Bitcoin and Crypto Now Set for a Parabolic Price Move as Institutional Interest in Ethereum Soars

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BitcoinBTC and Ethereum have been swinging wildly this week as traders try to get ahead of Federal Reserve interest rate hikes.

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Last week, the price of bitcoin rose above $30,000 per bitcoin, its highest level since June last year, but fell despite analysts calling for the start of a new “crypto cycle” and the founder of ‘Ethereum releasing a bullish price prediction.

Now, an under-the-radar but historically accurate bitcoin price indicator has turned positive as Ethereum’s institutional activity suddenly explodes.

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“Reserve risk just crossed 0 again. This bitcoin indicator signals huge potential,” bitcoin and crypto analyst Ali Martinez posted on Twitter alongside a Glassnode data chart showing that the price of bitcoin crosses the level for the first time since late 2021.

“When bitcoin’s reserve risk exceeds 0, it signals parabolic price movements,” Martinez said, pointing to historical data when in 2012, 2013, 2015, 2019, and 2020 it led to gains of 2,830. %, 566%, 6400%, 99%, and 487%, respectively.

However, bitcoin’s price action so far this week has undermined traders’ confidence.

“The market is struggling to find a reason to buy and support the price as the selling pressure and long sell off has driven the price lower this week as the US stock market loses direction,” Yuya said. Hasegawa, crypto market analyst at Bitbank. , said in an emailed note.

“Unfortunately, despite the decline, the bulls don’t seem to have given up yet, as the bitcoin futures funding rate is still positive, which could limit bitcoin’s higher potential and worsen its short-term downside. .”

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Meanwhile, Ethereum’s Shanghai upgrade earlier this month, the latest part of its transition to a full-fledged proof-of-stake network, has heightened expectations that the network could see renewed interest. for new investors.

“As expected, Shanghai was followed by massive Ethereum pullbacks,” K33 head of research Bendik Schei wrote this week in a report that described Ethereum’s institutional activity as “exploding” and added “The market overestimated selling pressure from Shanghai, leading Ethereum to eclipse bitcoin amid booming institutional activity.”

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I am a journalist with significant experience covering technology, finance, economics and business worldwide. As founding editor of Verdict.co.uk, I reported on how technology is changing business, political trends and the latest cultures and lifestyles. I have covered the rise of bitcoin and cryptocurrency since 2012 and traced its emergence as a niche technology in the greatest threat to the established financial system the world has ever seen and new technology the more important since the Internet itself. I’ve worked and written for CityAM, the Financial Times, and the New Statesman, among others. Follow me on Twitter @billybambrough or email me at billyATbillybambrough.com. Disclosure: I occasionally hold a small amount of bitcoin and other cryptocurrencies.

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