Bitcoin and Ethereum See Modest Uptick Amid Aggressive Outflow from BTC ETFs
The cryptocurrency market experienced a slight increase on Saturday as Bitcoin and Ethereum, the leading digital assets, saw a surge of nearly 1%, providing some relief from the broader market sell-off. However, the aggressive outflow from US-listed spot BTC ETFs continues to put pressure on Bitcoin, prolonging its correction and triggering selling pressure in altcoins.
SpotOn Chain recently revealed that there was a net outflow of $52 million from BTC ETFs on March 22, 2024. This negative trend continued throughout the week, resulting in a total outflow of $888 million across 10 ETFs. After 50 trading days, the cumulative net inflow has reached a low of $11.27 billion. Notably, the iShares Bitcoin Trust recorded its lowest single-day inflow in 20 days, with just $18.9 million.
This data indicates that traders who are waiting for an entry opportunity should exercise caution and wait for better confirmation before considering any reversal.
Ethereum (ETH)
Ethereum is known as the pioneering smart contract platform with a robust decentralized application (dApp) ecosystem. Its native token, ETH, facilitates transactions and powers operations on the network.
During the middle of the week, Ethereum experienced a rebound from the 38.2% Fibonacci retracement level, leading to a relief rally up to $3587. However, buyers failed to maintain this momentum and the price dropped back to $3363.
Currently, Ethereum has a market cap of $404 billion and a trading volume around $19.5 million. If the correction trend continues, sellers may challenge the $3125 support level and potentially extend the correction to $2820. On the other hand, a breakout above the $3600 barrier would provide additional confirmation of a recovery.
Gala Games (GALA)
Gala Games is an emerging player in the blockchain gaming space that allows players to participate in game development. What sets Gala Games apart is its focus on creating a decentralized gaming ecosystem where players can own in-game assets such as NFTs.
During the recent relief rally in the market, GALA experienced a rebound from a 50% retracement level at $0.0536, indicating that buyers are still active. This positive upswing pushed the altcoin up to $0.06, with a market capitalization of $1.8 billion.
Currently, GALA has seen a 6.5% surge in price supported by $289 million in trading volume. If the bullish reversal breaks the immediate resistance at $0.065, buyers may target potential levels at $0.073 and $0.086.
Shiba Inu (SHIB)
Shiba Inu started as a meme-inspired cryptocurrency but has grown into a project with its own decentralized exchange, ShibaSwap, and plans for expansion into an NFT market and gaming. SHIB’s large and active community, along with its scarcity tactics like coin burning, contribute to its uniqueness in the market.
With a market cap of $16.15 billion, Shiba Inu currently ranks as the 18th largest cryptocurrency according to Coinmarketcap. Analysis of the daily chart shows that SHIB’s price is hovering above the 61.8% Fibonacci retracement level at $0.000024.
This consolidation phase, characterized by a downsloping trendline and horizontal support, suggests the formation of a descending triangle pattern. In the midst of the broader market correction, this bearish pattern indicates the potential for a prolonged downtrend.
If SHIB experiences a bearish breakdown from the $0.0000238 level, it may drop further to $0.000019.
Takeaway: Volatility Persists as Bitcoin Struggles to Rebound
The cryptocurrency market has seen heightened volatility over the weekend, with Bitcoin facing challenges in sustaining a rebound above the $60,000 mark. The presence of short-body candles on daily charts reflects uncertainty among market participants, and the threat of correction remains intact.
As an investor or trader, it is important to carefully analyze market trends and indicators before making any investment decisions. Stay updated on the latest developments in the crypto space and consider waiting for better confirmation before taking any action.
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