The crypto market is split right now. Bitcoin shows bearish signs, while Ethereum looks bullish. Bitcoin is facing potential selling pressure from two significant sources. The Mt. Gox distribution could release around $9.6 billion worth of Bitcoin into the market.
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Additionally, the DMM hack might add another $305 million worth of Bitcoin to the supply. These factors contribute to a bearish outlook for Bitcoin. As for Ether, the upcoming launch of eight ETH spot ETFs has served as a massive bullish catalyst for the second-largest cryptocurrency in the world.
Ethereum Hangs With the Bulls
The approval of Ethereum spot ETFs is obviously a huge bullish indicator. The SEC urged applicants to submit S-1 forms yesterday, which could lead to trading of these ETFs earlier than expected this month. This development could catch a sleepy market off guard, and QCP’s latest analysis bets on a bullish scenario for Ethereum.
Over the past few days, ETH’s price has shown resilience, generally maintaining an upward trajectory despite some retracements. The Moving Average (MA) lines, with the MA50 (red) and MA200 (blue), illustrate that the shorter-term MA50 has occasionally risen above the MA200, indicating potential bullish crossover points that suggest a strengthening short-term momentum compared to the long-term trend.
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The Relative Strength Index (RSI), which remains largely between the 40 and 60 range, shows that while the market isn’t overbought or oversold, it is leaning towards the higher end of the neutral zone. This could mean there is a strengthening buying pressure.
Bitcoin Is Turning Bearish
Meanwhile, Bitcoin seems to be getting comfortable among the bears. Its trading chart shows a predominantly bearish sentiment as it struggles under pressure. The moving averages (MA50 in red and MA200 in blue) reveal a bearish crossover, where the shorter MA50 has dipped below the longer MA200, typically signaling a bearish market sentiment and potentially attracting further sell-offs.
However, its RSI is also hovering around the mid-line, so there is a balance between buying and selling pressures. Still, it leans toward caution, indicating that the market is neither oversold nor overbought. Furthermore, the price movements below both moving averages underline a lack of bullish momentum, with the $67,650 resistance level at the MA200 serving as a major barrier to any surge in the short term.
Cryptopolitan reporting by Jai Hamid
