The cryptocurrency market witnessed the wrath of the bear as most of them plunged to their lowest point of the year. Along with crushing the whole market, the bear also stomped on investor sentiments, resulting in some existing the space.
The top 10 coins which are seeing a double-digit fall in the past 24-hours includes, Bitcoin [BTC], Ethereum [ETH], Bitcoin Cash [BCH], EOS, Litecoin [LTC], Cardano [ADA] and Monero [XMR].
According to CoinMarketCap, at press time, Monero [XMR], a popular privacy coin, is trading at $89.26 with a market cap of over $1 billion. The cryptocurrency has a trading volume of more than $36 million and has plummeted by 14.34% in the past 24 hours.
1-hourThe one-hour chart showed a downward trend from $114.33 to 106.77. This is followed by another downtrend from $103.71 to $90.69. The privacy coin has an immediate support at $95.13. It will then have to meet the strong resistance, which is patiently waiting at $107.86 level. There is a strong support for the coin at $89.21.
Parabolic SAR shows that the bear is going to further rip apart the cryptocurrency in the market as the dots have aligned above the candlesticks.
Bollinger Bands forecast that the market is going to be volatile as the bands were expanding, making space for price movements.
The Chaikin Money Flow indicates that the money has started to flow in the bearish atmosphere as it was leaping above the zero line.
Klinger Oscillator forecasts a bearish weather as the reading line is below the signal line and is showing a massive gap from each other.
MACD is also agreeing with KO’s forecast as the moving average is also indicating that the bear might hail over the market for a longer duration. This is because the moving average line is below the signal line, showing a similar pattern as the Klinger Oscillator.
RSI shows that a trend reversal could take place, giving the bull another chance in the game as the chart is indicating that the coin is currently being held by the bear .
The cryptocurrency is going to be suffocated by the bear’s grip. The winter animal is supported by the Parabolic SAR and CMF from the one-hour chart and Klinger Oscillator and MACD from the one-day 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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