Bitcoin, Ethereum, Dogecoin Slide: Analyst Warns of ‘Very Volatile’ Week Ahead – Bitcoin (BTC/USD), Ethereum (ETH/USD)
Major coins showed weakness Sunday night as the global cryptocurrency market capitalization shrank 1.4% to $922.5 billion at 8:05 PM EDT.
Coin | 24 hours a day | 7 days | Price |
---|---|---|---|
Bitcoin BTC/USD | -1.4% | 1.2% | $19,039.14 |
Ethereum ETH/USD | -2.6% | -1.35% | $1,276.90 |
Dogecoin DOGE/USD | -2.25% | -2.9% | $0.06 |
Cryptocurrency | 24-hour % change (+/-) | Price |
---|---|---|
Maker (MKR) | +3.5% | $756.62 |
Reserve rights (RSR) | +2.5% | $0.01 |
Pancake Swap (CAKE) | +1% | $4.57 |
See also: Best USDC interest rates
What happened: Bitcoin and Ethereum traded in the red along with US equity futures, which were also marginally in negative territory at the time of writing.
September was the worst month for the S&P 500 and Dow Jones Industrial Average since March 2020. The month was bad for stocks overall, with all major indexes falling into the red. On the other hand, cryptocurrencies showed more resilience.
OANDA senior market analyst Craig Erlam said last week was choppy for Bitcoin, which failed to make big moves in either direction.
“Perhaps we’ll see a floor forming a bit back of the early summer lows around $17,500, although that will largely depend on risk appetite not falling again, which it has the potential to do,” Erlam said.
“I continue to use the word resilience when discussing bitcoin, and that has largely remained the case.”
Alternative.me’s “Crypto Fear & Greed Index” remains at “Extreme Fear” into the new trading week. A value of 0 on the index represents “extreme fear,” while 100 means “extreme greed.” Last week the index stood at 21, while at the time of writing it stood at 24.
Michael van de Poppe said on Twitter that the coming week will be “very volatile” as markets closed “terrible last week.”
The cryptocurrency trader said he would look at the correlation between Bitcoin and indices.
Van de Poppe said he would look for the ISM report which tracks the purchasing managers’ indices along with vacancies and meetings in The Organization of Petroleum Exporting Countries (OPEC).
The coming week will be very volatile, as the markets closed terribly last week.
Personally looking mostly at ISM tomorrow, vacancies and OPEC meetings.
Also looks at the connection between #Bitcoin & indexes. Last week indicated more strength in the #crypto.
— Michaël van de Poppe (@CryptoMichNL) 2 October 2022
The ISM data is expected on Monday. This month, investors can also expect the release of Federal ReserveFOMC minutes and news surrounding the president Xi Jinping’s third period.
CryptoQuant tweeted about “loyal hodlers” selling Bitcoin. The community-driven analytics platform shared a note in a post on Sunday.
“In the late stages of bear markets, even the more loyal investors tend to capitulate out of fear and sell their coins at heavy losses to prevent bigger ones,” wrote Edris, an analyst at CryptoQuant.
The analyst used a metric called Spent Output Age Bands to track coins aged 6-18 months that have been selling aggressively recently. These were purchased between April 2021 and April 2022 at prices above $30,000.
“Many holders who entered the market during the 2021 market and above the $30K mark have recently capitulated and exited the market with a loss of approximately 50%,” Edris wrote.
Bitcoin Exchange Inflow — Used output age band, courtesy CryptoQuant
“These types of capitulations tend to occur during the final months of a bear market, pointing to a potential bottom formation in the near future.”
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