The Bitcoin Market Is Now A Battleground Between Bulls and Bears; Here's What's Coming
Looking at data from CoinMarketCap, most cryptocurrencies have recorded a slight improvement in prices over the last 7 days.
The slight recovery this week and a massive sell-off last week, have added to the recent confusion among many traders and investors wondering if we are foreseeing a bull or bear trend.
The Crypto Fear and Greed Index today hit 20, showing “extreme fear” in the market. Nevertheless, this hit is a slight improvement from last week’s monthly low hit of just 10. Despite this, traders appear to have ignored the warnings of a bear market based on data from various sources. The crypto market appears to be expecting a period of consolidation following last week’s sell-offs. This is expected to be the general trend for Bitcoin and most other cryptos will follow suit since their price trends are reflected by that of BTC.
Glassnode’s latest analysis shows that short-term holders currently hold about only 4.5% of BTC supply. The total value of BTC held by these types of holders has fallen dramatically since mid-April. Glassnode affirmed that these short-term holders have capitulated a large number of cryptocurrencies since then, but will continue to be a source of sell-side supply.
The report relates that long-term holders remain largely in profit and therefore may continue holding instead of selling off. This may push the crypto further to the green. According to the data, all long-term holder buyers who bought crypto before 2021 appear to be holding 69% of the BTC supply.
Additional data also notes that whales with 100-10,000 BTC in balance are continuing to accumulate BTC. These wallets have collected 30,000 BTC over the past week, a sign that whales are still optimistic about an imminent surge.
Blockchain insights platform Chainalysis also reported that investors bought Bitcoin worth $2.8 billion when the price slumped last week. Most of the selling was done by short-term holders.
“So last week was challenging for everyone in crypto and some investors incurred large losses. But the industry appears to be responding and most investors remain confident. For example, investor whales bought the dip, buying 77,000 Bitcoin last week.”
The same data is verified by Glassnode which revealed that more whales are indeed buying the dip. Glassnode said yesterday that short-term holders are currently distributing, long-term holders holding and accumulating, while miners were still preferring to not sell their coins.
Meanwhile, Joseph Maldonado from the documentary series “Tiger King: Murder, Mayhem, and Madness,” yesterday announced the launch of his crypto-asset called TKing on the Ethereum network. This caused a popular figure in the crypto space, Mati Greenspan, to wonder if people were still expecting the end of the bull market.
Further yesterday, the Reserve Bank of India (RBI) issued a circular nullifying rumor of a crypto ban in the country. It means crypto services in India are set to resume normalcy on crypto exchanges like WazirX, Unocoin, and Giottus.
RBI maintained that the 2018 circular, which required banks not to provide crypto services and products to customers, was null and void. This is because it was put aside in a legal ruling by the Supreme Court in March last year.
Nevertheless, increased supervision and threats on environmental issues are making Bitcoin struggle to sustain $40,000. Japan’s Financial Services Agency (FSA) recently issued a warning to Bybit Fintech Limited for allowing Japanese residents to trade on its exchange.
Iran has also banned energy-consuming mining of crypto for four months with President Hassan Rouhani saying mining was the main cause of blackouts that affected the country recently.
These may have a correction, but a slight one, on the crypto prices.
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