Crypto Headwinds May Start to Pile Up- Markets May Soon Face Another Sell-off Soon!
The crypto space is falling down! Yes, you heard it right! The Bitcoin price was once again subjected to massive liquidations, resulting in a more than 5% drop in its price along with the other altcoins in the market. With this, the entire market cap collapsed to close to $1.03 trillion. While market participants believe the prevailing bearish trend may ease soon, triggering a rebound, it appears that the bears are here to stay!
The BTC price is consolidating along the lower gained levels from the past few hours and hence squashing the possibility of an immediate recovery. Therefore, the prices of the major cryptos are believed to remain under bearish influence for some more time ahead, as multiple events are about to mark their strong presence within the crypto space.
A popular analyst lists the probable events that may occur in the coming months. Apart from Silvergate, MT. Gox unblock is underway, while the Shanghai upgrade is expected to shake the market as the locked ETH may be withdrawn. As per the analyst, the CPI may soar high by 50bps while the stock markets may witness weakness. The analyst also specified that a combination of the above-mentioned events may trigger mass liquidations again.
The market participants were in extreme fear until the market rose at the beginning of 2023. However, after experiencing a small sigh of relief, the bearish cartel is believed to dominate, which may create another price depression within the markets.
Therefore, will Bitcoin form the bottom before the end of Q1 as predicted by some analysts before, or head back towards $25,000? We need to wait and watch.
Whales Pile up Shiba INU, While Price Continues to Struggle below $0.00001
The Shiba INU price has been trading sideways for quite a long time, while the whales continue to gather more and more tokens over time. For nearly a week, the SHIB price has been trading within a very narrow range, recording minor bounces. Dogecoin, on the other hand, managed to surge by more than 20% over the past week, while SHIB failed to follow the primitive memecoins of the space.
Despite this fact, the whales continue to gather a huge number of assets as their interest in the token has surged massively. According to WhaleStats, SHIB is the first choice of the top 500 Ethereum whales that are currently accumulating massively.
Besides, minor bullish signals have been let out, which signals that the asset is due for a massive breakout any time from now. The MVRV ratio is the comparison between the market cap & the realized cap, and it also determines the upcoming trend of the asset. Presently, the Shiba INU’s MVRV ratio is constantly on the rise, flashing bullish signs for the crypto.
Meanwhile, the Bollinger Band indicates the Shiba INU price is currently trading within a squeeze zone, increasing the headwinds. On the other hand, RSI and CMF, both registered minor pullbacks and hover just lower than the average levels. Therefore, uncertainty prevailed over the SHIB price rally, factors like whale accumulation may certainly lead to a bullish breakout soon.
Bitcoin Long Trades Pile Up While Surging DXY Index Haunts the BTC Price Rally – Coinpedia – Fintech & Cryptocurreny News Media
The dominant crypto, Bitcoin has been trading within bearish captivity for nearly 15 to 20 days and hence was expected to break the trend very soon. In the past couple of days, the price has been trying to surge above the immediate resistance. However, the current trade set-up denotes that the bulls have stepped out as the bears mark their strong presence.
Investors Bullish on Bitcoin
While the upcoming trend of the BTC price has become pretty unpredictable, more traders are confident of the asset pulling a significant leg up. Hence the volume of long trades has recently outperformed the short trades on Binance futures.
The data above displays the volume of the long trades & short trades in the past week. Despite the shaky price trend, the investors placed their bets on Bitcoin long more than shorts. As of September 01, nearly 67.59% of trades on Futures are long while 32.41% are short. Therefore, the possibility of the BTC price surging above $21,000 emerges, which may be followed by a notable drop.
Strengthening of DXY Index – A Bearish Case for Bitcoin
Conversely, the DXY Index, which determines the strength of the US Dollar is coiling up. After a minor rejection from 20-year high levels at 109.99, the asset failed to continue to remain within bearish captivity. Hence the Index, since the early trading hours has been extremely bullish, flashing the signals of marking new highs very soon.
The DXY Index is expected to surge slowly yet steadily and may retest the upper resistance in the coming weekend. Further, it may again experience a rejection, which could be reversed in a very short time ahead. In such a case, the Bitcoin price may experience tougher times as the possibility of a significant dump may be imminent.
Considering both cases, it is quite prominent that the descending consolidation of the asset is expected to prevail for some more time. As September month is largely believed to be bearish, the Bitcoin(BTC) price may maintain a low-key trend for a long.