Both Bitcoin (BTC) and ethereum (ETH) continued to fall in value on Monday, following a mixed performance for the two largest coins over the weekend. Traders are unsure of what to expect next, with some analysts predicting that the next near-term movement will likely signal further moves in the same direction.
After 24 hours, Bitcoin was down almost 3% and up only one percent in the last seven days, trading at USD 42,335. It stood at USD 3,233 simultaneously, down over 4% in the last 24 hours but up 2% for the week.
On-chain analytics firm Glassnode described the current bitcoin market as “docile,” with market participants now assessing the impact of high inflation and tightening monetary policy from the US Federal Reserve (the Fed).
Short-term volatility has resulted from the Federal Reserve’s shift in tone, and there is now a risk that it will also “control its medium-term prospects,” according to Glassnode.
Analysts predict that the next move in bitcoin’s price will determine its medium-term direction. There is a possibility that further weakness will force traders who are already losing money to “capitulate” if the bullish impulse is strong enough.
Earlier this week, Glassnode issued a similar warning, noting that open interest in bitcoin futures had reached record highs.
Glassnode previously predicted a bullish short squeeze based on “extreme leverage” and “significantly oversold conditions” on the blockchain. On the other hand, the predicted short squeeze has yet to materialize.
Marcus Sotiriou, an analyst at digital asset broker GlobalBlock, expressed optimism about the market in comments shared with Cryptonews.com in light of recent market activity.
“Bitcoin fell off yesterday as equity markets tumbled after it bounced from under USD 40,000 to USD 44,500. At the moment, it’s consolidating around USD 42,500, but once the equity market reaches stability, I think crypto will bounce back to the USD 45-46k region in a few days,” the analyst said.
According to a recent report from crypto research firm Delphi Digital, long-term bitcoin holders have taken advantage of January’s lower prices to add to their holdings.
According to the firm, long-term holders sold their coins in November and December last year. According to the report, the shift from short-term “weak hands” to long-term “strong hands” can be seen as part of the new trend.
According to Binance Futures, bitcoin is currently at a “make-or-break point” of USD 43,000, according to the report. According to the exchange’s analysts, and even more “sustained dip” below USD 41,000 – USD 37,000, according to the exchange’s analysts, could set off a more significant selloff, bringing BTC all the way down to its 100-week moving average of USD 30,000.
It appears that traders are becoming pessimistic about the future price action of bitcoin, as only 67.82 percent of all accounts remain net long,” the report stated regarding the outlook for bitcoin.
ETH’s price movements had largely mirrored bitcoin since January 7, when bad jobs numbers hit the stock market and the two largest cryptos.
Despite today’s dip, the price of ETH has risen about 10% since its low of USD 2,928 on Monday following the release of data, despite a recent dip in the market.
In comparison to its all-time high of USD 4,868 on November 10 of last year, the value of the second most valuable cryptoasset is still down by about 33% today. Since its all-time high of USD 69,000 on November 13, Bitcoin is down 38%.
Read more:
Comment Template