Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,165 trillion. Bitcoin is up by over 2% after a rollercoaster of a week. Ethereum decreased by almost 1% over the past seven days. XRP gained more than 15% in value this week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector decreased the total value of protocols…
BTC Price Must Definitively Reclaim $48K to Confirm Continued Uptrend
BTC is back above $48K after an abrupt breakdown of bullish trajectory saw the king coin shed up to $1,500 in a matter of hours on Aug 25. The world’s first cryptocurrency regained lost ground as quickly as it had slumped. Now, changing hands for $48, 642.
That impressive rebound is likely attributable to bullish news from Bloomberg analysts. Some of them predict that the US Securities and Exchange Commission (SEC) could launch a Bitcoin ETF soon.
In a Tuesday note to investors, Bloomberg expert James Seyffart argued that last week’s rapid withdrawal of an Ether futures ETF could open the door for the regulator to approve a BTC ETF as soon as October 2021.
“VanEck and ProShares’ rapid withdrawal of proposals for Ethereum futures ETFs is a good sign for a potential Bitcoin futures ETF, given the SEC has allowed those filing to remain active,” the analyst explained.
Another positive fundamental that might have buoyed BTC prices is the remarkable recovery of the Bitcoin network hash rate. This happened following a major crash sparked by China’s crackdown on miners.
The latest data from on-chain analytics provider CryptoQuant shows that the hash rate recently topped 152 EH/s and could hit record highs if the trend carries on.
The rising hash rate comes as evicted Chinese miners continue to set up shop in alternative locations. And, it indicates that the Bitcoin network is now more secure.
Analysts Issue Warning to BTC Investors
According to trader Rekt Capital, Bitcoin investors shouldn’t be too quick to celebrate. Even if the flagship crypto returned to higher levels on Wednesday, the danger is not fully gone. He warned his Twitter followers that despite the correction below $47K failing to keep the bulls at bay, Bitcoin needs to definitively reclaim levels above $48K to confirm a retest of $51K and beyond.
Rekt Capital added that failure for the bulls to reclaim those higher levels could indicate that the current bounce is just a relief rally. However, further downsides are to follow.
Meanwhile, celebrated crypto analyst John Bollinger advised investors not to acquire BTC at current prices. He urged market participants to carefully watch the BTCUSD pair. This way, they can consider taking profits or hedging their positions to counter the effects of a potential decline.
Top Altcoins Post Heavy Losses
Altcoins continued to extend their decline over the past 24 hours as BTC bulls struggled to overcome stubborn resistance and trample $50k.
The most influential altcoin, ETH, corrected lower after failing to hold on to the $3,300 support level. Also, the ETHUSD pair extended its losses. As a result, it slid as low as $3,150 before recovering slightly to trade at $3,220 during press time.
The biggest loser in the top ten list of cryptocurrencies was Solana (SOL), which parried gains of nearly 14%. Cardano (ADA) shed 8% on the day but managed to preserve weekly gains of almost 30%.