The crypto market, as erratic as ever, is caught in a tug of war between bullish and bearish forces. Amidst this scenario, top coins such as Bitcoin (BTC), Ethereum (ETH), and BNB have shown signs of stability and even recovery despite declining by 0.23%, 0.59% and 2.92% respectively.
Data from Glassnode’s weekly newsletter, “The Week On-Chain” shows that a majority of Bitcoin held by Short-term Holders (STHs) has slipped into loss territory after the recent plummet in prices. Interestingly, while short-term holders have felt the sting, long-term holders seem unfazed, neither panicking nor rushing to buy during the dip.
This relatively calm demeanor of long-term stake-holders and the S&P 500’s price correction amid an uptrend might signal potential buying opportunities. However, market watchers should remain patient until the correction ends. The bears seem to be trying to gain control, as reflected by the Relative Strength Index (RSI) in the negative territory and potentially bearish moving averages.
The crypto community should also keep a close eye on any updates from the United States Federal Reserve, specifically Chairman Jerome Powell’s forthcoming speech at the annual Jackson Hole Economic Symposium on Aug 25. Traditionally, U.S. stocks have seen an uptick in the week following the Jackson Hole event, indicating a potential boon for risky assets, provided Chairman Powell doesn’t spring any negative surprises.
Further, the U.S. Dollar Index (DXY) has shown resilience. Despite bearing the brunt of resistance from the bears, it has stood its ground, suggesting that buying pressure has remained relatively strong. If the index indeed surges above the downtrend, it might be a sign that the bears are losing their grip.
While these may present opportunities, disparities can still be seen. For instance, Ether’s recovery attempts are struggling to go beyond $1,700, BNB has taken a tumble below its vital support of $220, and Ripple’s relief rally is being hindered at a resistance of $0.56. While the bears seem to have the upper hand, the market could still swing in favor of the bulls, making for a dynamic and ever-enthralling space known as the cryptocurrency market. In conclusion, the markets are in a constant state of flux, with bulls and bears battling for supremacy in price trajectories of key cryptocurrencies. The smart strategy might be to remain patient until the dust settles. For now, we play the waiting game.
Source: Cointelegraph
