The new week for the cryptocurrency market starts with 20 points of “extreme fear”. BTC, ETH, SHIB and DOGE are the main names that investors who are overwhelmed by the bear market are waiting for signs. Experts are now discussing 2 conditions needed by the market to stay behind the crypto winter.
Edward Moya drew attention to the strength of Bitcoin (BTC) despite macro developments
Bitcoin and Ethereum start the new week green, as in the US stock futures market. This week will be filled with record inflation and fears of an impending recession. In particular, senior market analyst Edward Moya says Bitcoin is holding up nicely amid the recent upheaval on Wall Street. “Expectations for Fed rate hikes are rising and Bitcoin is still holding the $19,000 level,” Moya said in a new note.
Moya also points out that Bitcoin’s period of stability is “good news” for long-term bulls:
High-frequency trading systems and hedge funds have their preferred shorts, and right now Bitcoin is becoming a long-term investment for many… If US stocks dip below the 3,600 mark this earnings season and Bitcoin doesn’t drop below summer lows, crypto winter could officially be called
Meanwhile, the “Fear and Greed Index” started the new week with “extreme fear”. The index, which is currently 20, was at 22 last week. A value of 0 means “Extreme Fear”, while 100 means “Extreme Greed”.
Michaël van de Poppe tweets “big week coming”
The popular analyst says the markets and technical analysis show that “a big move is about to happen.” Van De Poppe said that Bitcoin is “squeezed” and ready to “break” above the $19,600 level.
Big week coming up.
Not on macro-economic data side, but markets and TA show a big move is about to take place.
▫️ #Bitcoin squeezing and ready for a breakout above $19.6K.
▫️ Yields & $DXY about to reverse in 1-3 weeks.
▫️ Indices need to bounce on 200-Week MA.— Michaël van de Poppe (@CryptoMichNL) October 16, 2022
Poppe points out that the metric’s values are “significantly lower” compared to the 2019-2021 period. Looking at this, he stated that there was “a huge lack of demand and activity in the futures market”:
The funding rate should be watched closely in the short-term, as possible extremely negative values increase the possibility of short-term squeeze and could cause a reversal in the price of the cryptocurrency.
Whales sell Ethereum for $4.2 billion
On the Ethereum side, investors holding 100 to 1 million ETH have sold 3.3 million ETH in the past weeks. Santiment says that equates to about $4.2 billion:
The price between ETH price and [Bitcoin] has fluctuated depending on the [behaviours] of these key stakeholders.
🐳🦈 #Ethereum's shark & whale addresses (holding 100 to 1M $ETH) have dropped 3.3M $ETH in just the past 5 weeks. This equates to about $4.2B in dumped coins. The asset's price vs. #Bitcoin has ebbed and flowed based on behavior of these key stakeholders. https://t.co/1L2iGaoxzg pic.twitter.com/jDkSzS6Vyk
— Santiment (@santimentfeed) October 16, 2022
Nigel Green believes long-term investors are crucial to BTC
Nigel Green, CEO of DeVerge Group, discussed the importance of long-term investors in the cryptocurrency market in a recent interview. Green says that long-term investors play an important role in the cryptocurrency market. With more volatility expected in the coming months, Green said that long-term investors will have the opportunity to buy cryptocurrencies at low rates:
Given the current correlation of Bitcoin and Ethereum with exchanges, we expect more, perhaps increased volatility in the crypto market before the end of 2022. However, for serious investors this will not necessarily be seen as a bad thing.
Green added that big investors will treat volatility the same way they treat such events in other financial markets. The veteran investor also explained:
Large investors, including institutional ones, will treat it the same as turbulence in any other market. Some of the world’s top investors are constantly using market volatility in traditional financial markets as a great buying opportunity, and the cryptocurrency market is no different. Used effectively and efficiently, volatility can be an extremely powerful investment strategy.
“Serious investors will not be afraid of more volatility”
Green said that despite the current volatility, Bitcoin (BTC) has outperformed in recent years:
Bitcoin remains the best performing asset class in the world and has consistently ranked among the best for both the traditional and crypto investment sectors over the past few years. Knowledgeable, long-term crypto investors will seek to capitalize on panic sellers by buying cryptocurrencies ‘cheap’ to enhance their investment portfolios. Serious investors should not be afraid of more volatility. This isn’t their first rodeo.
cryptocoin.comAs you follow, the Bitcoin network was unable to generate new blocks for an hour today.
