Most cryptocurrencies in the market followed the price hike of the largest cryptocurrency Bitcoin [BTC] on May 11 as the coin closed in on the $7k mark. Along with BTC, the prices of most altcoins too observed a rise, including Ethereum [ETH] and Tron [TRX].
At press time, ETH was valued at $179 with a market cap of $18.98 billion. The 24-hour trading volume of the coin was reported to be $8.50 billion as it spiked by 2.77% over the past day. In the past seven days, ETH reported a growth of 7.31% and continued to move up by 0.88% in an hour.
Bollinger Bands appeared to have diverged, indicating an increase in market volatility. The moving average line was under the candlesticks, thus, marking a bullish market.
Awesome Oscillator pointed towards a strengthening bearish momentum.
Chaikin Money Flow indicated a bearish trend as the marker line was under zero.
At press time, TRX was valued at $0.0236, with a market cap of $1.57 billion. The 24-hour trading volume of the coin was $732 million as it noted a growth of 2.20% over the past day and over 1% in an hour. In the past week, TRX noted a fall of 0.50%.
Parabolic SAR marked a bearish market as the markers aligned above the candlesticks.
MACD line was under the signal line, thus pointing towards a bearish market.
Relative Strength Index indicated that the buying and the selling pressures evened each other.
According to the long-term charts of ETH and TRX, a bearish trend was forecast for the coins.
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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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