The market opened this morning with most cryptocurrencies in green, with Ethereum [ETH], the second largest cryptocurrency by market cap recording the highest rise. According to CoinMarketCap, at press time, Ethereum was trading at $138.03 with a market cap of $14.48 billion. The coin had a trading volume of $5.07 billion and recorded a surge of over 10% in the past 24 hours as well as a surge of 13% in the past seven days.
In the one-hour chart, the cryptocurrency recorded uptrends from $103.27 to $121.56 and $123.93 to $136.74. The immediate resistance for the coin is at $136.78 and there is also a strong resistance at $150.79. The cryptocurrency’s support levels can be found at $115.67 and $103.08.
The Klinger Oscillator shows a bearish crossover as the reading line has decided to place itself below the signal line.
Chaikin Money Flow on the other hand, indicates improved money circulation, forecasting a bullish market for the coin as the line is well above the zero mark.
Bollinger Bands are currently expanding, indicating a more volatile market for the coin.
The one-day chart demonstrates a downtrend from $317.55 to $132.34 whereas, the uptrend is outlined from $83.74 to $103.36 and from $103.22 to $121.55. The immediate resistance for the cryptocurrency is set at $156.11 and strong resistance can be found at $128.77. The first support for the coin is pictured at $103.13, while another strong support is at $82.84.
MACD shows that the moving average line took a turn pointing north after a crossover with the signal line, indicating a bullish market for the coin. Additionally, MACD’s histogram is also coloured in green.
Parabolic SAR is also on the same terms as the indicator’s markers are pictured below the candlesticks.
RSI is currently showing evened out buying and selling pressures for the coin in the market. However, the indicator is dangerously close to the overbought zone.
The market is showing a bullish reign for the coin as a majority of the indicators are seen supporting the coin’s bright future. This includes MACD and Parabolic SAR from the one-day chart and Chaikin Money Flow from the one-hour chart.
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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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