Bitcoin Dip: An opportunity For Many
News of the movement of two tranches of 5,000 BTC each early last month engulfed the cryptocurrency community. The fact that the bitcoins flowed to other addresses instead of exchanges suggests that they may have been sold over the counter (OTC) to new owners. This was good news because it prevented a drop in the market price of bitcoin because it wasn’t being sold on exchanges.
In addition to this solace, the ongoing negative financing rate offered some support to the cryptocurrency markets, allowing BTC to relax back beyond $20,000 and ETH to rise above $1,500. “New whale accumulation also benefited prices, with BTC welcoming 103 new whale wallets containing at least 100 BTC compared to the week before, suggesting that new dip buyers are still many, snatching up BTC anytime a good opportunity avails,” claims New Whales Support BTC Price. 100.
A decrease In the quantity of BTCs on spot exchanges has confirmed that purchasers are continuing to use the downturn to amass more BTC, and I wish I was one, as seen by this string of new whale accumulation. A great opportunity to top up and clean up. According to the current situation, the amount of BTC on exchanges has decreased to lows last seen in November 2018, which was in the midst of that bad market cycle.
It's interesting to note that while the supply of BTC on exchanges increased during the end of the 2018 bear market, during this cycle the supply has been declining regardless of price movement. This demonstrates a hodler trend that is steadily reducing the amount of Bitcoin in circulation that is available for trading. This keeps raising the question in my mind: Will this trend cause Bitcoin’s price to rise significantly more during the next bull run? Time will only tell.
However, as global central banks continue to tighten monetary policies, the price of BTC was unable to gather enough momentum to eventually move over $20,500, demonstrating that bulls lacked fortitude in the face of a deteriorating macroeconomic climate for the cryptocurrency market.
It's Interesting that the ETH Merge also takes place on September 15th. This synchronicity has sparked a number of hypotheses about what might transpire in the cryptocurrency market on that day. Most theories are currently pessimistic and predict that the cryptocurrency market will fall on that day, yet surprisingly, what is happening right now is still happening.
Nevertheless, as most seasoned traders are aware, what is most anticipated frequently does not, and the recent September 15 may end up being a non-event after all. But even so, it could be a good idea for traders to record this day on their calendars.
The futures basis and trading volume on ETH have increased as traders position themselves for the impending “apocalypse” in ETH and likely Bitcoin as it goes through the Merge. This may be because traders are holding long positions in the spot market to qualify for the forked tokens while also taking short positions in the futures market to protect themselves against a price decline.
For the first time ever, the volume of ETH futures trading has overtaken that of BTC due to the extreme rush into this trade. Don’t be shocked if something extraordinary occurs in the future—possibly by this mother’s end—that leads to a squeeze, given how crowded this trade is.
Long-term holder loss is approaching levels last seen during the greatest fall in the 2018 bear market, according to the BTC net unrealized profit-loss indicator. This would indicate that BTC is about to reach its cyclical bottom, which might be just a few weeks or inches away. Even while it’s likely that BTC holders won’t experience losses as severe as those experienced during the 2018 cycle, the present net unrealized loss has to keep declining for a few more weeks before we can claim with greater certainty that the current downtrend may be coming to an end.
While the cryptocurrency market is range-bound and looking for direction, traders who are unsure of what to trade may want to think about trading in the traditional asset classes since both the equities and currency markets recently had some strong swings. You can trade these asset classes in the same way that you trade cryptocurrencies on many different trading platforms.
Thank you for your time as we hope for the best.
@Celynjasmine
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