With the holidays coming, perhaps this will help explain some things. It's a long list, but scroll through and maybe you'll find something interesting! Cryptocurrency – what is it? Cryptocurrency is a currency similar to any other that you have used or heard of. Quite simply put; it’s a value associated with a digital coin,…
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The two largest cryptocurrencies by market cap, Bitcoin and Ethereum, have seen a significant rise in their open interest in the last couple of weeks. This comes even when the market is seeing struggling prices and investors have begun to take more conservative positions in the market. The drastic increase in the open interest across these two cryptocurrencies could have some significant implications for the crypto market as a whole. Ethereum Spikes With Bitcoin Bitcoin open interest has been on the rise over the last couple of weeks, which has led to some interesting forecasts for the digital asset, and now, Ethereum has begun following the same trend. Over the last week, the Ethereum open interest relative to market cap had surged alongside that of bitcoin. Related Reading: Here’s Why SUSHI Is Down More Than 10% In The Last 24 Hours Both digital assets had actually hit new all-time highs in this regard, beating June 2022 levels. Bitcoin had risen to 3.21% while Ethereum had peaked at about 4.24% during the same time period. So ETH is seeing even more extreme figures compared to bitcoin. To put this in perspective, the open interest to market cap ratio of ETH compared to BTC since 2019 has always sat at around 0.46%, representing a fairly small margin. However, this had changed in the last two years and the gap is ever-widening. BTC and ETH open interest reach new ATH | Source: Arcane Research The Ethereum Merge had been the main reason behind this spike. Since interest in the second-largest cryptocurrency had peaked as the upgrade drew closer, institutional investors had begun to set up shop in Ethereum, leading to the wide gap that is now being observed. Short Squeeze Incoming? A spike in open interest, especially one that hits all-time high levels, has always had massive implications for the crypto market, even if just in the short term. The current levels suggest that derivatives in both digital assets are very high at the moment, leading to extreme leverage levels. BTC price settles above $19,000 | Source: BTCUSD on TradingView.com With such high levels, it is important to keep in mind that while a short squeeze is more likely, it could go either way. Eventually, the leverage levels will begin to wind down, which is when the squeezes are expected to happen. Whatever way they swing in the end, the implications will be just as brutal for the market. Related Reading: Bitcoin Mining Difficulty Adjustment May Force Miners To Dump Their BTC Large market volatility and instability will be the order of the day when this happens. For investors, this is a time to take fewer risks to avoid being caught in this meltdown. The established bear trends and such extreme levels of leverage can be a recipe for disaster. Featured image from CoinDesk, charts from Arcane Research and TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
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In this episode of NewsBTC’s daily technical analysis videos, we are looking at the total cryptocurrency market cap with Bitcoin being so boring. We also compare past crypto winters to see when the deep freeze might end. Take a look at the video below: VIDEO: Total Crypto Market Cap Analysis (TOTAL): October 12, 2022 There isn’t all that much new to report. Bitcoin and other cryptocurrencies continue to move mostly sideways, as the market awaits the CPI data release tomorrow at 8:30AM ET. Related Reading: The End of Bitcoin Woes? BTCUSD Analysis October 11, 2022 Why Crypto Winter 2022 Resembles 2015 Bear Market Much like Bitcoin, there is a slow moving showdown to gain control over daily momentum, according to the LMACD. On weekly timeframes, Bitcoin only just turned bullish last week, while the total crypto market cap has been bullish for several months now. Comparing the LMACD across past bear market bottoms shows that the indicator is behaving more similarly to the 2014 and 2015 bear market bottom. In 2018 and 2019, price action turned up sharply instead and the indicator followed. Sideways momentum could mean many more months of pain | Source: TOTAL on TradingView.com Total Cryptocurrency Fractal Shows Possible Price Action Preview The price action in each drawn box is eerily similar. Taking the bars pattern to place a fractal over current price action, the setup is practically the same. If the total crypto market follows a similar trajectory, a strong breakout attempt will ultimately fail and lead to a double bottom formation. Since the fractal projects price action forward, turning on the Ichimoku indicator which also looks into the future, is forecasting potential resistance right where the fractal would interact. Will crypto winter remain until the cloud is broken? | Source: TOTAL on TradingView.com Related Reading: Bitcoin Bulls Snap Back With The Bollinger Bands | BTCUSD Analysis October 5, 2022 Will The Downtrend Come To A Conclusion This Week? However, there is no telling if this is indeed the bottom in cryptocurrencies, nor does anyone know if the market will behave like the last two bottoms. If not, and crypto continues down, the move could start this week. The TD Sequential market timing tool has triggered a TD9 buy setup. However, the series is perfected only when the 9 candle makes a lower low. Note how past 9 candles on the way down lit up red and resulted in a deep move down. While this is possible, the TD9 setup is also a possible turning point where bulls could regain control. A TD9 buy setup has appeared on weekly timeframes | Source: TOTAL on TradingView.com Learn crypto technical analysis yourself with the NewsBTC Trading Course. Click here to access the free educational program. Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice. Featured image from iStockPhoto, Charts from TradingView.com
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Four legal claims were dismissed by the court, while three others were allowed to proceed.
