The crypto market is experiencing a significant correction, with BTC and ETH both retreating from recent highs. This downturn comes amidst mixed economic signals and anticipation of the upcoming Trump inauguration. BTC is currently trading at $92K, down 5% over the past week after touching $102K on Monday. ETH stands at $3.2K, having declined 10.48% over the past month. The total crypto market cap has contracted, reflecting broader market uncertainty.
On-chain analysis reveals interesting trends. BTC's taker buy-sell ratio in the futures market is at 0.84, indicating more sell orders than buys. This suggests increasing sell pressure in the short term. However, ETH's RSI of 27.1 as of January 8 signals oversold conditions, hinting at a potential rebound if buying pressure returns. Adoption trends show mixed signals. While BTC US spot ETFs recorded an outflow of over $568M on Wednesday, institutions are reportedly buying BTC again below $100K, according to BlockTrends. This divergence highlights the complex dynamics at play in the current market.
For strategic insights, traders should watch the key support level of $90K for BTC. A break below this could trigger further selling, while holding above may stabilize the market. For ETH, the $3.33K level is crucial, with a potential drop to $2.72K if this support fails.
The regulatory landscape remains a focal point for investors. The incoming Trump administration is expected to adopt a more crypto-friendly stance, potentially accelerating institutional adoption. However, the immediate market reaction has been cautious, with some analysts drawing parallels to Trump's previous term when the dollar initially gained before topping out.
Technologically, ETH's upcoming Pectra upgrade, slated for early 2025, is generating buzz. This upgrade is expected to enhance scalability and efficiency, potentially catalyzing ETH's next major move. However, security concerns persist in the crypto space. With the market showing volatility, there's an increased risk of scams targeting new entrants seeking quick gains. Traders and investors are advised to exercise caution and verify information through official channels.
A project to watch, JetBolt (JBOLT), an emerging project gaining traction with its zero-gas technology and integrated Web3 wallet. This innovative approach could potentially reshape transaction dynamics in the crypto ecosystem.
