After a slight recovery, all cryptocurrencies in the market seemed to have taken a break, as the price charts did not record any prominent price shifts over the past few hours, at press time. Ethereum [ETH], the second largest cryptocurrency by market cap, was also pictured undergoing bearish market movement.
On the one-hour chart, the cryptocurrency showed a downtrend from $138.94 to $137.24. However, the coin recorded two uptrends; from $133.51 to $138.35 and from $124.88 to $135.23.
The cryptocurrency faced immediate resistance at $137.26 and a strong resistance at $138.95. The coin’s immediate support was marked at $134.89 and stronger support was found at $123.99.
Parabolic SAR showed that the coin was being pushed back towards the bear’s side as the dots were aligned on top of the candlesticks.
Klinger Oscillator was clearly standing next to the bear as the reading line closed below the signal line.
RSI showed that the buying and the selling pressures were at an equilibrium.
On the one-day chart, the coin showed a notable downtrend from $218.66 to $137. The uptrends for the cryptocurrency were pictured to extend from $83.74 to $103.22 and from $103.22 to $125.24.
MACD painted a red future for the cryptocurrency as the moving average line stayed below the signal line after a crossover.
Chaikin Money Flow tried to support the coin by the circulation of money into the market.
Bollinger Bands showed that despite some volatility for the cryptocurrency, the coin was moving towards a stabilized market.
The MACD from the one-day chart and the Parabolic SAR and Klinger Oscillator from the one-hour chart projected a bearish wave in the ETH coin market.
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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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