Bitcoin (BTC) Could See ‘One Last Leg Up’ Before Things Get ‘Dicey’, Analyst Says

Major coins traded in negative territory Monday night as the global cryptocurrency market cap fell 0.6% to $1.08 trillion at the time of writing.

Price performance of major coins
Coin 24 hours 7 day Price
Bitcoin BTC/USD -0.7% 10.1% $23,212.12
Ethereum ETH/USD -3.1% 14.8% $1635.31
Dogecoin DOGE/USD -0.45% 10.8% $0.06833

Top 24-Hour Gainers (Data via CoinMarketCap)
cryptocurrency 24-hour % change (+/-) Price
Chili (CHZ) +18.6% $0.15
Theta Network (THETA) +11.5% $1.5
Gala (GALA) +8.1% $0.06

Also see: Best USDC Interest Rates

Why it matters: Bitcoin and Ethereum were in the red at press time.

The top coin continued to follow equities as S&P 500 and Nasdaq futures fell 0.2%, respectively.

The exuberance of the last week of July was missing at the beginning of August. That rally was due to uncertainty against the backdrop of “possibly negative data to be released or a major event,” GlobalBlock analyst said. Marcus Sotiriou in a note seen by Benzinga, adding that there is a lack of buyers leading to such events.

“In addition to market prices for bad news, I believe there is another reason why global markets rose last week,” said Sotiriou.

“The stock market has bottomed out in every recession when the Federal Reserve has turned U-turned — by U-turning I mean the transition from a policy of tightening monetary policy to an accommodative monetary policy (this could include pausing rate hikes or even restarting them). introducing interest rate cuts).

Sotiriou said, “many buyers have begun estimating the likelihood of a Federal Reserve reversal in the coming months.”

OANDA senior market analyst Edward Moya said Wall Street still has the mindset that recent stock gains were just a “bear market rally.”

Speaking about the price appreciation trajectory, Moya said: “The data-dependent Fed is still in a good position to push through another massive rate hike, but expectations are anchoring them for a much slower pace after the September FOMC decision.”

On-chain data remains “weak” and the late July rally “has not yet seen a convincing follow-up in observable demand activity,” Glassnode wrote in a weekly blog post.

The on-chain analytics firm said: “Bitcoin blocks are partially empty, Ethereum gas prices are at multi-year lows, and the rate of EIP1559 burn is at its all-time low.” The EIP1559 is a reference to a mechanism for burning Ethereum charges.

As an example of the lackluster on-chain activity, Glassnode shared Bitcoin’s “number of active addresses,” which the company said remained firmly in a well-defined downtrend channel.

“With the exception of a few activity spikes higher during major capitulation events, current network activity suggests there is still little influx of new demand.”

Bitcoin: number of active addresses, courtesy – Glassnode

Cryptocurrency Trader Justin Bennett tweeted that overall market cap could see “one last little leg up” before “things get tricky again”. The analyst says the $1.15 trillion level is the level to watch.

chartists Ali Martinez said Bitcoin has a steady support between $17,000 and $23,000, with 3.4 million addresses buying $2.14 million of the top coin. The key resistance level is between $31,000 and $41,000, where 5.37 million addresses previously bought 2.55 million BTC.

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