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Bitcoin Price

Greed Didn’t Hold Bitcoin Price at $60K – Market Summary

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On Wednesday (27) the market capitalization of cryptocurrencies dropped nearly $200 billion in one day, Bitcoin (BTC) dropped nearly 7% and most altcoins followed. With the exception of Shiba Inu, which sets a new price record.

According to the cryptocurrency market leverage index, the increase in investor risk appetite reflects the build-up of excessive leverage we are now seeing. Understand how this scenario can impact asset prices here in the Market Summary.

Bitcoin falling and Shiba Inu hitting a new price record.
Cryptocurrency ranking – Source: CoinGoLive.com.br

Greed and risk appetite

Bitcoin is trading with a heavy tone amid signs of excess leverage and greed in the market.

The largest cryptocurrency by market value this morning (27) fell to US$ 59,000 – R$ 331,000 in the main Brazilian brokers – which represents, so far, a drop of 6.31% on the day.

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That’s a 12.36% drop from last week’s record of $67,277, as CoinGoLive data shows.

Read too: Who will pierce the ceiling first: Bitcoin or Bolsonaro?

A pullback was overdue, and further bearish volatility could be imminent, according to analysts. “The estimated leverage ratio is about to reach the year’s maximum. It seems obvious that the market is over-exploited right now,” said Ki Young Ju, CEO of data analytics company CryptoQuant. “We will see some volatility with big sales soon.”

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The estimated leverage ratio is calculated by dividing the open interest on futures across all exchanges by the bitcoin reserves on the exchanges. Open interest refers to the number of contracts traded but not covered by an offsetting position.

The index essentially shows the degree of leverage of the average investor. While a rising index indicates increased risk appetite, a very high number reflects the accumulation of excessive leverage and hit high price indices earlier this year.

Average leverage of all brokers according to CryptoQuant

The leverage ratio currently stands at 0.19, the highest since November 2020. Even with this level of risk, it seems that investors in the cryptocurrency market were not intimidated. The Fear&Greed index shows that investors are still very optimistic about this level of risk.

The digital asset’s market capitalization has dropped to $1.11 trillion, but its dominance over altcoins still remains around 43 percent.

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Bitcoin “makes little sense as a currency,” says economist

As it is now part of the agenda of Brazilian politicians to discuss Bitcoin, this Tuesday (26) in a public hearing at the Commission for Financial Inspection and Control of the Chamber of Deputies, three speakers gathered concluded that the eventual adoption of an official digital currency in the Brazil will require the participation of the National Congress in changes to the rules that deal with the Central Bank, the financial system and the foreign exchange market.

The debate was suggested by deputy Aureo Ribeiro (Solidariedade-RJ), president of the Financial Inspection and Control Commission. However, yesterday afternoon’s work was coordinated by Deputy Hildo Rocha (MDB-MA).

Also present at the meeting was the professor at the São Paulo School of Business Administration (Eaesp) of the Getúlio Vargas Foundation Eduardo Diniz, who praised the Central Bank’s caution in predicting the eventual adoption of the Real Digital in two or three years’ time. “It could be sooner or later, it is necessary to see how this possibility will evolve in the world.”

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“It makes little sense [ter bitcoin] as currency,” said Eduardo Diniz, a professor at EAESP when talking about the adoption of bitcoin in El Salvador. In his view, it makes little sense as states would not be willing to give up national currencies.

Diniz is in favor of the public sector’s monopoly over currency and payment platforms so that the state can guarantee free competition. He comments, at a hearing in the Chamber of Deputies, the possible problems in leaving the payment system in the hands of private companies:

“On the other hand, these technological platforms have a very high risk of concentration… it is a situation in which the State has to regain control of these situations to avoid future problems” – said the professor

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Shiba Inu hit a new price record

Like the BTC, most alternative currencies have also gone down badly this morning. Ethereum (ETH), for example, dropped to less than $4,016 after nearly hitting a record price hours ago.

Read too: First Ethereum 2.0 Upgrade Happens Today, See What Changes

However, there are some obvious exceptions. Shiba Inu (SHIB) rose more than 20% in one day. Furthermore, SHIB gains were well above 30% just a few hours ago – before the market-wide drop. Consequently, the meme token reached a new all-time high and trades at $0.000054.

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Another exception is Project Aave (AAVE), which grew 10.4% on a 24-hour scale and is currently above $371.

The result of the main altcoins in the last 24 hours is as follows: Ethereum (-5.19%), Binance Coin (-7.42%), Cardano (-10.23%), Solana (-10.25%), Ripple (-9.46%), Polkadot (-5.42%), Dogecoin (-13.24%), Shiba Inu (+24.62%), Earth (-9.16%), Avalanche (-13 .26%) and Chainlink (-8.34%).

The cumulative market capitalization of all cryptocurrencies dropped to $2.57 trillion.

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Bitcoin Price

This Bitcoin price metric just hit ‘oversold’ for only the 7th time in 8 years

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A Bitcoin (BTC) price metric, which made BTC “look seriously cheap” at $56,000, is now in rare oversold territory.

In a tweet on Dec. 6, Philip Swift, creator of analytics platform LookIntoBitcoin, returned to potentially bullish signals coming from Bitcoin’s Advanced NVT Signal.

Advanced NVT deflates in Bitcoin price rout

Advanced NVT calculates whether Bitcoin is overbought or oversold at a certain price point, using market capitalization and network volume.

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In late November, when BTC/USD had already fallen to $56,000, Swift suggested that a bounce was due.

The metric subsequently continued to fall in line with spot price thanks to last Friday’s liquidation cascade. A possible plus, however, lies in the return of “oversold” cues from NVT — something which has only occurred six times since 2015.

“A lot of fear in the market currently, which makes me bullish. Lots of indicators suggest we are near a bottom,” he said.

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“Advanced NVT Signal looks at price relative to onchain transactions. It has only been this oversold a few times before, each time resulting in a strong bounce.”

Bitcoin advanced NVT signal annotated chart. Source: Philip Swift/Twitter

The strength of such a bounce nonetheless may have already faded, with Bitcoin reversing after around 6% overnight gains to $51,500 on Bitstamp.

Trader to BTC buyers: Wait a week to “avoid chop”

At press time, $51,000 formed a focus amid heavy indications from commentators that fresh downside could soon enter.

“Buy in low to mid 40’s. Not get trapped,” trader and analyst Pentoshi advised Twitter followers.

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As Cointelegraph reported Monday, meanwhile, there are plenty of reasons to separate spot price action from underlying strength in Bitcoin.

Among them is the all-time high hash rate, along with a broad lack of selling. Smaller hodlers, by contrast, have been adding to their positions throughout the past week.

Only whales appear to be hedging their bets, as evidenced by exchange flow data.

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Bitcoin Price Rise From the Ashes! Why Should You Buy BTC Below $53K?

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Protagonists and analysts across the crypto market acknowledge that HODLers, especially long-term holders likely be the recipients of prospective Bitcoin price moves ahead. On Tuesday,  increased bets on buying the dip have gradually uplifted the wider crypto space. Notably, the top cryptocurrencies of the space quickly restored their momentum. However, as the majority of the altcoins forfeited their gains, cash-flow tunes in for BTC price action. 

On the other hand, the crypto analyst The Wold Of All Streets shared his view on the current market scenario. He is optimistic about the BTC bull run if the price manages to break above $53k. In case of a bearish move, the price would heavily plunge to $28k if it fails to gain strength around $42k. 

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A crypto metric platform Santiment confirms the huge whale accumulation in a recent price drop. While Bitcoin price plunged to its multi-month low of $43.5k, retail whales holding between 10k to 100k BTC accumulated a record high of 67k more Bitcoin in just 3 days after the market crash. However, the investment move strives to prove the primary coin as a less risky asset. On the other hand, these whales would quickly liquidate in terms of any uncertainties, hence it is mandatory to do thorough research before investing. 

Collectively, Bitcoin price is hopeful of an incredible rally ahead. Analyst Dylan Leclair is likely to be pretty much convinced with the bull market ahead. The chart shown by him hints at a probable steep uptrend in the next couple of weeks. As December holds a high probability of massive leg up, the flagship asset would claim a new ATH. However, short-term holders and newbies are advised to be cautious of uncertainties such as market crashes or whale manipulations.

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Bitcoin Price Flash Crashed to $28.8K on Huobi: Over $2.5B Total Liquidations in 24 Hours

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While bitcoin dumped to $42,000 on most exchanges, Huobi saw a more substantial drop as BTC went below $30,000.

A flash crash transpired on Huobi as BTC went all the way down to $28,800 before recovering just as sharply. At the same time, the liquidations are well above $2.5 trillion on a daily scale as the entire market is deep in the red.

  • As reported earlier, bitcoin, and the entire cryptocurrency market, went through one of its worst crashes in recent history. BTC plummeted by $16,000 in a day from around $58,000 to an intraday low of $42,000 on Bitstamp and most exchanges.
  • However, other trading venues saw even more dramatic price drops. Such was the case with the BTC/USDC trading pair on Huobi, where bitcoin dropped all the way down to $28,801, as the picture below shows.
BTC/USDC on Huobi. Source: TradingView
BTC/USDC on Huobi. Source: TradingView
  • Such events are known as flash crashes, in which the price of the underlying asset drops significantly lower on one (or more) exchanges compared to most and recovers immediately.
  • As it happened in previous times that CryptoPotato reported, the price of BTC recovered just as quickly as it fell.
  • Separately, the aforementioned market dump, which caused massive double-digit price nosedives for almost all coins, resulted in severe pain for leveraged traders.
  • According to data from CoinGlass (formerly known as Bybt), the total liquidations are above $2.5 billion on a daily scale. In the past 4 hours alone, the liquidations are over $1.5 billion.
  • The number of traders liquidated is just shy of 400,000, and the largest single liquidation order was worth $28 million and transpired on Bitfinex.
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