Cryptocurrency market sentiment remains weak, amid declines in global stock markets, a strong dollar and rising yields that put pressure on risky assets. Bitcoin remains above $26,000 and is losing less than 2%, Ripple, Alogrand and Kyber are also trading under pressure, losing nearly 8% today. Moonbeam, on the other hand, is doing great, gaining almost 39% after news of a potential listing on the Upbit exchange - trading volume on the cryptocurrency increased almost 20-fold overnight.
- A number of Glassnode indicators point to a resurgence of bearish sentiment (the price has fallen below the average purchase price of short-term investors buying BTC over the past 155 days)
- In their latest analysis, Glassnode analysts stressed that this year's influx of new investors into the cryptocurrency market was positive but very small
- On-chain data shows that the amount of bitcoin deposited on exchanges has been increasing in recent weeks, which may suggest a prolonged period of BTC weakness
Bitcoin and Moonbeam charts (D1)
Looking at the BITCOIN chart, we see that the price is trading below the SMA100 and SMA200 and sellers may want to test the 38.2 Fibonacci retracement at $25,600, which has so far proven to be important support. Breaking this boundary could indicate a test of $21,700 where the 61.8 Fibo runs. On the other hand, however, the MACD indicates a bullish divergence similar to that of the fall 2022 (yellow rectangle) - the key resistance remains around $28,000 (23.6 Fibo of the November 2022 upward wave).
Source: xStation5
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Create account Try a demo Download mobile app Download mobile appThe price of MOONBEAM cryptocurrency shot up in hopes of the cryptocurrency's listing on major exchanges and the subsequent increase in interest from speculators, but the gains were quickly extinguished near the SMA200 (red line) and are now retreating to the area around $0.22 set by the SMA100 and previous price reactions. If the bulls do not manage to rise above the SMA200 again - the base scenario is a further downward trend. The RSI indicator points to near overbought levels at 76 points.
Source: xStation5
On-chain data
Below, we see that the percentage of short-term addresses in profit has again scored a massive drop to levels not seen in 11 months (more than 97.5% of addresses are recording losses). This may mean that the pressure to sell off BTC at a loss in the STH (Short-Term-Holders) group may be growing as evidenced by the pattern of previous on-chain behavior (when the price fell below the average STH purchase price of BTC).
Source:Glassnode
Looking historically with the exception of a few instances where a similar situation to the current one, a price drop below the STH average has sometimes been a 'contrarian' signal; signaling an oversold market - a potential accumulation opportunity for long-term investors.
Source: Glassnode
The new investors confidence index (Glassnode calculates it by subtracting from the average BTC purchase price of long-term addresses (LTH), the average purchase price of investors selling out of Bitcoin and divides by the current maket price) again fell to negative levels, first time since January 2023.
Source: Glassnode
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