This week, the Bitcoin market was relatively quiet, with the high at around $23,832 and the low at about $22,486. Despite the overall market volatility in June, the position within the Ethereum and Bitcoin derivatives markets is still relatively stable, according to Glassnode Insights.
ETH Traders Holding Long Positions in the Derivatives Market
In the Ethereum derivatives market, traders still hold a long position despite the recent price decline. They are using call options to bet on the price of ETH in September. On the other hand, the options and futures markets are backward, suggesting that investors are expecting a sell-the-news movement.
This activity suggests that institutions in the maturing options and futures markets carry some form of sophisticated market positioning. It indicates that investors are still willing to take on more exposure to Bitcoin, though they have not yet taken on heavy positions. There is little evidence of directional bias in the Bitcoin derivatives markets.
On the other hand, in the Ethereum derivatives market, traders still hold a long position despite the recent price decline. They are expecting a sell-the-news movement when the September contract expires. Both the futures and options markets are in backwardation, which suggests that investors are expecting a ‘buy the rumour, sell the news’ event.
Unlike the recent demand peaks, spot withdrawals for ETH from various exchanges are relatively small. It suggests that sophisticated traders still use the derivatives markets as their preferred tool to hedge their positions and take advantage of the upcoming merge event.
Bitcoin is Targeting $24,000
The value of bitcoin started the new week at around $24,200. It then rallied over $500 during six hours and reclaimed its 50-day moving average. The move was a huge boost to the cryptocurrency’s value.
Bitcoin’s technical level of the 50-day moving average is regarded as an important technical indicator. It was one of the factors that triggered the market crash two months ago. Since the price of bitcoin has recovered its 50-day moving average, it has started to convert its bullish signals into negative ones. It means that the market is expected to continue growing.
The price of bitcoin has recovered its support level at around $23,500. This support level acted as a bounce-off point during the recent rally. Now, its resistance level is approximately $24,500, a psychological level that has been difficult to break since the crash.
Stellar (XLM) and Avalanche (AVAX) are Surging
The rise of XLM and AVAX coins is attributed to the announcement by Robinhood, a digital trading app, that it has added these two to its list of assets that are available for purchase.
At the time of writing, XLM was trading at $0.1314, up 6.04% over the past 24 hours. On the other hand, AVAX was trading at $29.73, up 7.5% over the past 24 hours.
The rising prices of both tokens are attributed to the positive trend they have been experiencing since August. In addition, the belief that the crypto market is starting to turn around following its recent bear market might have contributed to this rise.
Cryptocurrencies currently listed on Robinhood include BTC, ETH, LTC, ETC, BSV, BCH, DOGE, MATIC, SHIB, COMP, SOL, LINK, and UNI.
Sentiment Remains Positive in the Crypto Market
Despite the recent decline in sentiment in the cryptocurrency market, it has been relatively stable over the last few months. During the market crash in June, investors feared that the market would never recover. However, this has not been the case.
BTC has started to change the market sentiment. Before this, the market was considered to be in the fear territory. However, now, it is beginning to show signs of stabilization. The Fear & Greed Index is currently at 30. It shows that the market is starting to feel more positive.
The return of faith in the market has resulted in more investments. According to data from the exchange, investors accumulated the cryptocurrency last week. There were also more addresses with at least one Bitcoin in their possession, reaching an all-time high of 892,803.
Despite the slow progress in the market’s recovery, it is still too early to tell if the sentiment will turn bullish once bitcoin hits $25,000. However, if it does, the market will likely start to move in a bullish direction.
Source: https://crypto.news/the-crypto-market-sentiment-remains-positive/