The relatively calm weekend was disrupted yesterday with substantial volatility around the $84,000 mark after some large short positions opened on Hyperliquid.

Most altcoins are on a slight retracement today, while BNB has jumped by over 6%. PI, on the other hand, has dumped by almost 10%.

BTC Volatile at $84K

The previous business week went in a highly fluctuating manner, and it all started on Monday with a price slump from $86,000 to $80,000. After a brief recovery to $84,000, BTC headed straight south again on Tuesday and plunged to a four-month low of under $77,000.

Following this $9,000 decline in less than two days, BTC finally reacted positively and quickly reclaimed the $80,000 line. It kept climbing in the following days, especially after the positive US CPI data for February, and jumped above $85,000 on Wednesday.

However, that was another short-lived rally, and the momentum couldn’t be maintained. A drop to $80,000 followed, but BTC managed to defend that level and jumped to $84,000 over the weekend. Most of it was spent there, aside from a brief spike to $85,000 and a subsequent plunge to $82,000 after a trader opened a $366 million short on Hyperliquid.

As of now, BTC stands just under $84,000, with a market cap of $1.655 trillion on CG. Its dominance over the alts is at 58.6%.

BNB Up, PI Down

The biggest gainer from the larger-cap alts today is Binance Coin, which has jumped by over 5%. As a result, the asset now trades well above $630. In contrast, most other alts from this cohort are in the red.

ETH, XRP, ADA, and TRX are down by up to 1%, while SOL has plunged by over 3.5%. PI is the biggest loser, on the other hand, dumping by 10% to under $1.35.

More volatility comes from OKB and MNT, which have pumped by 5-6%, while TRUMP is down by 3%.

The total crypto market cap has declined by over $20 billion since yesterday and is well below $2.830 trillion on CG.

Despite the bearish sentiment in the crypto industry, the market capitalization of stablecoins has been on the rise. This growth amid the overall uncertainty drove the combined market cap of these crypto assets above $219 billion last week, placing them $10 billion away from Ethereum’s market cap at the time.

However, at the time of writing, data from CoinMarketCap shows the stablecoin market cap sitting around $233 billion, surpassing Ethereum’s current capitalization by at least $3 billion.

Stablecoin Supply Is Growing

Usually, there are two primary reasons stablecoins begin to see an increase in their supply and, thus, market cap: a rise in buying power or risk aversion.

Market analysts have always maintained that cryptocurrencies need to witness a rise in stablecoin liquidity for bitcoin (BTC) to experience a sustained rally. As with most bull markets, altcoins shoot up when BTC sustains an upward trajectory. With an increase in liquidity, users’ buying power surges, with investors positioning themselves to acquire more assets at lower prices after market sentiment improves.

The second reason, risk aversion, entails investors’ flight to safety. Since the market has been dumping for eight weeks, participants may convert their assets into stablecoins to preserve capital. This indicates that they are exercising caution and being even more careful in their investment approach.

On-chain intelligence platform IntoTheBlock believes the latter is the case currently. The firm stated that the growth in the combined stablecoin market cap is a strong indicator of rising caution in the market.

Stablecoins continue to gain ground amid market uncertainty, pushing their combined market cap to around $219 billion this week.

Remarkably, they’re now only $10 billion away from Ethereum’s market cap, a strong indicator of rising caution in the market. pic.twitter.com/35O5fbyeLW

— IntoTheBlock (@intotheblock) March 14, 2025

Could This Cycle Be Halfway in?

Furthermore, the growth in stablecoin supply raises concerns about the market hitting its peak for this bull run because such surges have historically aligned with cycle highs. However, IntoTheBlock insists that this cycle is still halfway in.

“In April 2022, supply hit $187B—just as the bear market started. Now it’s at $219B and still rising, suggesting we’re likely still mid-cycle,” the intelligence firm stated.

Moreover, historical data also shows that the market has peaked 12-18 months post-halving. Since the last halving was in April 2024, IntoTheBlock believes the bull cycle will likely end mid to late 2025, even though institutional flows and regulatory changes have reshaped this cycle.

Meanwhile, recent stablecoin activity examined by market analytics platform CryptoQuant reveals that investors, especially whales, are accumulating BTC, regardless of the continued correction in prices.

Ethereum’s price is yet to show any willingness to recover, as the market has been moving sideways over the past week.

However, the current level can initiate a rebound if the price holds above it.

Technical Analysis

By Edris Derakhshi (TradingRage)

The Daily Chart

ETH’s daily chart remains bearish, with the price struggling to hold above the $1,900 support area after a prolonged downtrend. A breakdown of this level could reinforce further downside, potentially targeting the $1,600 support zone if selling pressure persists. The 200-day moving average remains well above, located around the $2,900 mark, signaling a strong bearish bias.

Meanwhile, the RSI is in the oversold territory, which suggests a short-term bounce could occur. A decisive break above $2,000 with strong volume could shift momentum toward $2,200, but failure to do so would likely confirm continued weakness in the short term.

The 4-Hour Chart

The 4-hour chart shows a breakout from the descending wedge pattern, indicating a potential trend reversal. However, price action remains trapped around the $1,900 resistance zone, with multiple rejections signaling a lack of strong bullish momentum.

The RSI is recovering but still below overbought conditions, suggesting room for further upside if ETH can close above this key resistance area. A confirmed breakout above $2,000 could trigger a rally toward $2,100-$2,200, while failure to hold above $1,900 may lead to a retest of the $1,800 support level. Volume confirmation will be crucial in determining whether this breakout sustains or results in another rejection.

Onchain Analysis

By Edris Derakhshi (TradingRage)

Exchange Reserve

The Ethereum exchange reserve chart shows a continuous decline in the amount of ETH held on exchanges, currently near multi-year lows at around 18.8 million. This suggests a long-term trend of accumulation, as fewer tokens are available for immediate selling. Typically, declining exchange reserves indicate that investors are moving ETH to self-custody or staking, reducing potential selling pressure.

Despite the price drop to $1,900, the lack of a significant spike in exchange reserves implies that panic selling might not be fully materialized, which supports the idea that long-term holders somehow remain confident. From a technical perspective, ETH is at a critical resistance zone near $1,900-$2,000, and if buyers step in, the supply squeeze could lead to a strong recovery.

However, if the asset fails to reclaim key levels and sentiment worsens, some ETH could flow back to exchanges, increasing selling pressure. Watching reserve trends alongside price action will be crucial in determining whether the current downtrend is nearing exhaustion or if further downside remains likely.