Daily News | US CPI Report Draws Close Attention from Investors as Shapella Triggers Staked Ether Reshuffle and BTC Reaches 10-Month High of $30K
Crypto Daily Digest: Bitcoin hits 10-month high at $30K, but will it hold as market awaits US CPI and Ethereum upgrade?
Bitcoin has breached the $30,000 mark for the first time in ten months, prompting questions about its ability to hold its price at higher levels. The move comes as investors await the US consumer price index report for March, which could have implications for the crypto market’s rally. The recent increase in trading volumes suggests conviction behind the move, but there is a bearish divergence between Bitcoin‘s price and momentum. Traders may look at the balances of BTC on exchanges to gauge investor sentiment. An increase in balances may suggest potential price declines, while a decrease may indicate Optimism.
Meanwhile, Ethereum‘s upcoming Shapella upgrade, set for Wednesday, has sparked concerns about centralization as it could prompt a potential reshuffle of staked Ether. Liquid-staking services such as Lido may benefit from the reshuffle, but uncertainty around the re-staking or selling of withdrawn Ether could pressure the price of Ether. Governance tokens issued by these services could also be impacted. There are likely to be bumps along the way during this process.
In the wider market, shares of Bitcoin mining firm Marathon Digital Holdings, exchange Coinbase, and business software company MicroStrategy, a large corporate holder of BTC, were all up more than 6% as crypto-related stocks continued their momentum from Monday.
Ether (ETH) $1893.49 (-0.18%) - Neutral Outlook
Ether has formed a double-top pattern just below the monthly level of $1945 on the daily timeframe, which typically indicates an upcoming reversal. However, looking at the previous price movements suggests that Ether is still in an upward trend, with buyers interested in entering at around $1800.
On the 1H timeframe, $1824 was the latest Spring/Point of Interest for the bull before the latest run-up, meaning we need to be asking where would these smart money distribute their supply. On the other hand, the trend may flip temporarily if the price closes below $1880.
Considering the potential outlooks on different timeframes, we can expect the current trend to continue, but with a possibility of a slight retracement due to the daily double-top formation. Therefore, while maintaining our long position, we need to tighten our stop loss level when trading on the lower timeframe.
Overview:
- Closest hourly support zone: 1885 - 1878
- Closest hourly resistance zone: 1897 - 1904
- Key Level: 1918 (Monthly High of Mar. 2021)
Hourly Resistance zones
- 1897 - 1904
- 1927 - 1937
- 1945 - 1950
Hourly Support zones
- 1885 - 1878
- 1872 - 1863
- 1844 - 1840
Macro: Narrow Range Trading and Short Positions Accumulate Amidst Inflation Uncertainty
Investors are keeping a close eye on inflation data, which could signal whether the Federal Reserve will raise interest rates. US stocks traded in a narrow range, with the Nasdaq 100 falling by 0.7% and the S&P 500 ending the day almost unchanged. The report on consumer prices, due on Wednesday, is expected to show a 0.4% monthly increase in the core consumer price index. If inflation runs higher than expected, the Fed’s plan to cut rates aggressively by year-end may be at risk, which could leave markets vulnerable to a pullback.
Meanwhile, futures for equity benchmarks in Australia and Japan are expected to rise in Asia, while contracts for Hong Kong remain little changed. The S&P 500 closed almost flat on Tuesday, while the tech-heavy Nasdaq 100 fell for the fifth time in six days as investors assessed the likelihood of another rate increase in May. US Treasuries were mixed, with the policy-sensitive two-year yield rising further above 4%. Additionally, oil rose above $81 a barrel.
Bank of America Corp. data showed that hedge funds and other speculators have been accumulating the deepest short positions since 2011. This adds to the current market uncertainty, as investors await the inflation data due on Wednesday. The outcome of the data will help determine whether the Federal Reserve will raise interest rates, which will significantly impact the markets.
