Decentraland Carnival

Chart of the Day

After failing to bounce back to the $48k level, BTC has dipped further below $47k, even setting a local low near the $45.9k level in the early hours of Thursday. Although it has since risen back above the $46.5k level, BTC's potential for any upside movements is still largely impinged by the immediate resistance zone near the $47k level. In the same vein, ETH also saw an accelerated decline below its $3,700 support level, and is currently consolidating its losses after only just bouncing back from a new low of around $3,580 that was set within the past 24 hours. This market downturn is likely due to the imminent expiration of $6 billion worth of BTC options contracts on Friday, and looks set to only be a short-term fixture. However, in looking at some on-chain data points, there are some worrying signs for BTC and the crypto market at large. Based on the BTC Holdings chart, it appears that most BTC whales and long-term HODL-ers did not accumulate any more BTC during the latest price dip. Additionally, it can also be observed that there is now a growing tendency for the smaller-time retail traders to distribute the BTC that they hold. Although retail traders no longer have as much power to sway the market as they previously had (due to the influx of larger institutional players), their tendency to sell at a price much lower than the previous market top is still a worrying signal. Not all is doom and gloom in the crypto market though, as several mid-cap tokens like ALGO and NEAR have still managed to record impressive gains within the last 24 hours on the back of technological upgrades and the introduction of new liquidity incentive programs.

Talk of the Town