The cryptocurrency market, on May 20, cooled down following strong rallies spurred by the king coin and the collective market cap stood at $247.5 billion. While Bitcoin [BTC] was struggling to surpass the $8,000 mark again, Litecoin [LTC] was over the $90-mark, despite slipping to the sixth position.
1-day BTC chart
The largest cryptocurrency by market cap, Bitcoin [BTC] was priced at $7,978 and recorded a minor rise of 0.55% over the past 24 hours. The digital coin held a market cap of $141.3 billion and registered a 24-hour trading volume of $24.04 billion.
The one-day BTC chart registered two significant uptrends from $4,134 to $5,151, and another from $5,752 to $7,259, following the market pump. No significant downtrend was observed on the chart. Bitcoin found its support at $5,401.
Bollinger Bands: The diverging mouth of the bands indicated high volatility for the crypto-asset’s price.
Awesome Oscillator: The closing bars of the indicator were red, suggesting bearish momentum for Bitcoin.
Chaikin Money Flow: The CMF was above the zero-line, indicating that money was flowing into the coin market. Hence, a bullish price pattern for the Bitcoin was projected.
1-day LTC chart
The sixth largest crypto-asset on CoinMarketCap, Litecoin [LTC] held a market cap of $5.67 billion. LTC exhibited a decline of 1.37% over the past 24 hours and held a valuation of $91.75, at press time. Additionally, the coin recorded a trading volume of $3.98 billion over the past 24 hours.
The one-day chart of Litecoin [LTC] recorded an uptrend from $32.86 to $66.76 and a downtrend from $91.95 to $77.75. Even as the coin was outperformed by EOS, the coin remained above the $90-mark. The immediate support for the coin stood at $45.81.
Parabolic SAR: The dotted markers were below the candlesticks, suggesting a bullish trend for the coin.
MACD: The MACD line was above the signal line, indicating that the coin was following a bullish course.
Klinger Oscillator: The reading line was below the signal line, projecting a bearish price pattern for the coin.
While some bearish activity was pictured in the markets of both Bitcoin and Litecoin, bulls seemed to have regained the upper hand.
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Wall Street is on the losing side of Bitcoin’s impressive price rally
Wall Street, complete in their tailored suits, suede shoes, and leather briefcases, have once again placed their bets against Bitcoin.
Despite the fact that the collective cryptocurrency market broke the $350 billion mark, with Bitcoin alone accounting for 62 percent of the same and trading at $2,000 over its price at the beginning of the week, hedge funds were not impressed.
The Wall Street Journal citing data from the Commodity Futures Trading Commission reported that crypto-vested managers were holding 14 percent short positions more than long ones on the now, primary avenue for BTC Futures contracts, the Chicago Mercantile Exchange [CME].
A key point to remember here is that CME contracts are cash-settled and hence, no Bitcoins are actually being transferred, with the traders simply placing bets on the cash-equivalent price of Bitcoin.
Well-suited hedge fund owners however weren’t alone, with other stakeholders excluding the small scale crypto-investors holding a 3x on short positions, indicating a further pessimistic sentiment.
Smaller investors were however, long on the BTC market, with the CFTC report stating that investors holding 25 BTC or less were holding four times the long positions as their more exuberant counterparts. It should be noted that the CFTC report was prepared as the price of Bitcoin was still in the $9,000 range, prior to the five-figure surge.
BitMEX, a popular cryptocurrency exchange offering derivatives trading services, saw over $64.38 million in shorts liquidated when Bitcoin broke $10,000. The same was replicated when the price shot past $12,000.
Short positions indicate not just a sheepish position, but rather an investors’ contractual affirmation that the price of an asset will more likely fall than rise. Long positions on the other hand, indicate a pessimistic point of view. Hence, based on Wall Street’s trading activity, institutions are not buoyant about the cryptocurrency market.
In what could be a reverse-catalyst for the digital assets industry, Bitcoin decided to use this negativity as fuel to breach $11,000 earlier this week. Not done with the Wall Street bears just yet, BTC pumped yet again on June 26, with the price breaking the $12,000 ceiling with a further climb to $13,000 looking likely.
Who said Coin Street doesn’t go past the Wall Street express lane?
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