The week began with Ethereum [ETH], the second largest cryptocurrency by market cap, glowing both red and green. According to CoinMarketCap, at press time, the cryptocurrency was trading at $139.44, with a market cap of $14.68 billion. The coin recorded a trading volume of $4.09 billion over the past 24 hours, and a rise of around 2% in the past seven days.
In the one-hour chart, the cryptocurrency displayed a downtrend from $142.52 to $140.19. The uptrends for the coin were pictured from $137.51 to $142.52, and from $131.40 to $136.11.
The immediate resistance for the coin stood at $140.21, and strong resistance was at $142.56. The coin laid its immediate support at $135.11, and strong support at $129.27.
Bollinger Bands indicated a highly volatile market for the cryptocurrency as the bands diverged from each other.
RSI indicated that the buying pressure for the coin was proportionate to the selling pressure in the market.
MACD predicted a bearish market for the cryptocurrency, with the moving average line moving south after meeting the signal line.
In the one-day chart, the downtrend for the cryptocurrency was recorded from $218.66 to $157.55, and further down from $157.55 to $140.49. The uptrend for the coin was outlined from $83.74 to $103.22, and further up to $131.40.
The immediate resistance for the cryptocurrency was at $140.52, and strong resistance was at $157.75. The coin’s immediate support was at $125.18, while strong support was seen at $82.59.
Klinger Oscillator showed that the bull successfully pulled the coin from the bear’s grip, as the reading line moved above the signal line, after a crossover. However, the lines were on the verge of another crossover, which could result in a trend reversal.
Chaikin Money Flow line was above the zero mark, opening the doors for a bull run in the coin market as money was starting to flow back into the market.
Parabolic SAR’s dotted lines aligned below the candlesticks, indicating a bullish phase for the coin.
The market finally decided to give the bull another chance, with most indicators for the coin favoring it. The bear was only left with the MACD, 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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