Bitcoin Investors Gripped By Fear, Any Sign Of Hope Remain?

2022-5-24 21:09

Bitcoin is moving sideways after a major bear assault took it below its 2021 low. The first crypto by market cap seems to be displaying short-term low volatility and could see further downside, according to market participants’ expectations.

Related Reading | Coinbase Is on a Downwards Spiral and Could Be Taking your Crypto with It

At the time of writing, the first crypto by market cap trades at $30,400 with a 1.5% profit in the past 24-hours.

BTC moving sideways on the 4-hour chart. Source: BTCUSD Tradingview

The crash in the price of Bitcoin was triggered by a shift in the U.S. Federal Reserve (FED) policy. The financial institution has begun tightening its monetary policies after years of low-interest rates and high liquidity across the markets.

According to a recent report from on-chain research firm Glassnode, Bitcoin entered bear market territory in 2021. At that time, expectations of higher interest rates from the FED saw an uptick.

The firm believes that May and July 2021 selloff was the “genesis” of the current bear market. This coincides with a dropped in the Compound Annual Growth Rate (CAGR) for Bitcoin and Ethereum.

This metric is used to measure returns and has been on a decline every year since BTC became a tradable asset. The recent dropped in BTC’s returns, the research firm said, is worse than when the cryptocurrency crashed from the mid-area around $50,000 to $42,000.

As seen below, Glassnode claims this dropped in CAGR or returns coincides with the starts and ends of BTC bear markets. In terms of returns, May-July 2021 behaved similarly and even recorded a steeper decline than today’s negative 30% drop in this metric.

Source: Glassnode

If history is to repeat, Bitcoin should see some relief in the short term. This potential bounce might not mark the definitive bottom of the downside trend.

Players Bet On More Future Bitcoin Downside Price Action

Market participants are expecting this scenario. For the next two to three months, Glassnode noted, there is an increase in the number of put (sell) options for Bitcoin.

The strike prices for these options stand at $25,000, $20,000, and $15,000. Call (buy) options, the research firm claimed, are lower with most bullish traders aiming for a bounce to $40,000 over the same period. Glassnode said:

This suggests that at least out to the middle of the year, the market has a strong preference for hedging risk, and/or speculating on further downside price action.

Related Reading | Bitcoin Reclaims $30K Territory After Recent Weeks’ Struggle – Analysts Weigh In

Over the long term, the options market is bullish. By the end of 2022, players are setting their strike prices at around $70,000 to $100,000.

Source: Glassnode

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Market.space (MASP) на Currencies.ru

$ 0 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 MASP

market low bitcoin displaying seems crypto short-term

market low → Результатов: 126


Фото:

Bitcoin Price Analysis: High Shorts Count Could Signal Price Hike

Once again, bitcoin finds itself precariously perched on the bottom of its macro trading range (TR). After a strong round of selling over the course of two weeks plunged the price back to the $6,000s, bitcoin began consolidating for several weeks at the bottom of the TR:Figure 1: BTC-USD, 1-Day Candles, Macro TRAs shown in the figure above, the market has interacted several times at the current price range and it has been a source of three major bullish rallies.

2018-8-25 00:42


Фото:

Ethereum (ETH) Lowest Fees Claimed on Decentralized Platform, Also Vitalik Buterin on the State of Ethereum

The team behind Blockonix, a decentralized exchange, has set a very major target in front of them. Crypto-verse market domination with a very attractive argument: having the lowest fees. The company promises that the platform will have top quality in being user-friendly and very low fees if their native token is used.

2018-8-18 21:42


Фото:

Top 10 Cryptocurrencies See Green After a Tumultuous Week

Bitcoin (BTC)–After one of the hardest hitting weeks to the crypto markets in an otherwise bearish year, the top ten currencies by market capitalization appear to be in recovery. On Monday, the total market capilization of cryptocurrency dipped below $200 billion for the first time since last year, signaling a relative low from January 2018’s […] The post Top 10 Cryptocurrencies See Green After a Tumultuous Week appeared first on Ethereum World News.

2018-8-18 18:28


Blockonix Decentralized Ethereum Exchange Claims Lowest Fees Versus Competitors

Decentralized Ethereum Exchange Promises Lower Fees Than Rivals Blockonix has a strategy to dominate the market: really low transaction fees. According to the company, its exchange the most and user-friendly of them all and it offers really low fees for users who use the native token of the exchange. According to information from the company, […]

2018-8-18 00:27


Фото:

Did Tether Trigger a Short Squeeze or a Dead Cat Bounce? (Bitcoin Price Analysis)

This time yesterday it appeared that all was lost, as Bitcoin price slipped within $100 of the current 2018 low. Then something unexpected occurred. Perhaps shorts got squeezed out of their loftily precarious positions or was it Tether’s newly minted $130 million USDT that saved the day? Bitcoin Price Market Overview Bitcoin  spent the better part of the day fighting off bears and the cryptocurrency managed to post an impressive 10% gain as it briefly Read More The post Did Tether Trigger a Short Squeeze or a Dead Cat Bounce? (Bitcoin Price Analysis) appeared first on Bitcoinist.com.

2018-8-16 13:00


Фото:

Five Benefits to a Bear Market

We’ve been in a slump for a while now, and by the looks of it will remain in one for a good while longer. How long, how low, and how slow the recovery is anyone’s guess. If you’re reading these words, you’re still here, and thus it’s safe to assume you’re in this for the […] The post Five Benefits to a Bear Market appeared first on Bitcoin News.

2018-8-16 05:05