BTC holds up as US DoJ clears path to spot ETF approval
- Bitcoin price must hold above the critical support at $36,788 to keep hope for a continuation of the intermediate trend alive.
- The $1,935 support level continues to hold for Ethereum price but the slump is likely to continue 5% lower.
- Ripple price extends south, invalidating the bullish thesis with the potential for a further 8% slump to $0.5392.
Bitcoin (BTC) price remains bearish, but there is hope, after the US Department of Justice may just have cleared the path for the approval of spot BTC exchange-traded funds (ETFs). According to some analysts, one of the stumbling blocks to the approval was the dominance of Binance exchange in the industry.
Lots of chatter on this Blackrock #Bitcoin ETF. And rightfully so. Blackrock more or less IS is the US government. They’ve also received approval on 575/576 of ETF applications.
One thing I’ll say- there is no chance, and I mean zero, that this ETF is approved with Binance in…
— Travis Kling (@Travis_Kling) June 16, 2023
Also Read: With Binance market dominance under threat, experts say path for spot Bitcoin ETF is now clear
Bitcoin price tests key support
Bitcoin (BTC) price is showing weakness, recording a 3% fall on the day, with most of these losses recorded following news around Binance exchange. Testing the critical support at $36,788 and with the Relative Strength Index (RSI) showing weakening momentum, BTC could fall.
Increased selling pressure below the $36,788 mean threshold of the supply zone stretching from $36,276 to $37,301 could open the drains for an extended fall, with experts anticipating a crash to the $30,000 psychological level.
Already, the Awesome Oscillator’s (AO) histogram bars are soaked in red and inching closer to the midline by the day. This points to the bears steadily taking over.
BTC/USDT 1-day chart
Conversely, increased buying pressure from investors looking to capitalize on the retest of $36,788 could send Bitcoin price north, first clearing the local top at $37,972 before testing the range high at $37,980 and ultimately claiming the $40,000 psychological level, 10% above current levels.
Also Read: Bitcoin price holds above critical support at $36,788 as Binance CEO CZ begins BTC halving countdown
Ethereum price struggles to keep $1,935 support base
Ethereum (ETH) price risks losing the critical support at $1,935, marking the midline of the supply zone turned bullish breaker that extend between $1,864 and $2,004. If the $1,935 level fails to hold, it could spell doom for token holders, with ETH likely sliding to the $1,800 psychological level, or in the dire case, invalidating the bullish thesis below $1,753.
Both the RSI and the AO support this outlook, edging south as momentum continues to fade.
ETH/USDT 1-day chart
On the other hand, increased buying pressure, enough to vindicate Ethereum price from the grasp of the aforementioned supply barrier above $2,009 could spur optimism, setting ETH back above the ascending trendline. This could clear the skies for a stretch to $2,136, denoting a 10% ascent from the current level.
Also Read: Ethereum price dilemma or buy signal before 60% rally
Ethereum FAQs
Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.
Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.
Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.
Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.
Ripple price could invalidate the bullish outlook with a bold move
Ripple (XRP) price could invalidate the bullish outlook if it decisively breaks and closes below $0.5981 on the daily timeframe. Increased selling pressure below the current level could plunge XRP into the consolidation phase between $0.4735 and $0.5392.
Momentum indicators also corroborate the case to the downside, suggesting Ripple price downtrend may not be over just yet.
XRP/USDT 1-day chart
On the flipside, a resurgence by the bulls could restore hope for XRP holders by setting Ripple price back above the lower trendline of the triangle at $0.6603. In a highly bullish case, the payments token could pull higher to test the Fair Value Gap (FVG) at $0.7512, restoring balance in the XRP market.
Also Read: Ripple executive says US DoJ decision is “necessary” to bring crypto into compliance
