday the likelihood of achieving the central bank’s 2% inflation target was “gradually rising”, and that next year’s wage outlook was key to the timing of an exit from ultra-loose monetary policy.He has repeatedly stressed the need for wages to keep rising, heightening market attention to developments in service prices, which reflect the wage pressures companies face. More

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    in Economy

    Ex-BOJ board member criticises governor Ueda’s market messaging

    TOKYO (Reuters) – Bank of Japan Governor Kazuo Ueda must change his communication style that is confusing markets into believing an exit from ultra-loose monetary policy is imminent, former BOJ board member Takako Masai told Reuters.Less than a year into the job, Ueda has already wrong-footed markets twice in comments about the policy outlook including on Dec. 7, when he elaborated on what the BOJ could do after ending its negative interest rate policy.Bond yields and the yen surged on the comments, made in parliament, by fuelling market expectations the BOJ could end negative interest rates as early as in December. The BOJ made no change this month to its ultra-loose policy and dovish guidance.Ueda’s hawkish remarks in parliament contrasted with recent comments by several board members warning against any premature debate of an exit, casting doubt on whether the governor was properly representing the board’s view in public, Masai said in an interview on Monday.”As chair of the policy meetings, the governor shouldn’t speak beyond what has been decided at the board,” said Masai, who served at the BOJ’s nine-member board from 2016 to 2021.”The sequence of the BOJ’s recent communication is confusing and may narrow its options” on the exit timing by prompting traders to price in the chance of imminent action, Masai said.With inflation exceeding the BOJ’s 2% target for well over a year, many market players expect the central bank to lift short-term rates out of negative territory next year, with some betting on action as early as January.In a country that has experienced decades of stagnant price and wage growth, creating a positive wage-inflation cycle and making sure it stays will likely take time, Masai said.Ending ultra-loose policy soon would deviate from the government’s focus on achieving durable wage growth, and ensuring Japan does not revert to deflation, she added.The government has yet to officially declare that Japan is permanently out of deflation. Prime Minister Fumio Kishida has made a full exit from deflation his policy priority, and announced a range of steps to prod firms to boost wages.”It’s hard to see the BOJ change policy as quickly as markets expect, such as in January or April, when taking into account the (dovish) comments of each board member and the government’s assessment of the economy,” she said.The BOJ board holds a policy-setting meeting eight times a year. The governor serves as chair of each meeting, and explains the board’s decision at a post-meeting news conference.Masai is currently chairperson at private think tank SBI Financial and Economic Research Institute. More

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    in Cryptocurrency

    Vitalik Buterin’s Mom’s Token METIS Skyrockets 36% in Epic Ethereum Rally

    CoinMarketCap’s recent layer-2 sector token places Metis in eighth place, with a capitalization of $168.55 million. The token has demonstrated superior performance in the last 24 hours and an impressive 106% increase in the last 30 days, positioning itself as a standout performer in the Metis ecosystem.METIS to USD by The surge in the Metis price can be attributed to the announcement of the creation of a $100 million initiative aimed at supporting the growth of the Metis ecosystem.Scheduled for distribution in the first quarter of 2024, the fund will facilitate sequencer mining, retroactive funding and the development of new projects, fostering a community-driven approach managed by the MetisDAO Foundation and token holders.A distinctive feature of Metis lies in its storage strategy. While traditional layer-1 solutions store transaction data on-chain, adopts off-chain storage, utilizing Memo Labs storage by the Sequencer. This not only ensures streamlined data management but also significantly reduces storage costs compared to Ethereum’s layer 1.This article was originally published on U.Today More

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    in Cryptocurrency

    Ethereum (ETH) Primed for Rally to $3,400, Analyst Predicts Ahead of ETF Approval

    Earlier this year, major players in the asset management arena, including Ark Invest and 21Shares, applications for spot-based Ethereum ETFs to the U.S. Securities and Exchange Commission (SEC). If approved, these ETFs could pave the way for increased institutional participation and capital inflow into the Ethereum market.As the approval date approaches, the analyst speculates that holders may become less inclined to sell their Ethereum, while others may feel compelled to enter the market, creating upward pressure on the price. Pentoshi pointed out that figures of $2,7xx and $3,400 were potential scenarios for Ethereum’s price.As of the latest market data, the current price of Ethereum stands at $2,281, representing a marginal decline of 0.37% over the past 24 hours. The market now awaits regulatory decisions regarding Ethereum ETFs, with potential approval seen as a crucial factor in determining the short-to-medium-term trajectory of ETH prices.While market analysts and enthusiasts closely monitor developments in the ETF approval process, the crypto community remains divided on the potential impact of such regulatory decisions. Some believe that ETF approval will act as a strong catalyst for Ethereum’s price, opening new avenues for institutional investment. Others caution that market reactions may be unpredictable, emphasizing the need for careful analysis and risk management.This article was originally published on U.Today More

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    in Cryptocurrency

    11% Bitcoin (BTC) Move Coming Soon: Skew Analytics

    The recent candlestick pattern resembles a “tweezer” bottom, identified by the wicks touching down into a demand zone around $40,000. This area acts as a critical support level where buying interest historically comes in, indicating potential upward pressure. However, the topside of the previous weekly open around $44,000-$45,000 has been swept, revealing a supply zone where sellers previously stepped in, potentially capping upward moves.Given this setup, two primary scenarios could unfold in the near term. The first, a bullish case, sees BTC rebounding from the $40,000 demand level, where the tweezer bottom suggests a floor. Should buyers maintain control, a push through the $44,000-$45,000 supply zone could see aiming for an 11% move toward the mid-$40K region, possibly testing the $48,000 resistance.Conversely, if the $40K level fails to hold as support, there is a bearish scenario where Bitcoin could retreat, challenging the lower support levels. This could initiate a move down by 11%, potentially visiting the $36K zone, where the market may seek new demand.Inscriptions and high Bitcoin fees have been the recent hot topics for the asset, indicating a robust network but also raising concerns over scalability and transaction costs. Meanwhile, bullish sentiment around miner companies suggests confidence in the sector’s profitability and long-term growth, despite price consolidation.Apart from Bitcoin, Solana’s growth spurt contrasts starkly with the perceived stagnation in Ethereum’s DeFi ecosystem, which some community members describe as “dead.” This divergence in sectoral momentum could influence capital flows into the crypto market, potentially impacting Bitcoin’s trajectory.This article was originally published on U.Today More