Key Points
- Cryptocurrency prices varied last week due to tariff concerns, interest rates, and the $1.4 billion Lazarus Group hack on Bybit.
- Bitcoin (BTC), Optimism (OP), and Sui (SUI) are expected to be the center of attention this week due to their respective market movements.
Cryptocurrency market showed mixed performance last week, influenced by a variety of factors including tariff worries, interest rate movements, and a large-scale hack by the Lazarus Group on Bybit, which resulted in a loss of $1.4 billion.
Bitcoin’s (BTC) value remained under the $100,000 threshold, while Ethereum (ETH) fell below the $3,000 mark. The crypto fear and greed index shifted to a neutral position, with Bitcoin maintaining a 60% dominance. The article delves into why Bitcoin, Optimism (OP), and Sui (SUI) are anticipated to attract attention this week.
Bitcoin’s Market Movement
Bitcoin, the largest cryptocurrency, is expected to draw attention this week as its technical indicators suggest a potential significant market movement in the near future. The cryptocurrency has been forming a symmetrical triangle pattern over the past few weeks, as shown in the daily chart.
The two lines of this triangle are nearing their confluence level, indicating that a significant move is likely to occur soon, possibly this week since it marks the end of the month. The critical support and resistance levels to monitor are $88,960 and $109,100 respectively. A drop below the support level of $88,960, the lowest level in January, could suggest further declines, possibly to $73,350, the highest point in March of the previous year. Conversely, a strong upward move beyond $109,080 could signal further gains to $110,000, followed by $122,000.
Optimism and Sui Tokens
Optimism, a major layer-2 project in the crypto industry, is also expected to be in focus this week as it plans a significant token unlock. Tokens worth over $38 million will be released on Wednesday, equivalent to 2% of the float, or the number of tokens actively traded in the market. This is a significant but not overwhelming increase in circulation.
The token unlocks are happening at a time when the OP price is at a key level. It was trading at $1.077 on Sunday, the lowest swing in August of the previous year. Optimism has also formed a bearish flag pattern, indicating potential further declines in the coming weeks. This could push it to the next key point at $0.791, its lowest level on February 3. The Optimism token was launched by the Optimism Foundation, a non-profit organization. The OP coin powers governance and incentives within the Optimism Collective, a system designed to fund public goods and decentralization initiatives.
Sui, a leading layer-1 network, is also expected to attract attention as it unlocks tokens worth $111 million, equivalent to 1.07% of the total float. To date, it has unlocked 39% of all its tokens, with the final unlock anticipated to occur in 2069.
The SUI token has declined by 38% from its highest level in January and has moved below the 50-day moving average, indicating a bearish trend. However, it has also formed a falling wedge pattern, a common reversal sign, and a small double-bottom pattern, suggesting a potential strong rebound in the coming weeks. A drop below the support at $2.91 would invalidate this bullish view.
The Sui Layer-1 network was developed by Mysten Labs, a blockchain infrastructure company established in 2021 by former Meta engineers. The company is led by CEO Evan Cheng, CTO Sam Blackshear, and co-founders George Danezis, Avery Ching, and Kostas Chalkias. The native cryptocurrency of Sui powers the network by facilitating gas fees, staking for security, governance participation, and DeFi applications.
