Matrixport Analyst Says “Wall Street Coin Crash Is Coming”; Bitcoin, Ethereum and Solana Announce Price Predictions

According to Matrixport analyst Markus Thielen, the cryptocurrency market is facing a perfect storm of bearish factors that could trigger a massive sell-off in the coming weeks.

Thielen, Solana (SOL), Ethereum (ETH) And Bitcoin (BTC) He claimed that it showed signs of weakness and fragility and that investors should be prepared for a possible crash.

solana

Thielen says Solana now faces major downside risk due to the impending liquidation of FTX’s creditors. In his published thoughts on SOL, the analyst said:

“In our 2023 Outlook report (released in December 2022), we expected the price of Solana (SOL) to potentially double in 2023 as we expect a solid cryptocurrency rally this year. At the time, SOL was trading at $13 and the risk/reward ratio looked favorable. SOL even rose to around $27 in July.

As we warned last Tuesday, creditors of FTX are likely to sell a total of $685 million worth of SOL positions starting this week, with FTX expected to sell at least $3.4 billion in cryptocurrencies, which will create a supply of crypto in the market for the rest of the year. Last week SOL was down -6%.

In response to the anticipation of these sales, SOL’s funding rate has turned negative (-14% annually) and may fall further. Yesterday, we saw SOL break the $19 support level with increasing volume. “This situation is worrying and larger downside targets are $15 and $10.”

Ethereum

Analyst Thielen listed his thoughts on Ethereum as follows:

“It looks like Ethereum is no longer an “ultrasound currency” either, as last week’s ETH mint (15,000 ETH) was larger than the demolition (11,000 ETH). We’ll have to keep track of what this means (or whether it even matters).

And with less revenue growth than expected, a breakout could lead to a price crash, especially as Ethereum approaches the psychologically important $1,600 level.

From a technical perspective, ETH’s rise above the $1,650 price level makes us extremely cautious about the current situation, and even a scenario where the price drops sharply towards the end of the year is foreseeable. A drop below $1,500 could rekindle the idea that ETH could drop to $1,000, a level that seems reasonable based on revenue projections for the ETH ecosystem.”

Bitcoin

Matrixport analyst stated the following about Bitcoin:

“Bitcoin (BTC) price is below its 50-day moving average ($27,731) and is currently at $25,836, a bearish sign; This represents a price movement of -0.5% in a week.

Ethereum (ETH) price is below its 50-day moving average ($1,752) and is currently at $1,617, which is also a bearish sign; The price fell -1.1% in a week. The general trend indicates a downward and pessimistic market sentiment. Bitcoin’s weekly trading volume dropped 37%, while Ethereum’s trading volume dropped 31%. This low liquidity can expose the price to downside risk.

ETH is currently underperforming Bitcoin, with the 20-day trend average revealing that the ETH/BTC ratio has dropped. The beta factor affects the performance of cryptocurrencies; This is a negative sign, so it’s better to be cautious. As of now, Bitcoin is still outperforming the Nasdaq (+65% vs +32%), but as all Bitcoin returns this year have arrived in just three weeks, Bitcoin’s uptrend can be seen as erratic.

Bitcoin futures funding fee rates are positive (3.6%), which is a positive sign, as is ETH’s funding fee rate (6.1%), which is also a positive sign. But overall, the difference in funding fees is relatively small, especially for altcoins, and we don’t interpret these numbers as “positive.”

*Not investment advice.