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- 🟣 Back in the black
🟣 Back in the black
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Crypto markets are recovering from a rough last week, during which bitcoin twice dipped below $63,000.
A record five consecutive days of bitcoin ETF outflows in the US contributed to the malaise that included baseless FUD on EU regulation of wallets.
As of 1 pm ET, BTC has invalidated the fairly ragged but bearish head and shoulders chart pattern that was pointing toward price targets in the low fifties if confirmed.
Still, some analysts think the present consolidation range has time to expand before resolving.
John Glover, the chief investment officer of Ledn, for instance, fancies an Elliot Wave approach which up until now looked like a “Wave 4 correction,” with “the first target of $62k,” and calling for a potential “deeper correction to $56k in the coming days before we continue the trend higher.”
That will look a lot less plausible if BTC starts closing dailies above $69k again.
“With so many people talking about the upcoming halving and the impact of the US ETFs, it’s clear that the market is sitting long in anticipation of further price appreciation,” Glover continues in a note to Blockworks. “That market positioning is exactly why a further shakeout of week longs may take place.”
Translation: People are still too bullish. Let’s see.
The memecoin rotation is in play, with Base memes catching a strong bid. For instance, $DEGEN — a Farcaster favorite — has drummed up 115% since Friday and now has an FDV north of $600 million.
No doubt there are a slew of newer names that by the time I hear about them will be time to dump.
RWA-related names are also rocketing — such as MPL, CPOOL and GFI, likely following ONDO higher — after last week's news of a Blackrock fund on Ethereum.
TVL growth on popular L2s:
Source: GrowThePie.xyz / L2beat
Base has added about $500 million in TVL over the past week — up about 40% — while market leaders Arbitrum and Optimism are treading water.
Parallel Colony is the first major implementation of AI agents in gaming in crypto. The incorporation of AI distinguishes it from other crypto games that have historically been more focused on farming simulators and derivatives of existing games.
Although Ondo Finance has experienced growth stagnation over the past few months, they remain a significant player in the tokenized security space, with their recent multichain expansion and their dive into broader tokenized assets through Ondo GM potentially revitalizing growth.
The BTC funds by BlackRock and Fidelity have both brought in net inflows during each of their first 50 days trading.
Binance is also reportedly facing tax evasion charges from the country.
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The insights, views and outlooks presented in the report are not to be taken as financial advice. Blockworks Research analysts are not registered broker/dealers or financial advisors. Blockworks Research analysts may hold assets mentioned in this report, further outlined in the Firm’s Financial Disclosures.
