- Bitcoin experienced an 11% dip over the last month.
- Bitcoin’s downward spiral traced to escalating selling pressure.
The crypto market is currently locked in a fierce struggle against dominant bears, showing a glimmer of hope as the market capitalization rises by 1.82%, reaching $1.07 T. Bitcoin and Ethereum, the major coins, have made strides, surging by 1.70% and 2.59% respectively in the last 24 hours. However, these gains have not yet managed to shatter the looming bearish sentiment. Particularly concerning is the trajectory of Bitcoin, which has been on a steady decline since the second week of August. It is experiencing a 7.68% drop in the past week alone.
Even while the eldest coin reached a peak of $31,000 at the beginning of Q3, it has since faced a significant downturn. The decline of 11.35% over the past month has sparked worry among investors. Nearly after 11 weeks, Bitcoin experienced a low price range of $25,000 to $26,500, with attempts to break free from this threshold.
Adding to the uncertainty, the community eagerly anticipates remarks from Fed Chair Jerome Powell on August 25th regarding the global economic outlook and potential interest rate adjustments. Concerns about persistent inflation, as highlighted in the July Fed meeting, have sparked speculation about a September rate hike. Powell’s data-driven approach underscores Bitcoin’s cautious stance, as investors seek clarity on the Fed’s monetary policy direction.
What are Bitcoin Investors Up to?
Nearly all short-term Bitcoin holders face a challenging scenario. Following a recent sell-off, a significant 88.3% of Bitcoin controlled by holders who retain coins for less than 155 days now grapple with unrealized losses, per Glassnode.In simpler terms, approximately 2.26 million out of 2.56 million Bitcoin (equivalent to $66.5 billion) held by these short-term holders were acquired at costs exceeding the current market value. This week’s loss dominance reading is the highest since the March sell-off to $19,800, indicates heightened price sensitivity and substantial underwater holdings, echoing prior “top-heavy markets.”
Will the Bulls Manage to Regain Control?
An analysis of Ethereum’s recent price movements paints a picture of a battle between the bulls and bears. The short-term 9-day exponential moving average (EMA) sits at $26,780, a symbol of prevailing bearish dominance. The Relative Strength Index (RSI) stands at 28, pointing to oversold conditions.
Currently, Bitcoin is priced at $26,481, marking a modest rise accompanied by a slight 8.20% uptick in trading volume. The bulls’ journey back to strength necessitates overcoming hurdles at $26,833 and the 20-day exponential moving average (EMA) at $27,777. Clearing these resistances would indicate the potential for Bitcoin to remain within the $24,800 to $31,000 range.
Meanwhile on the other hand, the bears’ hold could strengthen if they manage to sustain the price below $24,800, potentially dropping to $20,000. In this intense battle between market forces, the outcome remains uncertain.
Will BTC Break its Bearish Momentum? Share your thoughts by tweeting us at @The_NewsCrypto
