Tag: PRICE ACTION

Bitcoin Gains Momentum Based on Positive CPI Numbers

by Blockchain News

After slipping to lows of $15.5K amid FTX’s liquidity crunch, Bitcoin (BTC) gained momentum due to better-than-expected consumer price index (CPI) numbers released by the U.S. Bureau of Labor Statistics.

Crypto and market education platform IncomeSharks tweeted:

“Bitcoin has an easy path back to $20k as Stocks pushing up and positive CPI numbers.”

Bitcoin was up by 3.78% in the last 24 hours to hit $17,281 during intraday trading, according to CoinMarketCap. 

The CPI surge was lower than expected because it rose by 0.4% in October, the lowest since January 2022. The U.S. Bureau of Labor Statistics pointed out:

“The all items index increased 7.7 percent for the 12 months ending October, this was the smallest 12-month increase since the period ending January 2022. The all items less food and energy index rose 6.3 percent over the last 12 months … all of these increases were smaller than for the period ending September.”

The lower CPI numbers triggered a bullish reaction in the BTC market because this might mean that the Federal Reserve (Fed) will ease interest rate hikes, which have been detrimental to the crypto ecosystem.

The Fed has been increasing interest rates to the tune of 75 basis points (bps), and this is one of the primary factors hindering a significant leg up for cryptocurrencies.

Despite the positive CPI numbers, the crypto market is still not out of the woods yet as bears continue to bite. Market insight provider Material Indicators explained:

“CPI was lower, Jobless Claims were higher. FireCharts shows the crypto market’s initial reaction to a beat on the forecasted economic numbers. Bear Market Rally is still alive BTC.”

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Source: MaterialIndicators

The collapse of FTX, one of the leading crypto exchanges, has also made the digital asset space shaky.

Reportedly, the liquidity issue facing FTX might have emanated from the exchange’s CEO, Sam Bankman-Fried, secretly transferring at least $4 billion to boost its trading arm Alameda Research, with part of the funds being customer deposits.

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Is Bitcoin Gearing Up to Exit the Current Bottom?

by Blockchain News

Since Bitcoin (BTC) has been trading above the psychological price of $20K, Glassnode has released its weekly on-chain report titled “Hammering Out The Bottom,” scrutinizing the stakes and the risks that may lay on the road ahead.

The market insight provider stated:

“Bitcoin has rallied back above the $20k level this week, pushing off a low of $19,215, and trading as high as $20,961. After consolidating in an increasingly tight range since early September, this is the first relief rally in many months.”

Source: Glassnode

Bitcoin was up by 6.6% in the last seven days to hit $20,626 during intraday trading, according to CoinMarketCap.

With the realized price being the average acquisition price per coin, Bitcoin is presently approaching the underside of the realized price set at $21,111. A break above it would signify notable strength. 

Source: Glassnode

Redistribution of wealth continues to happen

During the Bottom Discovery phase, diminishing investor profitability usually triggers the redistribution of coin wealth because weaker hands capitulate into severe financial pain. 

Using the UTXO Realized Price Distribution (URPD) indicator, Glassnode noted that more consolidation and duration may still be required in the current bear market because coins changing hands are lower than the 2018-2019 bottom discovery phase where 22.7% of total supply was redistributed.

The market insight provider pointed out:

“Performing the same analysis in 2022, we can see that around 14.0% of supply has been redistributed since the price fell below the Realized Price in July, with a total of 20.1% of supply now having been acquired in this price range.”

Even though Bitcoin is getting ready to exit the bottom, the bear-to-bull transition has not completely formed because of the lack of a convincing influx of new demand. 

Meanwhile, crypto trading firm Cumberland recently highlighted that Bitcoin volume remained absolutely massive given that BTC derivatives worth approximately $50 billion were being cleared on crypto exchanges daily, Blockchain.News reported. 

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Are Bitcoin Miners Earning Minimum Reward as Hash Price Plunged to Historic Lows?

by Blockchain News

The revenue of Bitcoin (BTC) miners continues to dwindle, given that hash price has nosedived to historic lows of $66,500 per Exahash, according to Glassnode.

The market insight provider explained:

“The Bitcoin Hash Price has reached an all-time-low of $66,500 per Exahash. This means that BTC miners are earning the smallest reward relative to hashpower applied in history, and likely puts the industry under extreme income stress.”

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Source: Glassnode

Therefore, this indicates that miners are earning the lowest revenue in Bitcoin’s 13-year journey.

Furthermore, this is happening as the mining difficulty in the Bitcoin network hits an all-time high (ATH). Glassnode added:

“BTC mining difficulty just reached an ATH of 158,208,051,864,292,013,637,632. Previous ATH of 152,947,196,320,564,012,646,400 was observed on 23 October 2022.”

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Source: Glassnode

Mining difficulty is a metric of how hard or easy it is to generate new Bitcoin and is often impacted by the number of machines plugged into the network.

High mining difficulty implicates enhanced network security because more computing power is required to mine a similar number of blocks as before. 

78% of BTC Supply has been immobile for More Than 6 Months

With the immobile Bitcoin supply reaching ATH, it seems some hodlers have remained steadfast in their objective.

Market analyst Will Clemente pointed out:

“A new all-time high 78% of Bitcoin supply has not moved in at least 6 months. Pretty remarkable in the face of the worst macroeconomic backdrop in recent history, geopolitical uncertainty, and WW3 fears. There is a group of seriously convicted hodlers out there.”

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Source: Glassnode

Hodling is one of the favoured strategies in the Bitcoin market because coins are stored for future purposes other than speculation.

For instance, hodled BTC recently hit a 5-year high, Blockchain.News reported. 

Meanwhile, Bitcoin price was hovering around $19,315 during intraday trading, according to CoinMarketCap. 

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Bitcoin’s Small to Mid-Sized Addresses Continue Going Through the Roof

by Blockchain News

As Bitcoin (BTC) continues hovering around the $19K zone, small to mid-sized addresses are scaling the heights, according to Santiment. 

The market insight provider explained:

“Bitcoin’s small to mid-sized addresses (holding 0.1 to 10 BTC) hold an AllTimeHigh 15.9% of the coin’s available supply.”

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Source:Santiment

Therefore, Bitcoin addresses have been witnessing heightened activity. Santiment added:

“The number of Bitcoin addresses holding 10,000 to 100,000 $BTC & addresses holding 10 to 100 BTC have reached their highest amount of respective addresses since Feb, 2021. As the number of addresses on a network rises, utility should follow suit.”

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Source: Santiment

The market insight provider expects Bitcoin’s use case to surge as the number of addresses increases. This is a bullish sign because demand might rise, pushing prices upwards.

Holding the ground at $19.3K level is crucial 

Since Bitcoin has lacked a significant leg up thanks to tightened macroeconomic conditions, Michael van de Poppe believes holding the $19,300 zone is fundamental because this can prompt a push to the $22,000 area. The crypto analyst pointed out:

“The area around $19.3K is key to hold and then we can expand to $22.2K.”

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Source:TradingView/MichaelvandePoppe

Similar sentiments were recently shared by analyst Ali Martinez who stipulated that the leading cryptocurrency should stay above $19,200 to reduce selling pressure, Blockchain.News reported. 

Bitcoin was hovering around $19,260 during intraday trading, according to CoinMarketCap.

On the other hand, a market analyst under the pseudonym Tajo Crypto believes Bitcoin is not out of the consolidation woods yet based on unfavourable conditions like inflation and interest rate hikes. Tajo Crypto noted:

“Bitcoin has been between $18K and $25K since July and there seems not to be enough catalyst to make it drop to $17K or pump to $26K. The inflation and rate hike will make Bitcoin continue to struggle till prices normalize. Bitcoin consolidation is far from over.”

Therefore, it remains to be seen how the market plays out in the short term because the UNCTAD recently warned that if tightened fiscal and monetary policies continue, a global recession would be inevitable. 

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Bitcoin’s Volume Dominates Performance More than Volatility, Cumberland Suggests

by Blockchain News

Even though some analysts have stipulated that Bitcoin’s volatility is a cause for concern, crypto trading firm Cumberland believes volume is what matters the most.

Cumberland stipulated that Bitcoin volume “remain absolutely massive,” given that BTC derivatives worth approximately $50 billion are cleared on crypto exchanges daily. As a result, the firm believes that the daily crypto activity might be at least $100 billion, nearly a fifth of U.S. stocks.

BC-Bitcoin-Volume-Matters-More-Than-Volatility-Cumberland-Says

Source: Glassnode

As Bitcoin continues ranging between the $19K and $20K zone, volatility has slipped to the lowest level this year.

Nevertheless, Cumberland suggested that the slashed volatility does not show a lack of interest in the crypto space because an analysis of such magnitude “is deeply problematic,” given that it “obfuscates the critical difference between trading volumes and price volatility.” 

The firm added:

“Recent volatility-driven concerns about the health of the crypto space likely stem from comparisons to the bear market of 2018, when volumes were dire. This time is different.”

BTC volatility?

With Bitcoin volatility levels grinding to yearly lows, a surge might be on the horizon, according to Glassnode.

The market insight provider explained:

“The Bitcoin market is primed for a burst of volatility, with both realized and options implied volatility falling to historical lows. Futures open interest has hit all-time-highs, despite liquidations being at all-time-lows.”

There are also indicators that BTC volatility might explode, given that daily Bollinger Bands (BB) continue to tighten.

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Source: MatthewHyland

Meanwhile, Caue Oliveira, the lead on-chain analyst at BlockTrends, recently noted that BTC might be gearing towards a significant movement because traders are eager for some change, Blockchain.News reported. 

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Bitcoin Needs to Continue Standing above $19,200 to Dilute Downward Pressure, Analyst Says

by Blockchain News

Bitcoin (BTC) has gained momentum to surge past $19K after dropping to lows of $18.3K after the U.S. inflation data was released on October 13.

Market analyst Ali Martinez believes the leading cryptocurrency should stay above $19,200 to reduce selling pressure because this is a significant level. He pointed out:

“Roughly 2.5 million addresses bought nearly 1.5 million BTC at $19,200. The longer Bitcoin continues trading below $19,000, the higher the pressure these investors will feel to exit their long BTC positions to cut losses short. Consequently accelerating the downward pressure.”

The United States Bureau of Labor Statistics (BLS) published the latest inflation figures with the Consumer Price Index (CPI) for all urban consumers growing by 0.4% in September, Blockchain.News reported.  

As a result, a broad market reaction emerged, sending shivers down the crypto market, with Bitcoin dropping to lows of $18,319. 

Crypto insight provider Santiment stated:

“Thursday has been an expectedly volatile day after inflation data was released. Bitcoin dropped to $18.3k, its lowest price level since September 21st. However, as traders were in the midst of stopping the bleeding, BTC & the SP500 rapidly recovered.”

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Source: Santiment

Even though Bitcoin’s social dominance has dropped based on the back-and-forth experienced in the market, the leading cryptocurrency was up by 3.38% in the last 24 hours to hit $19,623 during intraday trading, according to CoinMarketCap.

Since some traders have been eyeing short-term pumps, this has also caused BTC’s social dominance to decrease. Santiment explained:

“Traders are chasing short-term pumps right now to salvage losses. Weak hands dropped out of crypto in 2022, & long-term traders are waiting for Bitcoin to begin receiving the spotlight again. When BTC social dominance is high, prices typically rise.”

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Source: Santiment

The U.S. Federal System has resorted to interest rate hikes to tame runaway inflation, which has been detrimental to the crypto market. With the latest CPI data being higher than expected, it remains to be seen what move the Fed will take next month. 

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Institutional Investors are not Yet Buying Bitcoin as Price Slips Below $20K

by Blockchain News

After enjoying notable momentum above $20,000, Bitcoin (BTC) slipped below this psychological price amid low appetite from institutional investors. 

Market insight provider CryptoQuant pointed out:

“Institutional investors not yet buying BTC. If prices rose without buying by Institutional investors before the FOMC rate announcement in November, it is likely to lose its upward momentum and dump it.”

Bitcoin was hovering around $19,494 during intraday trading, according to CoinMarketCap.

 

This price drop emerged as the United States recorded the slowest month of hiring in 18 months, indicating the hot job market was cooling slightly as the Federal Reserve tried to fight runaway inflation with inflation hikes. 

 

Marcus Sotiriou, a GlobalBlock analyst, stated::

“The jobs report was bearish for crypto and stocks, as the data came in hotter than expected.”

Sotiriou added that the consumer price index (CPI) data expected next week would shed light on the move that the Federal Reserve (Fed) would take with regard to interest rate.

 

The Fed has been at the forefront of interest rate hikes, which have been detrimental to the crypto market as bears continue to bite. 

 

Since June this year, the Fed has adopted the strategy of increasing interest rates by 75 basis points (bps), a scenario last seen in 1994.

 

Nevertheless, the United Nations Conference on Trade and Development (UNCTAD) recently warned the Federal Reserve not to throw caution to the wind based on its continuous monetary policy tightening because this could trigger a global recession, Blockchain.News reported. 

 

Bitcoin has lacked the significant bullish momentum needed to drive it past the lower $20K zone and the tightened macroeconomic factors have been speculated as the root cause. 

 

Katie Stockton, the founder of Fairlead Strategies LLC., noted:

“I think we need to respect the downtrend and assume that the bear-market cycle is still dominant.”

Meanwhile, Bitcoin hodlers have not shown signs of relenting in their quest to have more coins because more than 42 million addresses hold BTC despite the bear market. This is 4.5 million more than in 2021; data analytic firm IntoTheBlock pointed out. 

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Bitcoin Crosses $20K Mark, as Whales Continue to Accumulate Tokens

by Blockchain News

After slipping to lows of $18,000, Bitcoin (BTC) has gained some momentum and crossed the psychological price of $20,000.

The leading cryptocurrency was up by 7.77% in the last seven days to hit $20,154 during intraday trading, according to CoinMarketCap.

The upward momentum is experienced amid Bitcoin whales on a spending spree based on heightened accumulation. Market insight provider Santiment explained:

“Bitcoin whales are showing signs of sustained accumulation, which has been a rarity in 2022. Since September 27th, addresses holding 100 to 10k BTC have collectively added back 46,173 BTC back to their wallets as large USDT holdings have dropped.”

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Source: Santiment

Therefore, whales on the Bitcoin network are showing a sustained hodling trend, which can also be depicted by the fact that more coins have been leaving crypto exchanges.

Santiment added:

“Bitcoin continues to see its supply moving away from exchanges as traders show further signs of being content with their current holdings. With less than 9% of BTC on exchanges for the first time since 2018, it is a good bode of confidence for bulls.”

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Source: Santiment

Bitcoin exiting exchanges usually reflect a hodling culture because coins are transferred to digital wallets or cold storage for the future other than speculation. Therefore, it’s a bullish signal because it slashes selling pressure.

Bitcoin hodlers have not shown signs of relenting in their quest to have more coins because more than 42 million addresses hold BTC despite the bear market. This is 4.5 million more than 2021; data analytic firm IntoTheBlock pointed out. 

The bullish momentum being experienced in the BTC market is coming at a time when the UNCTAD has cautioned the federal reserve not to throw caution to the wind when tightening fiscal and monetary policies because this could prompt a global recession. 

The Fed has been at the forefront of increasing interest rates, which have been detrimental to the crypto market as bears continue to bite. 

Therefore, if the Fed heeds to this call, a bullish trend might be triggered in the crypto market because interest rate hikes have been the primary stumbling blocks. 

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Crypto Gets Resilience in the Past Month as Forced Selling Exit

by Blockchain News

The exodus of forced selling made cryptocurrencies partly resilient in the last month, according to Galaxy Digital Holdings founder Mike Novogratz.

Speaking at a conference in Singapore, Novogratz pointed out:

“We’re in this weird equilibrium where there are a few buyers, there are a few sellers, and there’s not that energy in the market like you’re seeing in the equity market or the bond market where you have to sell, right?”

Significant leverage has engulfed the crypto market, triggering a bearish run.

Nevertheless, Novogratz acknowledged that cryptocurrencies would take off again once the Federal Reserve (Fed) eased the aggressive monetary tightening, but this would not happen in a sustainable way until Web3 projects experienced mass adoption.

He added:

“Many crypto hedge funds won’t survive 2022’s rout in virtual coins. The implosion of Do Kwon’s Terraform Labs project was ‘heartbreaking’ and a lesson for the crypto industry.”

South Korean authorities have asked Interpol to issue a red notice for his arrest after Kwon denied being in hiding from law enforcement.

The crash of TerraUSD (UST) and Luna, which triggered the loss of $60 million of investor funds following the bearish outlook in the market, has made cryptocurrency platforms witness the least amount of engagement in two years based on the departure of weak hands. Market insight provider Santiment explained:

“If it feels like there are less people commenting and showing interest in crypto these days, your intuition is correct. Commentary hasn’t been this scarce since the end of 2020. Twitter has especially taken a hard fall in the past month.”

Meanwhile, Santiment acknowledged that profit-taking tendencies surfaced after Bitcoin closed the $20,000 mark and said:

“Many traders were apparently awaiting the $20k threshold to begin selling their bags. As Bitcoin crossed back above this psychological level, mass profit taking ensued.”

Therefore, time will tell how cryptocurrencies continue shaping up amid a tightened macroeconomic environment. 

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Over 42 Million Address Hold Bitcoin amid the Bear Market, 4.5 Million More than 2021

by Blockchain News

Bitcoin (BTC) has lacked a significant leg up as bears continue to bite. Nevertheless, Bitcoin hodlers are not relenting in their quest to have more coins.

Data analytic firm IntoTheBlock explained:

“The number of Bitcoin hodllers has been growing in the bear market. Over 42M addresses are currently holding BTC, 4.5M more than a year ago.”

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Source: IntoTheBlock

Since coins are stored for the future other than speculation, hodling has emerged as one of the sought-after strategies in the Bitcoin market. Furthermore, it triggers a bullish picture because it reduces selling pressure. 

Market insight provider Glassnode pointed out:

“Bitcoin has once again rejected below the psychological $20k region, plunging Short-Term Hodlers into severe, unrealized loss. However, Bitcoin hodlers remain steadfast, with old coin spending approaching a full cycle detox.”

Glassnode recently noted that even though Bitcoin has lacked a significant upward momentum, this has not dampened the spirits of hodlers because coins aged at least 3 months hit an ATH of 86.3%, Blockchain.News reported. 

On the other hand, Bitcoin addresses with at least 0.01 coins have been surging. Glassnode stated:

“Number of BTC addresses holding 0.01+ coins just reached an ATH of 10,746,906 Previous ATH of 10,746,518 was observed on 25 September 2022.”

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Source: Glassnode

Moreover, addresses with more than 10,000 BTC reached a monthly high of 101.

Even though a bullish picture has not been painted in the Bitcoin market, it remains to be seen how things shape up for the leading crypto in the short term.

“No bullish price structure for Bitcoin,” senior market analyst at Cubic Analytics Caleb Franzen pointed out.

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Source: TradingView/CalebFranzen

Bitcoin was down by 7.23% to hit $18,723 during intraday trading, according to CoinMarketCap.

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Bitcoin (BTC) $ 39,730.64 2.37%
Ethereum (ETH) $ 2,160.14 2.73%
Litecoin (LTC) $ 71.80 0.11%
Bitcoin Cash (BCH) $ 227.60 0.74%