Weekly Update: Bitcoin at $42K, Ethereum’s Bear Trap, and Altcoins Surge

Jan. 29, 2024
Weekly Update: Bitcoin at $42K, Ethereum’s Bear Trap, and Altcoins Surge

Bitcoin (BTC) rebounded strongly, reclaiming a crucial level at $42,000, while Ethereum (ETH) saw a modest uptick in its price. Santiment highlighted that Bitcoin underwent a decline, retracing to $38,500 before staging a slight recovery to $42,007 today. However, this positive movement in Bitcoin stands in contrast to the relatively lackluster performance of altcoins.

Source: X

However, the S&P 500 recently achieved a new All-Time High, prompting speculation that major cryptocurrencies, including Bitcoin, might “regress to the mean” and align with the bullish trend observed in equity markets. Notably, the cryptocurrency sector has lagged behind stock markets since diverging on January 17th.

Crypto analyst CryptoCon highlighted a historical pattern, noting that no mid-top in the Bitcoin cycle has occurred without revisiting the Monthly Least Square Moving Average. Currently valued at $30,358, this moving average has steadily increased, but Bitcoin’s price has yet to test this crucial support.

Source: X

However, a cautious approach is advised based on long-term data observations, including the 2019 example. CryptoCon’s estimation anticipates a move to the low $30K region by February or March.

Presently, Bitcoin is valued at $42,007, boasting a 24-hour trading volume of $20.35 billion and a market cap of $823.85 billion. In the last 24 hours, Bitcoin experienced a 1.19% decrease, while the weekly chart shows a 3% increase.

Bitcoin (BTC) 7-Day Chart | Source: CoinMarketcap

Meanwhile, Ethereum (ETH) has displayed signs of recovery, particularly around the $2,200 level. Long-tail rejection candles on its daily chart indicate a decrease in bearish momentum. Aiding a relief rally, Bitcoin steadying above $40,000 and a general uptrend in altcoins propel a positive shift in markets.

Ethereum dipped 20%, sliding from $2,714 to $2,168 in the last two weeks, marking a significant correction. During this pullback, the coin price broke below the support trendline of the channel pattern, which had supported a recovery rally for nearly three months.

Currently, Ethereum is priced at $2,284.43, with a 24-hour trading volume of $7.00 billion and a market cap of $274.55 billion. In the last 24 hours, Ethereum experienced a 0.98% decrease.

Ethereum (ETH) 7-Day Chart | Source: CoinMarketcap

However, Ethereum demonstrated resilience around the $2,200 mark, reclaiming the breached support trendline and triggering additional buying orders in the market. The reversal marked the prior downfall as a ‘Bear Trap,’ with evidence of significant short liquidation.

Source: Tradingview.com

Looking ahead, Ethereum’s ability to sustain its position above the reclaimed support at $2,200 is crucial. If successful, it could initiate a 6.85% relief rally, targeting the $2,430 level.

Nevertheless, a notable obstacle lies at this immediate resistance level, corresponding to the 50% Fibonacci retracement of the recent correction. For Ethereum to reach $2,700 again, it needs to overcome a crucial barrier and build more momentum.

Top Gainers Altcoins Weekly Review

However, the standout performers of the week included various alternative cryptocurrencies. Manta Network (MANTA) took the lead, followed by Sui (SUI) and Conflux (CFX), showcasing impressive growth among the top 90 digital currencies.

Manta Network (MANTA) emerged as the highlight, with an astonishing 50% surge throughout the week, reaching a peak value of $3.83. Currently, MANTA is actively traded at $3.66, demonstrating strong performance with a 0.80% increase in the last 24 hours.

Manta Network (MANTA) 7-Day Chart | Source: CoinMarketcap

Moreover, Sui (SUI) also made significant strides, achieving a 35% gain over the week. SUI, demonstrating resilience in the market, is presently trading at $1.40 despite experiencing a 1.02% dip in price

Sui (SUI) 7-Day Chart | Source: CoinMarketcap

Conflux (CFX) attracted notable attention, boasting a weekly surge of over 33%. Priced at $0.242, CFX experienced a 10.81% increase in value and an impressive 31.56% surge in trading volume within the last 24 hours.

Conflux (CFX) 7-Day Chart | Source: CoinMarketcap

Additionally, noteworthy alternative coins such as Internet Computer (ICP), Solana (SOL), and Avalanche (AVAX) reported gains in their weekly performance, with ICP rising by 11%, SOL by 10%, and AVAX displaying a 9% increase, as per data retrieved from CoinMarketCap.

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Ammar Raza

Associate editor
Skilled in crafting compelling content, with a deep enthusiasm for blockchain technology. I offer precise and easily comprehensible perspectives on cryptocurrencies, decentralized finance, and the ever-evolving landscape. Count on me as a reliable resource to remain informed about the latest advancements in the world of crypto.