The Bitcoin (BTC) crowd’s call for “moon,” “Lambo” during the price drop was “true irony,” the analytics firm says
Major coins were buoyant on Sunday night, as the global cryptocurrency market cap rose 0.9% to $1.1 trillion at press time.
| coin | 24 hours | 7 days | Price |
|---|---|---|---|
| Bitcoin BTC/USD | 1.4% | 0.01% | $23,315.92 |
| ether ETH/USD | 1.2% | 2.1% | $1,714.47 |
| Dogecoins DOGE/USD | 1% | 1.4% | $0.07 |
| cryptocurrency | 24-hour % change (+/-) | Price |
|---|---|---|
| Oasis network (ROSE) | +26% | $0.11 |
| loopring token (LRC) | +10.4% | $0.48 |
| cosmos (ATOM) | +6.8% | $11.34 |
See also: Best Crypto Debit Cards
Why it matters: Bitcoin and ether Trading in the green at press time, although the S&P500 and Nasdaq futures were down 0.2% and 0.3%, respectively, at press time.
On Friday, data from the US Department of Labor showed that nonfarm payrolls rose 528,000 in July, bucking expectations for a 250,000 rise, Reuters reported.
As a result, expectations arose that the U.S federal reserve will keep its hawkish course and 10-year Treasury bills shot up 11.2 basis points to 2.788%.
“Bitcoin could end its correlation with stocks. After a robust non-farm payrolls report, Wall Street sent Treasury yields higher, sending stocks down sharply, but not Bitcoin,” said Edward MoyaSenior Market Analyst at OANDA.
“If we were still in a crypto winter, Bitcoin’s typical response would have delivered a steeper decline than what has happened to U.S. stocks,” Moya wrote in a note seen by Benzinga.
Moya’s colleague at OANDA, Craig Erlamsaid Bitcoin continues to trade near $23,000 with a “break above $25,000 now being the next major test on the upside.”
Chartists Ali Martinez said he is watching for two critical support areas for the Apex coin: $22,560 and the other, the coin’s Relative Strength Index on the daily chart at 51. If both are lost, the analyst expects Bitcoin to drop to $21,400.
#Bitcoins | I look for two critical areas of support. One is at $22,560 and the other is the RSI on the #BTC daily chart at 51. If both are lost then expect $BTC to fall to $21,400. pic.twitter.com/CPD7ey9zAC
— Ali Martinez (@ali_charts) August 7, 2022
As we head into a new week of trading, “fear” continues to dominate investor sentiment, according to Alternative.me’s Crypto Fear & Greed Index. Last week the index was at 33, compared to 30 at press time. A score of 0 on the index represents “extreme fear,” while 100 reflects “extreme greed.”
Long-term holders of Bitcoin continue to issue coins at a net loss that averages between -11% and -61%, Glassnode said in a weekly blog post.
“The recent rally has given long-term holders an opportunity to sell a fraction of their holdings on a cost basis, at prices that are essentially ‘get their money back,'” Glassnode said.
Bitcoin, long-term holder net position change – Courtesy of Glassnode
The on-chain analytics firm said the aggregate behavior of long-term holders has changed over the past three weeks from accumulating at a rate of 79,000 BTC/month to paying out as much as -47,000 BTC/month.
In terms of behavior, words like “moon” and “Lambo” are used sarcastically by investors during a downturn, but they often mark moments when Bitcoin is poised to rise, the on-chain and financial analytics platform said Holy on twitter.
During the #crypto slide of 2022, the crowd sarcastically called out for #Moon and #Lambo as prices fall again. The real irony, however, is that spikes in these words actually often mark moments when $BTC is set to surge. https://t.co/uaAdc7uMAO pic.twitter.com/RGh3cAAl6a
— Santiment (@santimentfeed) August 5, 2022
Continue reading: Kevin O’Leary’s Crypto Market Outlook: “The Mega Opportunity for Bitcoin”
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