Cryptocurrency Price Prediction: The cryptocurrency market is deepening its correction phase with the price of Bitcoin falling below the $42,000 level on Thursday. With the Bitcoin ETF news selling theory, altcoins have seen a clear supply squeeze. According to data analysis platform Coinglass, the market has seen $247.52 million worth of highly leveraged futures contracts betting on higher prices liquidated since yesterday.
The continued selling pressure can be attributed to market concerns about the potential liquidation of Bitcoin assets by Grayscale, in response to investors unloading shares of the GBTC ETF. Following the introduction of spot bitcoin ETFs last week, the Grayscale Bitcoin Trust (GBTC) has seen significant outflows, withdrawing a total of $2.2 billion in just the past week.
However, prominent cryptocurrency investor Scotmilker suggested that the theory of Grayscale offloading its Bitcoin holdings is not inherently malicious. Rather, it is a typical operational aspect of an ETF. He said:
Grayscale does not effectively “flood the market.”
People sell GBTC which means Grayscale has to sell an equal amount of Bitcoin.
Amid an extended correction, cryptocurrencies such as Solana(SOL), Celestia(TIA), and (MANA) may provide a suitable pullback opportunity for bearish traders.
Solana(SOL) price is approaching a decisive breakout
The price path of Solana (SOL) is currently showing a bullish flag pattern, confined within two parallel trend lines. This pattern appears after the value of SOL fell by 25.3% over the past month, with the price stabilizing near $94.4.
These formations typically indicate a temporary consolidation phase in a broader uptrend, providing a strategic entry point for investors. The positive outlook for Solana is reinforced by the upcoming release of Solana Mobile's second smartphone, following the success of the Saga phone.
A recent tweet from Solana Mobile It highlighted the huge demand in the market, with 30,000 pre-orders for the crypto-focused device in just 30 hours.
If this positive momentum catalyzes a successful breakout of the flag pattern, SOL could see a spike in buyer activity. This scenario could potentially pave the way for a 30% rally, targeting the previous resistance level of around $126.
Decentraland(MANA) price is eyeing $0.7 as demand pressure rises when the market declines
Amid the market uncertainty surrounding the launch of the Bitcoin ETF, Decentraland (MANA) price has been in a corrective trend since the end of December. The coin witnessed a significant decline of 22.5% within a month, reaching its current value of $0.47.
However, the coin price managed to stabilize above the 61.8% Fibonacci retracement levels, which is evident by the rejection of the long tail and sideways movement. If the coin can break through the immediate resistance of $0.5, buyers will have a decent footing for its rally beyond $0.6.
If the price successfully crosses this barrier, buyers will get additional confirmation of the continuation of the uptrend and will help the value of the coin reach $0.7.
The MACD line and signal line approaching a bullish crossover confirms that buyers are regaining strength for a new recovery.
Celestia (TIA) Quote Opportunity Pullback Amid Market Correction
Celestia Coin (TIA) has shown a significant recovery in the past two months, marked by an ascending support trend line. This upward move has been consistently supported by an uptrend line, which indicates strong buyer activity and accumulation during pullbacks, a key factor for maintaining upward momentum.
However, with the current broader correction phase, TIA price has formed a new high at the $20.39 mark which has declined in value by 10.3% in the past five days. Currently trading at $18.2, the coin price fell another 14-15% to revisit the lower trend line around $15.34.
If history repeats, Celestia price should successfully rebound from this support which could fuel a 37% rally to chase the $25 mark.
Furthermore, the 20-day and 50-day EMAs provide additional support, enhancing the currency's stability during times of market correction.
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