The cryptocurrency market has experienced a slight setback as both Bitcoin (BTC) and Ethereum (ETH) witnessed a dip of nearly 3% in their prices.
As the week unfolds, investors and traders are keenly observing the market trends, seeking insights on the possible future movements of these leading digital assets.
In this price prediction, we will delve into the factors influencing the market, analyze the recent price actions, and explore expert predictions to help you anticipate what to expect in the week ahead for the crypto market.
Unforeseen Shift in Bitcoin’s Key Metric and its Effects on Price Trend
A noteworthy change in one of Bitcoin’s (BTC) crucial indicators, which could substantially influence its price movement, has recently been detected according to fresh data.
This surprising development has piqued the interest of investors and analysts as they attempt to unravel its consequences for the cryptocurrency’s path.
Moreover, certain reports indicate that the FTX collapse has contributed to a gradual transformation in the behavior of BTC holders.
Coins that have remained unspent since the incident are progressively becoming part of long-term holdings.
A Surprising Turn in Bitcoin’s Active Addresses Pattern
Bitcoin, like many financial assets, exhibits trends and patterns that can offer valuable insights into its price fluctuations.
Fresh data from Cryptoquant has unveiled an intriguing change in the pattern of Bitcoin’s active addresses.
The chart shows that Bitcoin’s price usually climbs following a hash rate drop when the number of active addresses exceeds a specific threshold.
For most of this year, the active addresses metric ranged from 900,000 to 1.1 million per day.
However, this pattern shifted on May 1st, as the active addresses metric soared to a new record of nearly 1.3 million – the highest figure in over a year.
This increase in active addresses implies a potential alteration in market dynamics, igniting curiosity and conjecture among traders and analysts.
The impact of these developments on Bitcoin’s price remains to be seen, but they certainly add an element of intrigue to the ongoing market analysis.
Ethereum Burn Rate Soars as Retail Interest Grows and Developers Discuss Deneb Upgrade
Ethereum recently experienced a substantial burn of 10,000 ETH within 24 hours, as reported by Delphi Digital.
Token burning is a process where ETH is sent to an inaccessible “burn address,” reducing the total supply and potentially lowering inflation, which benefits long-term investors.
Glassnode’s data indicates a surge in retail interest in Ethereum, with an increasing number of addresses holding over 0.1 ETH.
Additionally, the Ethereum network saw a rise in transfers, resulting in an 11-month high in average gas fees paid to validators.
This development led to an increase in the total number of validators from 572,635 to 645,192. Developers are now discussing potential enhancements for the upcoming Deneb upgrade.
Bitcoin is currently exhibiting a mild bearish trend, trading at $28,900, down nearly 3%. The BTC/USD pair is building on its previous daily gains, inching closer to the $30K milestone.
The technical aspects of Bitcoin remain steady, with BTC’s trading largely in line with our Bitcoin price prediction.
On the four-hour chart, Bitcoin remains above the 50-day exponential moving average, which serves as a vital support level around $28,700.
This level has posed significant resistance for BTC throughout the week. However, closing candles above $28,700 heightens the likelihood of a bullish reversal for BTC.
Bitcoin may encounter immediate support near the 27,600 level, as indicated by a trendline on the 4-hour chart.
Should the price break through this pivotal 27,600 level, BTC could be en route to the next support level at 27,200.
On the other hand, if BTC successfully surpasses the $29,600 threshold, its price could potentially climb to $30,400.
The current Ethereum price is $1,911, and ETH experienced a slight dip of around nearly 2.5% in the past 24 hours.
It currently ranks #2 on CoinMarketCap, with a live market capitalization of $229 billion.
On Sunday, Ethereum, the second-leading cryptocurrency, is trading with a sideways bias, maintaining a narrow range between $1,875 and $1,965.
The upward trendline is supporting ETH/USD pair near $1,870 and closing of candels above this level has a potential to trigger a bullish bounce-off.
On the upside, the ETH/USD pair has a potential to go after $1,960 or even higher towards $2,020.
On the other hand, support continues to hold around $1,875.7, and a break below this level opens up further room for selling down to the $1,800 mark.
Top 15 Cryptocurrencies to Watch in 2023
Stay up to date with the latest ICO projects and altcoins by regularly exploring the expert-curated list of the top 15 most promising cryptocurrencies to watch in 2023, as suggested by industry specialists at Industry Talk and Cryptonews.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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