In the crypto space, somehow, it seems we’re also trending lower. Many people expected (or hoped) for a reversal after the sharp retracement seen in the past two—now three—weeks. That just hasn’t happened (yet?).
Last week, BTC attempted to break free from the 40K resistance but, on Friday, changed course and retested the mid 30K’s. Over Saturday and Sunday, we went even lower, as far as $33,000. We’re now hovering around $35,500.
It’s interesting to see the mining difficulty has effectively dropped by 16%, following the hashrate drop linked to China’s crackdown.
During the move down, as expected, alts underperformed and the BTC Dominance index rose back from 42 to 43.
ETH lost more than 15% from Friday’s open to this Sunday session’s close. LINK lost about 20% in the same period. ADA surprised some by losing even more on Friday and Saturday, only to bounce sharply on Sunday. Interestingly, COMP and GRT followed a similar dynamic.
While there are some new stories that are worth mentioning, I want to quickly touch on the data provided by Glassnode.
On the bearish side, a measure of unrealized profit by long-term holders (as opposed to the space as a whole) is hitting levels which previously have been associated with a long-term downturn. Personally, I see that as a potential fake signal, simply because I think the space hasn’t reached overheated levels as it has during previous bull runs.
Additionally, two charts strengthen my view. One of them is the stablecoin supply ratio, which continues to trend lower (and that’s positive, as it means there are a lot more stablecoins relative to Bitcoin, which translates into a lot of dry-powder).
The second one is inflows and outflows of the Purpose BTC ETF, which suggests that people took advantage of the lower prices to get in, not get out.
Written by: Justin d'Anethan, Sales Manager
Welcome to the Weekender: Your weekly round up of the most viewed stories of the week, as voted by you, our readers. This week has seen the negative news flow replaced with tales of adoption, it appears the central bankers, country leaders, and the financial institutions have all agreed: Digital finance is here to stay.
Bitcoin has remained subdued today, with a tight $1,500 dollar trading range. Weekend trading sessions have been volatile as of late, which heighten awareness and interpretations of price action. We could well see fake out moves to both the upside and the downside this weekend, as the market looks for a move that doesn't transpire.
While global investors seem to believe we’re in a recovering economy, the inflation data that came through earlier today in the US, left most selling risk assets for now. Stocks retreated and bonds were bought, pushing the 10-year yield below 1.5%. Gold also edged lower.