As a seasoned trader with years of experience under my belt, I can say that the crypto market is as unpredictable as ever. Looking at Dogecoin (DOGE), it seems like the meme coin is struggling to find its footing, with buyers and sellers engaged in a constant tug-of-war. The 6.38% drop on Tuesday, despite reaching a day high of $0.119, indicates that sellers still hold significant influence over the market. However, today’s almost 3% increase gives hope for a potential recovery.
Over the last day, the crypto market has experienced a great deal of instability, causing more than 100,000 traders to face liquidations and increasing worries as the market takes a downturn. For instance, Bitcoin (BTC) temporarily fell below $60,000 on October 3 but quickly rebounded, now trading slightly above $61,000. The top cryptocurrency is currently hovering in this region.
Virtually all prominent cryptocurrencies are showing losses today, with Ethereum (ETH), Solana (SOL), Ripple (XRP), Dogecoin (DOGE) among them and a few others. This has caused the total crypto market value to drop even more, now standing at approximately $2.12 trillion. Furthermore, there have been continuous withdrawals from Bitcoin ETFs that trade on the spot market.
Crypto Market Liquidations Surge
Currently, Bitcoin (BTC) is hovering slightly above $61,000 after experiencing a significant drop from its weekend high of around $65,000. This steep fall in the price of BTC and the broader crypto market has triggered a series of liquidations, with approximately $295 million worth of positions being terminated over the last 24 hours. Out of this total, about $246 million were from long positions, suggesting that traders anticipated prices to rise; however, their prediction did not come to fruition. Bitcoin itself witnessed nearly $45 million in long positions getting liquidated, affecting more than 10,000 traders who found themselves in this situation.
Due to the markets experiencing a downturn, many traders shifted towards more secure digital currencies known as stablecoins to safeguard their investments. Notably, significant stablecoins witnessed an increase in activity with over 73% of the $121 billion global trading volume being held by them. This trend suggests that investors are choosing stablecoins due to their reduced volatility compared to other cryptocurrencies.
Geopolitical Factors
As an analyst, I’m observing that the intensifying Middle East conflict is contributing to the turbulence in global markets, including the crypto sector. This unpredictability has sparked heightened trading activity and price instability. The current geopolitical climate has also highlighted Bitcoin’s status as a form of “digital gold,” making it potentially beneficial during periods of market upheaval due to uncertain political situations. Some investors are gravitating towards BTC, while others are cautious, viewing it as a speculative and high-risk asset.
What implications might the widespread sell-offs in the crypto markets hold? These sell-offs are perceived as a reflection of larger market issues and volatile conditions triggered by global economic events. Leveraged traders have been hit hard due to these swift price changes, resulting in forced sales and losses. Although cryptocurrencies have demonstrated resilience in the past, the current instability could persist as external factors continue to dampen investor confidence.
Binance Market Share Regresses Considerably
In recent times, Binance, the global leader in cryptocurrency exchanges, has observed a decrease in its market share, returning to levels seen in the year 2020. This reduction is due to intensified competition that allowed other platforms to capture a substantial number of users and trading activity. According to findings from CCData, the volume of spot and derivatives trading on Binance declined by 23% and 21%, respectively. Centralized exchange trading overall saw a decrease, with September, historically a tough month for asset trading, reporting a drop of 17%. Currently, Binance holds a 27% share in the spot market and a 40% share in the derivatives market.
Spot Bitcoin ETFs Continue To See Outflows
On Thursdays, Bitcoin ETFs experienced withdrawals totaling $54 million, making the three-day cumulative outflows reach $388 million. This suggests a bearish sentiment in the markets. In contrast, ARKB saw substantial outflows, while IBIT from BlackRock and BITB from Bitwise recorded inflows. The daily trading volume of these Bitcoin ETFs decreased from $1.66 billion to $1.13 billion.
Last week, Ethereum ETFs experienced a combined withdrawal of approximately $3.2 million. Among these, Grayscale’s ETHE saw the most significant outflow. However, BlackRock’s ETHA managed to offset some of these losses with an inflow of around $12 million.
Bitcoin (BTC) Price Analysis
As a researcher observing the Bitcoin market, I noticed a slight recovery on Friday after it dipped to $59,904 on Thursday. This upward movement occurred when buyers stepped in at the $60,000 mark. The past week has been challenging for investors due to significant liquidations, leaving many hoping that Bitcoin can end this bearish period positively.
As a researcher observing market trends, I witnessed a wave of panic sweep through the financial landscape on Tuesday, as Middle Eastern tensions intensified, hinting at the possibility of a full-blown regional conflict. Consequently, this escalation caused markets to tremble, and Bitcoin (BTC) plummeted nearly 4%, falling below its 20-day Simple Moving Average (SMA) and closing at $60,873. On Wednesday, buyers attempted a comeback as BTC surged to a daily high of $62,456. However, the 20-day SMA served as a dynamic resistance barrier, forcing the price back down. By the end of the day, BTC recorded a minor setback and finished at $60,671. Despite this, BTC has demonstrated resilience at the $60,000 support level, and with the 50-day SMA acting as another dynamic resistance line, it managed a marginal recovery to prevent any further decline. In the end, BTC registered an increase of 0.22% and settled at $60,804.
Right now, Bitcoin (BTC) is experiencing a rise of nearly 1%, bouncing back from its 50-day Simple Moving Average (SMA). Currently, it’s trading at around $61,414. As the price recovers from its support level, traders are aiming to push BTC beyond $62,500 and the 20-day SMA first. If they manage this feat, the significant resistance levels of $63,500 will come into play next. Overcoming these hurdles could potentially lead to a surge towards $65,000 and even $66,000. Conversely, if sellers regain control and push BTC below its 50-day SMA and the $60,000 mark, we might see a downward trend towards $57,500 or potentially as low as $55,000.
Ethereum (ETH) Price Analysis
Over the last week, Ethereum (ETH) has dropped by nearly 10%, with an additional 12% decrease over the past two days. This is largely due to unfavorable market conditions and Ethereum’s inability to surpass $2,700, which has caused its price to fall. ETH’s recent bearish trend has essentially erased all of the gains made since September 17, when it bounced back from a low of $2,254. Market observers are questioning whether Ethereum can surpass $2,700 and what factors might change its negative trajectory. Since September 1st, ETH has experienced a significant downturn, while the total crypto market cap has risen by 1.4%. The anticipated spot Ethereum ETFs have failed to impress investors, leading to net outflows of over $550 million. Some experts attribute ETH’s price drop to selling pressure from Ethereum co-founder Vitalik Buterin and the Ethereum Foundation, while others point to decreased interest in dApps as the cause.
Furthermore, proponents of Ethereum were convinced by the “ultrasound money” concept, expecting ETH to become scarce. Yet, this has not materialized, as the rate at which ETH is minted has increased instead, leading to a reverse deflationary effect. The modifications in Ethereum’s strategy have unfortunately led to a decrease in ETH’s value.
On Wednesday, buyers made an effort to recover but failed as sellers overpowered and decreased the price by 3.40%. Consequently, ETH dipped below $2,400 and ended at $2,365. The following day brought more volatility with buyers trying to push ETH back above $2,400, but they were unsuccessful again, leading to a drop of 0.64% to $2,350. Currently, the session shows ETH increasing by 1.50% as buyers aim to reclaim the $2,400 level. If buyers continue their momentum, they might push towards $2,500. In contrast, if sellers regain control, ETH could slide down to $2,300.
Solana (SOL) Price Analysis
On Thursday, Solana (SOL) dipped below $140 due to intense volatility, reaching a daily low of $133. As you can see in the price graph, Solana’s latest bullish trend peaked at around $161. Following this peak, the bullish momentum waned, causing SOL to slide into the negative territory on Monday, initiating the week with a nearly 4% decline and dropping below the 200-day Simple Moving Average (SMA), settling at $152. As cryptocurrency markets turned bearish due to the intensifying Middle East situation, Solana experienced a significant drop of almost 5% on Tuesday, losing the $150 mark and hovering just above the 20-day SMA at $145.
On Wednesday, SOL dipped below its 20-day moving average after an unsuccessful effort to surpass $150, with bullish momentum waning and control shifting back to sellers, causing a 3.44% decrease in SOL’s value. Consequently, SOL fell beneath both the 20 and 50-day moving averages and settled at $140. The following day brought heightened volatility as sellers aimed to drive SOL below $130, while buyers sought to propel it above $140. In the end, SOL declined by 2.40% to close at $136. As of the current session, buyers are making an effort to push SOL back above $140, a feat that could potentially allow SOL to surpass its 20 and 50-day moving averages, paving the way for a potential move towards $150. However, it is crucial for buyers to maintain SOL’s position above $130.
Ripple (XRP) Price Analysis
Ripple (XRP) is aiming to bounce back above $0.55 following a week marked by significant bearish trends that led to XRP losing a crucial support level and falling below its 20-day, 50-day, and 200-day Simple Moving Averages (SMAs). For most of the week, XRP has been in the red, with a 4.57% drop on Monday taking the price down from $0.66 to $0.61. The volatility increased on Tuesday due to unfavorable geopolitical conditions, causing XRP to decline by 2.42%, falling below $0.60 and ending at $0.59. Bearish feelings intensified substantially on Wednesday as XRP plummeted nearly 10%, slipping beneath the SMAs and the $0.58 support level, closing at $0.53.
On Thursday, buyers made an effort to rebound, yet they failed to surpass the 200-day Simple Moving Average (SMA), causing sellers to take charge. This led to XRP decreasing by 3.08% to reach $0.52. However, it dipped as low as $0.50 during the day. Presently, in this session, buyers aim to maintain the price above $0.50 while sellers seek to pull it down further.
Dogecoin (DOGE) Price Analysis
After experiencing a turbulent and downward trend during the previous week that took Dogecoin (DOGE) to an all-time low of $0.102, the cryptocurrency has displayed a rebound in its performance. As depicted in the price chart, DOGE demonstrated bullish behavior until the weekend, peaking at $0.132 on Saturday. However, investor sentiment shifted on Sunday as DOGE dropped by nearly 3%, reaching $0.124. Bearish sentiment grew stronger on Monday with a decline of 8.33% to $0.114 due to unfavorable market conditions. On Tuesday, buyers tried to regain control, pushing DOGE up to a daily high of $0.119; but as their momentum dwindled, sellers seized the opportunity and took charge once more, causing DOGE to plummet by 6.38%, falling below its 20-day Simple Moving Average (SMA) and settling at $0.107.
On Wednesday, DOGE made another attempt at recovery but failed to surpass its 20-day Simple Moving Average (SMA), with sellers overpowering buyers and driving DOGE down by 2.52% to $0.104. The following day, Thursday, saw significant fluctuations in DOGE’s price as both buyers and sellers battled for control of the market. Eventually, DOGE edged up slightly and maintained a position above $0.105. Currently, in this session, DOGE is experiencing a nearly 3% rise as buyers aim to regain momentum and push the price beyond $0.110.
Cosmos (ATOM) Price Analysis
During the current trading session, Cosmos (ATOM) has rebounded after a week marked by bearish trends that pushed its price below the $4.50 mark. ATOM turned bearish on Saturday, losing 2.22% to reach $5.02. Yet, it experienced a slight increase on Sunday, maintaining its position above $5, closing the weekend at $5.03. The markets turned bearish again on Monday, causing ATOM to drop by 6.01% to $4.73. On Tuesday, buyers tried to recover the price, which peaked at $4.91. However, sellers dominated the market, pushing ATOM further down by 6.14%, falling below its 20 and 50-day moving averages as well as the $4.50 support level to reach $4.44.
On Wednesday, I observed a notable fluctuation in ATOM‘s price action as buyers tried persistently to surpass the $4.50 mark. However, after reaching a peak of $4.57, ATOM reversed course due to selling pressure that dragged the price below $4.50 again. The cryptocurrency ended up decreasing by 0.15%, settling at $4.43. On Thursday, sellers aimed to drive ATOM below $4, pushing it down to a low of $4.23. Yet, the buying force managed to counterbalance the selling pressure, resulting in ATOM closing the day at $4.38 after a decline of 1.19%. In this current session, buyers are aiming to regain momentum and push ATOM back above the $2.50 mark, currently showing an increase of over 2%.
Celestia (TIA) Price Analysis
During the current trading period, Celestia (TIA) has shown signs of significant improvement and is aiming to conclude a week marked by bearish trends on an optimistic note. Prior to this week, TIA had been quite bullish but lost its momentum after reaching a peak of $6.90 on September 24, due to solid resistance at the $7 mark. The pessimistic outlook grew stronger over the weekend as TIA fell by 6.24%, reaching $5.99 and falling below a critical level. Sunday saw TIA undergo considerable price fluctuations as buyers tried to push it back above $6, but after experiencing volatility, it managed only a slight rise to $6.02. However, bearish sentiment prevailed on Monday as TIA plummeted by over 8% to $5.53.
In challenging market conditions on Tuesday, the value of TIA dropped significantly, decreasing by approximately 8% to fall below $5.50 and the 20-day Simple Moving Average (SMA) to $5.08. On Wednesday, potential buyers tried to reverse the trend as TIA reached a daily high of $5.52. However, with the 20-day SMA serving as a resistance level, the buyers’ momentum slowed, enabling sellers to regain control. Consequently, TIA dropped below the 50-day SMA and $5 after a decline of 5.12%, closing at $4.82 on Wednesday. This negative trend continued on Thursday with a further decrease of 1.47%, pushing TIA down to $4.75. Despite the pessimistic outlook, TIA has shown a robust recovery during the current trading session and has risen by more than 9%, currently valued at $5.18 and back above the 50-day SMA.
Read More
Sorry. No data so far.
2024-10-04 13:22