Cryptocurrency traders are preparing for increased volatility in the market after bitcoin's recent plunge, as indicated by on-chain data showing a surge in implied volatility and adjustments in traders' strategies.
Bitcoin and other cryptocurrencies are facing intense pressure as prices drop and short-term holders offload their assets, signaling a possible capitulation phase and suggesting further downside potential. Additionally, major altcoins like Ethereum, Solana, and Cardano have witnessed a decline in their Total Value Locked (TVL) over the past week, indicating a decrease in popularity and utilization in the decentralized finance (DeFi) ecosystem.
Bitcoin and Ether rose over 3% to reach their highest prices in a week, while Solana, NEAR, Cardano, Polkadot, and Binance's altcoins also experienced gains, following a surge in traditional markets; however, experts predict that the downtrend in digital assets may continue for the next few weeks.
The market is trading sideways with some coins experiencing slight rises while others continue to fall.
Key social metrics suggest that cryptocurrency markets may soon rebound, as the use of the term "bear market" has reached an 11-week high on social media platforms, which historically indicates that price rises are likely; additionally, deep-pocketed investors are accumulating Bitcoin again, contributing to a recent rally.
Former Goldman Sachs executive Raoul Pal believes that Bitcoin may be on the verge of a massive rally, based on the historical volatility of the cryptocurrency dropping below 20, a level that has preceded significant price increases in the past. Pal also notes that Bitcoin's Bollinger Bands, a volatility indicator, are the tightest they have ever been, further indicating the potential for a strong upward movement. Ethereum is also highlighted as trading within a bullish pattern despite recent market corrections.
The price of bitcoin fell nearly 1% in the past 24 hours to below $25,700, following a surge last week after Grayscale's court victory, while the announcement of extended oil production cuts by Saudi Arabia and Russia could be bearish for bitcoin prices. However, Solana's SOL token saw a 3.7% increase after Visa's announcement of expanding its stablecoin settlement capabilities with Circle's USDC stablecoin to the Solana blockchain.
Bitcoin experienced volatility and a "short squeeze," resulting in new highs for September, punishing late traders chasing the market up and down, with short liquidations totaling $23.5 million on September 7.
Bitcoin must surpass a key price level in order to signal the end of its price stagnation, according to analyst Credible Crypto, who believes that Bitcoin dominance is rising and altcoins will suffer as a result.
Bitcoin is trading within a narrow range and could form a third consecutive Doji candlestick pattern, indicating a firm bear grip on the overall cryptocurrency market. However, some asset management firms are showing seriousness about implementing digital strategies, which could potentially impact Bitcoin's buying interest in altcoins.
Bitcoin and other cryptocurrencies have experienced a fall in value, leaving traders anticipating significant movements in the market for the week ahead.
Crypto markets experienced a decline as FTX's potential selling pressure raised concerns, causing Bitcoin to fall below $25,000 for the first time since mid-June, and altcoins to underperform, particularly Solana (SOL).
The recent decline in the price of Bitcoin has raised concerns of a larger market downtrend, with Ethereum and Ripple also at risk of falling if Bitcoin weakens further.
Bitcoin (BTC) experienced a short squeeze, leading to a rally in prices and a decline in open interest in futures and perpetual swaps trading. However, the lack of immediate bullish catalysts may cap the price recovery.
Solana (SOL) has the potential for exponential gains in the long term, according to a crypto trader, although short-term volatility and a potential liquidation from FTX could cause temporary price drops.
Bitcoin's recent dip below $25,000 is seen by some as a buying opportunity, but the low amount of BTC changing hands and the risks associated with a potential price increase suggest otherwise.
Bitcoin's vulnerability to contracting global liquidity is highlighted by Bloomberg Intelligence's crypto market analyst Jamie Coutts, who suggests that the cryptocurrency will only turn bullish when global liquidity levels expand, warning that it is unlikely to rise until liquidity reverses and anticipating that institutional investors will only show significant demand for digital assets once liquidity rises.
August saw the crypto markets experience a downturn, with Bitcoin and Ether losing significant value due to liquidations on the derivatives market, while venture capital investment in the blockchain industry hit a new low and derivatives drove negative sentiment for Bitcoin.
Bitcoin's pre- and post-halving price action could differ from previous cycles due to a change in global monetary policy and tightening liquidity, potentially causing more pain for risk assets like Bitcoin and altcoins, according to crypto market analyst Jamie Coutts.
Bitcoin's rise may lead to leverage liquidations and price rallies for shorted alternative cryptocurrencies like Solana, while upbeat Chinese data signals continued gains for leading cryptocurrencies like Bitcoin Cash, Maker DAO's MKR, XRP, Ether, SOL, Tron's TRX, and Dogecoin. Binance.US faces accusations of non-cooperation in a probe by the Securities and Exchange Commission, and Deutsche Bank is partnering with Taurus for cryptocurrency custody and tokenization services.
Bitcoin and other cryptocurrencies have seen a rise in price as traders anticipate a potential macroeconomic catalyst that could lead to a significant movement in the market.
Bitcoin (BTC) briefly surpassed $27,000 before experiencing a 2% drop, resulting in liquidations of approximately $100 million in leveraged trading positions, with short traders suffering $60 million in losses and long traders experiencing $40 million in losses.
Bitcoin is expected to mimic its previous rally and potentially see significant gains in the near future, according to crypto strategist Credible Crypto, who points to a bullish engulfing candle pattern and the defense of a key support level as positive signs for BTC's upward momentum.
Bitcoin is expected to experience a strong upward pressure on its price due to the upcoming halving mechanism, making it an attractive time for investors to consider bitcoin mining stocks like Bitfarms and Cipher Mining.
Bitcoin and other cryptocurrencies are experiencing a decline in prices due to a strengthening dollar and risk-aversion, but there is hope for a rebound.
Bitcoin, Ethereum, and Solana could experience significant price declines, with Bitcoin potentially dropping by over 20% and Ethereum and Solana also facing dips, according to crypto strategist Kaleo.
Crypto analytics firm Santiment reports that the prices of eight altcoins are poised to rise, as the supplies of their native tokens on exchanges decrease and transactions by whales increase, while Bitcoin's social dominance has fallen to a three-month low.
Bitcoin is on the verge of reaching levels that offer accumulation opportunities and could potentially start an uptrend, according to crypto trader Michaël van de Poppe, who compares the current price action to that of a pre-halving year.
Bitcoin and other cryptocurrencies are rising as traders are optimistic about the potential of a US government shutdown, despite the risk of liquidity drainage.
Bitcoin and Ethereum saw gains in the crypto market driven by factors such as the announcement of an Ethereum futures ETF, a rise in the S&P 500 index, and short liquidations, with the rest of the market also experiencing bullish gains.
Bitcoin is expected to continue its upward trajectory, leaving behind traders who are waiting for a further correction, according to crypto analyst Credible Crypto.
Major cryptocurrencies experienced a significant increase in value as over $100 million was unexpectedly liquidated due to a surprise surge in the price of Bitcoin, coinciding with the start of "Uptober," a potentially bullish trend for cryptocurrencies in October.
Crypto strategist predicts that Bitcoin will enter a massive bull run and reach new all-time highs once it surpasses a key support level, but warns that bearish speculation from the stock market could decrease momentum.
Bitcoin could potentially face a 60% price drop, as liquidity remains negative and global rates continue to rise, according to Bloomberg Intelligence senior macro strategist Mike McGlone. He also suggests that a stock market drawdown related to a recession poses the biggest risk for the overall cryptocurrency sector.
Prominent venture capitalist Chris Burniske suggests that a phase of selling exhaustion in the cryptocurrency market may be approaching, presenting a potential buying opportunity despite prevailing fear; Burniske also highlights the possibility of Bitcoin and Ethereum dropping to lower price levels.
Bitcoin could face difficulties in the long term due to tightening liquidity in the current macroeconomic environment, according to crypto analyst Nicholas Merten. Merten believes that Bitcoin's price is heavily influenced by monetary policy and warns that if sentiment turns bearish, investors may start cashing out.
Despite the recent rally in Solana's SOL, it's unclear whether the price surge is a result of Bitcoin's movement or other factors, such as the successful network upgrade to version 1.16 and increased usage of decentralized applications and NFT volumes on Solana. Solana is trying to establish itself as the fifth-largest cryptocurrency by market capitalization, but faces stiff competition from Ethereum layer-2 solutions.
Despite some positive announcements, the prices of Bitcoin and Ethereum remained relatively stable, indicating that cryptocurrencies are less influenced by current news compared to the past; however, Avalanche and Solana experienced notable price rallies.
Bitcoin and other cryptocurrencies experienced a slight decline along with the wider market, but analysts are optimistic that the recent uptrend will persist.
Bitcoin price stabilizes after a brief dip, while altcoins face selling pressure and potential short opportunities.
Financial markets are under pressure after wholesale inflation data came in higher than expected, raising the likelihood of additional interest rate hikes by the Federal Reserve, while Bitcoin faces selling pressure and shows signs of a potential downward trend according to analysts.
Liquidity is dwindling in the altcoin market as risk appetite decreases, according to crypto analytics firm Glassnode, which also highlights low liquidity in the Bitcoin market.
Speculation arises about the influence of Friday the 13th on cryptocurrency markets, as Matrixport research suggests that breaching key support levels could trigger liquidations affecting Ethereum and Bitcoin.
Bitcoin and crypto markets are following a cyclical pattern, with bull markets typically occurring after halving events, but a significant pullback is anticipated in the period leading up to the next halving event in April or May 2023, potentially causing a drop in BTC prices.
The crypto market experienced a significant downturn this week, with Ethereum being hit particularly hard, trading at its lowest point since March. Other major coins and tokens, including Toncoin, Solana, Ripple, Polygon, and Bitcoin Cash, also suffered losses. Only Bitcoin saw a relatively smaller decline.
