Bitcoin's & Ethereum's Near-Term Moves Expected to Signal Further Direction
The price of most major cryptoassets, including bitcoin (BTC) and ethereum (ETH) continued to fall on Monday, after mixed performance over the weekend for both of the two largest coins. The mixed market action has left traders uncertain about what to expect next, with some analysts saying the next near-term move will likely signal further moves in the same direction.
At 16:40 UTC, BTC traded at USD 42,335, down almost 3% over the past 24 hours and up 1% over the past 7 days. At the same time, ETH stood at USD 3,233, down over 4% for the past 24 hours and up 2% for the week.
14-day BTC price:
14-day ETH price:
In a weekly update from the on-chain analytics firm Glassnode, the current bitcoin market was described as in “a docile state,” with market participants now digesting what high inflation and tightening in monetary policy from the US Federal Reserve (the Fed) might mean for the number one cryptocurrency.
The change in tune from the Fed has “rattled the bitcoin market in the short term,” Glassnode wrote, adding that the risk now is that it is also “taking control over its medium term prospects.”
As far as the price of bitcoin goes, the analysts said that the medium-term direction is likely to be decided by the next near-term move. A strong bullish impulse could trigger a relief rally, while further weakness could cause traders who are already at a loss to “capitulate,” the analysts added.
Today’s update from Glassnode follows a warning from the same firm last week that leverage in the form of open interest in bitcoin futures had touched all-time highs.
With “extreme leverage” and on-chain metrics indicating “significantly oversold conditions,” Glassnode back then hinted that a bullish short squeeze would be the most likely
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