In the crypto market bloodbath, Bitcoin and Ethereum are down at key levels with rising bearish risk. With strong hands and smart traders buying the dip, will the market take a quick turn?
By Vishal Dixit
Edited by Julia Sakovich
Updated
3 mins read
The crypto market crash has recorded one of the highest liquidations ever in the crypto market. However, despite sellers shocking the cryptocurrency market, many strong players continue to remain optimistic.
With funds ready to purchase blue-chip tokens like Bitcoin BTC $83 984 24h volatility: 1.8% Market cap: $1.66 T Vol. 24h: $27.53 B and Ethereum ETH $1 920 24h volatility: 1.3% Market cap: $231.58 B Vol. 24h: $11.82 B at discounted prices, the crash comes as the best dip opportunity to buy. Should you also consider buying Bitcoin and Ethereum at discounted prices despite the high volatility?
Amid the broader market crash, 1inch’s investment fund has acquired Ethereum and Wrapped Bitcoin at discounted prices. 1inch is a distributed network available for top blockchains like Ethereum, BNB Smart Chain, Avalanche, Phantom, Klaytn, etc.
The fund mainly focuses on NFTs followed by automated market makers, cross-chain tokens, decentralized autonomous organizations, and governance tokens. The last funding by 1inch’s investment fund was provided to EYWA in May 2024.
Currently, the fund has purchased 7,289 ETH tokens worth $10.44 million. Along with the biggest altcoin, the fund also acquired Wrapped Bitcoin worth $5 million.
With 52.07 WBTC WBTC $83 886 24h volatility: 1.9% Market cap: $10.81 B Vol. 24h: $191.98 M in their holding, the fund over the past 24 hours has spent a total of $25.44 million. The average buying price for Ethereum remains significantly higher at $2,804, while Wrapped Bitcoin was acquired at an average price of $96,021.
Historically, the 1inch team has been one of the smart traders in the industry. The fund has made millions by trading Ethereum, Uniswap, and their own token, 1inch, in the market.
With 1inch buying key tokens like Bitcoin and Ethereum, the analyst highlights the two major cryptocurrencies struggling at key price levels. In a recent tweet from Martinez Ali, a crypto analyst, Bitcoin hinges on a potential downfall.
Despite the recent price correction, #Bitcoin $BTC traders still hold a 3.36% profit margin.
Since 2022, local bottoms have typically formed when the profit margin drops below -12%, suggesting there could be more room for downside before a true bottom is in. pic.twitter.com/WOlI0BSPTJ
— Ali (@ali_charts) February 3, 2025
Based on the BTC trader’s profit margin remaining at 3.36%, the analyst projects a potential downfall in BTC. This is based on the historical price movement where BTC has formed local bottoms when the profit margin drops below negative 12%.
This has been consistent since 2022 and signals a potential room for downside in BTC before a true bottom is formed. However, in Ethereum, the analyst maintains significantly bullish optimism.
If this is a head-and-shoulders pattern, #Ethereum $ETH must hold above $2,700 to keep the bullish structure intact and have a chance of reaching $7,000! pic.twitter.com/nR6TDg2jA4
— Ali (@ali_charts) February 3, 2025
With an inverted head and shoulder pattern, with a neckline at the $4,000 psychological mark, Ethereum is in the making of its right shoulder part. With a local resistance trendline keeping the Ethereum price under influence, ETH is currently testing its crucial support level at $2,700.
To complete this pattern, Ethereum must sustain above the $2,700 mark and break above the local resistance trendline to challenge the neckline. Based on the Fibonacci levels and the price trend analysis, the Fibonacci levels paint a potential target near the $7,000 mark.
While the crypto market faces extreme volatility, smart money like 1inch’s investment fund is capitalizing on discounted prices. Bitcoin may still have room for a downside before reaching its true bottom, but Ethereum shows bullish potential with its technical patterns hinting at a possible surge.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Vishal, a Bachelor of Science graduate, began his journey in the crypto space during the 2021 bull run and has since navigated the subsequent market winter. With a strong technical background, he is dedicated to delivering insightful articles rich in technical details, empowering readers to make well-informed decisions.
