- Kraken CEO Jesse Powell believes Bitcoin will hit $1 million.
- Leading brokerage firm Charles Schwab is planning to roll out crypto trading services.
- Ethereum eyes robust support at $1,200 after losing the ground above $1,500.
- Ripple is pivotal at $0.45 in the wake of the rejection suffered under $0.5.
The cryptocurrency market is dealing with a broad-based correction that has been attributed to Bitcoin's rebuff from the record high of $58,000 in February. Recovery continues to be an uphill battle for most of the cryptoassets, including Ripple and Ethereum. However, selected altcoins like IOTA are posting double-digit gains, ignoring the bearish wave.
Bitcoin fundamentals grow despite lethargic price action
The pioneer cryptocurrency has been rejected from $52,000 twice in one week. At the time of writing, BTC is trading slightly above $47,000 after bouncing off short-term support at the 200 Simple Moving Average (SMA) on the 4-hour chart.
On the upside, Bitcoin is facing overhead pressure at the 100 SMA. The bearish outlook appears to have been validated by the Moving Average Convergence Divergence (MACD). If the support at $47,000 fails to hold, BTC may explore downhill levels toward $42,000.
BTC/USD 4-hour chart
Kraken CEO believes Bitcoin will hit $1 million
The CEO of Kraken exchange has always spoken his mind about Bitcoin's expected wild growth. In his latest interview with Bloomberg, Jesse Powell reckoned that the largest cryptocurrency could rise to $1 million.
We can only speculate, but when you measure it in terms of dollars, you have to think it's going to infinity. The true believers will tell you that it's going all the way to the moon, to Mars, and eventually, will be the world's currency.
Meanwhile, brokerage giant Charles Schwab is considering introducing cryptocurrency trading. The new service will ride on the tech of a crypto-native partner. Reports indicate that the brokerage firm is making plans to roll out the service by the end of the year.
Grayscale's GBTC trading at a negative premium
Grayscale Investments is the biggest digital money manager in the world. During the bull run from late 2020, Grayscale Bitcoin Trust that trades under the ticker GBTC consistently bought the flagship cryptocurrency, proving to the world that Bitcoin had matured as an asset.
While the fund manager has slowed down its uptake of Bitcoin, GBTC is trading at a -11.92% discount as per the data by Glassnode. A negative discount could be seen as a bearish signal, but some analysts say it is not entirely bad for Bitcoin.
Ethereum continues to run out of options as $1,200 beckons
Ethereum struggles with the search for robust support, especially with overhead pressure intensifying under $1,500. Losing the anchor at the 50 SMA was a big misstep for the bulls.
The least resistance path is downwards, as emphasized by the Relative Strength Index (RSI) drop below the midline. Short-term buyer congestion between $1,400 and $1,440 must stay in place to avoid losses that could see Ether tumble to $1,200.
ETH/USD 4-hour chart
On the upside, if the uptrend resumes and steps above $1,500 and by association, the 50 SMA, ETH could attain stability, allowing bulls to focus on higher levels $1,700.
Ripple takes another trip downstream
XRP almost hit $0.5 on Thursday, but the momentum fizzled out. The correction that took over seems unstoppable at $0.45. If bulls fail to reclaim the ground above $0.45, the bearish leg will extend to the 50 SMA at $0.44.
Based on the MACD, recovery is unlikely in the near-term. It is important to note the MACD line cross under the signal line on the 4-hour chart. Thus further losses to $0.4 are not a farfetched idea.
XRP/USD 4-hour chart
Closing the day above $0.45 will ensure Ripple's market stability, which will allow bulls an opportunity to fight for another breakout past $0.5. The confluence resistance by the 100 SMA and 200 SMA would delay the recovery.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.