Bitcoin Bears Are Piling Up, Crypto Market Sentiment Remains in Fear
Bitcoin is stuck in a range and continues to struggle to make its way out of it. The world’s leading digital currency is currently hovering around $9,200, turning barely green on just $1.3 billion ‘real’ trading volume.
The majority of the crypto market is in the red with a few expectations; Ontology (+5.24%), BAT (+4%), Nexo (+10.15%), and Loopring (+9%).
Small-cap coins are the ones that are gaining like crazy. “A whole bunch of random small shit I've never heard of popping,” noted analyst Ceteris Paribus.
Weird market – btc is definitely trading as a macro risk asset again (bullish LT), and small caps are popping/continue to hold up well even during btc chop/small dumps
Are we sure robinhood traders haven't dipped into crypto? Unlikely to move btc but can def move illiquid tokens
— Ceteris Paribus (@ceterispar1bus) June 24, 2020
Bulls better reclaim $9,550
Bitcoin is facing stiff resistance. According to the IOMAP model of IntoTheBlock, about 4 million addresses bought more than 2 million BTC between $9,200 and $9,700, which suggests holders who bought within this price range may try to take off profit to break-even if we get a bullish move.
However, for now, the bullish move doesn’t seem to be in the picture. Trader DonAlt who has said that the trading range that leads to a false breakout to the upside only to result in a down move has made shorts more attractive than longs points out,
“Failed breakout of the macro range into a failed breakout of the micro range.” According to him, bulls need to reclaim $9,550 or “aim for their brothers' blood below $8570.”
— CryptoYoda (@CryptoYoda1338) June 26, 2020
The market also remains in “Fear” with a reading of 40 on a 1-100 scale, a sentiment not changed since last month. After March, when the market was in extreme fear, market sentiments briefly turned into greed in early May and then in early June only to tumble in fear, as per Crypto Fear & Greed Index.
Adding more bears in the mix
Amidst all the bearishness permeating the market, the $2 billion Ponzi scheme PlusToken is also on the move. Recently, we reported that millions of Ether, EOS, and XRP had been moved, which hangs over the price of these digital assets.
While Ether has been outperforming bitcoin in 2020 so far, EOS and XRP are the biggest losers of 2020 among the top 25 cryptocurrencies.
But for bitcoin as well, the situation isn’t good because, according to ErgoBTC, all the remaining unmixed roughly 22k BTC has also begun entering their mixer over the last few days. ErgoBTC noted,
“Distributions to exchanges went on pause mid-march to early May. Since then, exchange flows have averaged ~300 to 500 BTC/day.”
Is it really bullish?
The most bullish news in the market came from Grayscale. As per its latest SEC filing, it has been deduced, the digital asset manager added 19,879 BTC to their Bitcoin Trust since last week, which is 180% more than what was mined by bitcoin miners (7,081 BTC) during this period.
Record fundraising day today for @GrayscaleInvest
— Barry Silbert (@barrysilbert) June 23, 2020
Grayscale’s Form 8-K, however, only mentions the shares issued, and as we have reported, about 85% of Grayscale’s bitcoin purchases are “in-kind,” which means the so-called accredited investors sent their own BTC to create more shares. These BTC are also locked for six months.
Grayscale’s digital asset offerings are the only option for Americans to get access to Bitcoin, Ethereum, and other cryptos via their 401k savings. And while institutional investors, mainly hedge funds are creating the shares, these retail investors are the one paying the premiums.