Bitcoin, Ether dip but more bullish times ahead?

Bitcoin fell Thursday morning in Asia after briefly breaking the $30,000 resistance level. Ether also declined, while other top 10 non-stablecoin cryptocurrencies traded mixed. Cardano’s ADA token led the winners. Meanwhile, the Forkast 500 NFT index rose. However, trading volume declined after a surge earlier in the week. US stock futures were down on Wednesday but traded higher in Asia on Thursday morning. Investors are now awaiting key US inflation data to see how it will impact Fed decision-making on interest rates.

Bitcoin is falling but faces an uptrend

According to CoinMarketCap data, Bitcoin is down 0.72% over the past 24 hours to $29,592.49 (as of 7:30 a.m. Hong Kong) but is up 1.59% on the week. The world’s leading cryptocurrency hit a high of $30,093.44 on Wednesday night but has struggled to stay above the $30,000 line.

Although bitcoin prices remain range-bound, the token is set for an uptrend, said Samer Hasn, a market analyst at Australia-based global multi-asset broker XS.com.

“We saw the number of open positions (in bitcoin) increase on August 8 to the highest level since October 2022 at more than 10.4 billion positions,” Hasn said.

He added that a high number of open positions, including long and short positions, generally precedes an increase in momentum and increased volatility.

“The increase in the number of open positions reflects a more positive sentiment among investors with greater recognition,” Hasn said, adding that the new offering of the PYUSD stablecoin from PayPal – one of the world’s largest payment companies – will improve access to cryptocurrency networks.

Similarly, spot bitcoin exchange-traded fund applications from major investment firms such as BlackRock and Wisdom Tree, if approved by US regulators, will be available to “individual investors, institutional investors and large corporations that may not be directly involved in cryptocurrencies can invest, offer more access”. ‘ Hasan said.

Along with Bitcoin, Ether is down 0.21% to $1,856.01 but is up 0.94% weekly. Other top 10 non-stablecoin cryptocurrencies traded mixed, with Cardano’s ADA being the gainers while Binance’s BNB, Tron’s TRX, and Litecoin saw losses.

Cardano’s ADA is up 1.03% to $0.3016, up 0.75% weekly on the Cardano mainnet started the bitcoin token cBTC on Wednesday. The launch will allow bitcoin holders to tokenize their bitcoin on the Cardano network as cBTC and use it in Cardano’s decentralized finance (DeFi) applications.