Bitcoin [BTC] has been facing a stagnant market after a brief price pullback, following BTC breaching $8,000. The 24-hour trading volume of BTC was $22 billion, as the coin traded around the $7,900-range. Litecoin [LTC] followed suit as the 24-hour volume was $3.4 billion, while the coin traded at $92.20. LTC held a market cap of $5.62 billion, at press time.
1-Day BTC chart
The one-day chart for BTC showed four uptrends: $3181.64 to $3,354.97, $3,352.79 to $3,693.03, $3,695.46 to $3,894.71 and $4,099.98 to $5,110.15. The downtrend was from $8,415.20 to $5,791.55, at press time. The support stood at $4,253.08.
The Parabolic SAR had the dotted markers above the candlesticks, depicting a bearish market
The MACD line underwent a bullish crossover
The Relative Strength Index was seen above the 50-point mark and indicated high buying pressure in the market
1-Day LTC chartThe uptrends were between: $22.13 and $30.58, $32.45 and $45.28, $45.10 and $60.34, and between $60.34 and $66.22. The downtrend was from $89.90 to $61.74. The support was at $67.68.
The Bollinger Bands showed expanding volatility in the LTC market
The Chaikin Money Flow showed a relatively equal money inflow and outflow
The Awesome Oscillator depicted a bullish buying opportunity in the market, at press time. However, a few red bars in the histogram suggested some bearish activity
Both Bitcoin and Litecoin remained largely bullish. However, some bearish trading cycles were expected to be seen
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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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