Bitcoin At Risk of A Correction, Ethereum Shapella Upgrade On the Horizon: Possible Short Trade Opportunity?

Date: 11/04/2023

Written by: Lykke

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Short Read

April 11, 2023 – Bitcoin (BTC), Litecoin (LTC), Ripple (XRP), Binance (BNB) are at risk of an imminent market correction within the next 24 hours on profit-taking after the bull market witnessed over Easter, according to ATTMO, a weather-inspired crypto AI forecasting tool. The bullish mood continues for Ethereum (ETH), which has upside potential, ahead of its Shapella upgrade on April 12.

Investors eagerly await tomorrow’s US inflation figures which will signal whether or not the Federal Reserve’s rate hike cycle is coming to an end.

Over a one-week horizon, ATTMO expects a slightly bullish market with upside potential for both major cryptocurrencies – Bitcoin and Ethereum. Smaller currencies should also benefit from this bullish mood and have upside potential.

Long read

Bitcoin (BTC), Litecoin (LTC), Ripple (XRP), Binance (BNB) are at risk of an imminent market correction within the next 24 hours on profit-taking after the bull market witnessed over Easter, according to ATTMO, a weather-inspired crypto AI forecasting tool. The bullish mood continues for Ethereum (ETH), Avalanche (AVAX), Dogecoin (DOGE), Polkadot (DOT), and Polygon (MATIC), which still have upside potential.

Bitcoin breaks through USD 30,000 threshold

The price of Bitcoin percent rallied 6.35 percent over the past 24 hours to a 10-month high, breaking through the psychological 30,000 US dollar threshold. The market capitalization of the world’s largest cryptocurrency has now overtaken that of Meta Platforms (Facebook) and ranks 11th just behind Tesla, data from 8marketcap show.

Bitcoin has surged more than 80 percent since the beginning of the year as the turbulence in the global banking sector witnessed in March resulted in renewed interest in cryptocurrencies. Investors diversified their assets and moved some of them to the cryptoverse. Investors betting that the Fed’s rate hike cycle is coming to an end now that inflation is expected to have peaked have also supported cryptocurrencies.

Ethereum gains ahead of Shapella upgrade

Ethereum rose 3.8 percent over the past 24 hours as Fortune selected its protocol as the best one ahead of Bitcoin’s in its new Fortune Crypto 40 ranking. The long-awaited upgrade of its proof-of-stake (PoS) mechanism on April 12 will enable Ethereum’s miners to withdraw coins they have staked partially or fully. More details can be found about the Shapella upgrade here. Ethereum is set to come under selling pressure as of April 12.

The combined market capitalization of the two cryptocurrencies makes up 63 percent of the crypto space. Among smaller currencies, XRP added 5.3 percent respectively. Investors are waiting for Judge Analisa Torres ruling in the Securities Exchange Commission’s (SEC) case against XRP’s owner Ripple. SEC claims that XRP is an unregistered security and should fall under its jurisdiction. Ripple on the other hand argues XRP qualifies as a commodity. This matters as the regulation commodities fall under is much less strict.

Dogecoin put on 3.3 percent but is down 13 percent over a one-week period. The currency had surged as Twitter owner Elon Musk exchanged the social media platform’s iconic blue bird with that of Dogecoin’s dog logo for a couple of days.

US inflation tomorrow

Investors focus on the latest US inflation figure, which will be released tomorrow. March inflation is forecast to drop to 5.2 percent year-on-year compared to 6 percent in February, according to the analyst consensus. Core inflation, which excludes food and energy prices, is however set to edge higher to 5.6 percent in March, the estimates show.

This upward in core inflation means that the Federal Reserve will have to continue to raise its interest rates when it meets in early May, to curb inflation. Higher interest rates make safe-haven assets such as bonds more attractive to hold than risker assets such as stocks and crypto assets.

DISCLAIMER
These forecasts are not trading advice; they are only decision-support tools. They do not include information that is specific to the user; in particular, they do not account for their personal risk appetite or market assessment.