Market Watch 8/17/2022
Updated: Aug 19, 2022
Bitcoin (BTC) - the #1 rated cryptocurrency by total market cap - has been in a bit of a down-trend this week.
The crypto king is down 1.6% over the last 7-days and down 2.8% in the last 24-hours.
It’s been almost two-months exactly since Bitcoin hit a 52-week low price of $17.7K - and now that its had about 2-months of up-only prices - up roughly 25% from the bottom - the latest down-trend has many Bitcoin speculators wondering if its headed back to test the bottom prices yet again.
Bitcoin chartist @el_crypto_prof took to Twitter to share a bit of hopium. They posted this BTC price chart with the following comments:
“-Don't get panicky, just because the market corrects a bit [The] Bottom is in. $BTC has been in the channel (RSI) since 2013. -Every time the RSI touched the lower channel, the bottom was in. -When touching the upper channel, the peak was reached.”
RSI is a momentum indicator that stands for Relative Strength Index.
If history holds true - $17.7K should be the bottom of this current bear-market-cycle. But that doesn’t necessarily mean that Bitcoin won’t test those lower prices once again. Twitter user @PeakDeFi shared this chart of Bitcoins’ price dropping beneath a monthly trendline on Wednesday, indicating that the next part of the week could be bearish for speculators.
Wednesday’s sudden shift in price tricked many of the “hot money” speculators. Paolo Ardoino, the CTO of Bitfinex & Tether, tweeted:
“Why bitcoin why…”
With a picture of this chart, which shows Bitcoins’ 500-point price drop in less than 60-minutes.
The quick action liquidated $6.1M in short positions on the run up. And $16.3M in long positions on the way down.
A good reminder to be very careful if you decide to use leverage on your positions. In a somewhat historic turn of events - Ethereum flipped Bitcoin!
Not in the traditional market cap sense - aka “the flippening” - but on the Open-Interest
As we can see from the chart - Ethereum open-interest flipped Bitcoin open-interest in
early August. The first time in history for such an event. @Crypto-Gucci commented on Twitter:
“Ethereum open interest continues to skyrocket against Bitcoin as ETH options open interest hits new all-time highs.”
Speaking of Ethereum, let’s see what the #2 ranked cryptocurrency has been up to...
Ethereum (ETH - pronounced ‘eeth’) - like Bitcoin, also saw prices heading in a downward trend this week. Ethereums’ price hit a 7-day high of $2.02K on Sunday before turning bearish for the week - and dropping 9% from the weekly high.
ETH prices remain up-big on the 30 and 90-day price charts - up 25% on the 30-day and up 52% on the 90-day… The current downtrend over the last 7-days means that the market price is correcting - but just how big of a correction is needed will be seen over the coming days and possibly weeks.
We can’t talk about Ethereum prices without mentioning Ethereum’s upcoming Merge.
As it stands today, Ethereum (and the crypto-world) is less than 30-days away from the much anticipated Merge date - expected to be sometime between Sept. 15th and 17th.
Because the Merge is so close - many speculators are wondering what effect the Merge will have on Ethereums’ price over the next few weeks leading up to the Merge - and beyond.
“Despite the narrative that has already been building around the Merge, positioning is still quite light within the more discretionary pockets of the market...
Given the cautious positioning and constant desire to “fade” the trade, I expectthe next four weeks to follow a similar path as the prior four…
I expect the hype around the Merge to magnify significantly as the date comesinto focus and the narrative is picked up by the mainstream media.
The primary investment case remains the same, there is an enormous opportunity to front-run the largest structural shift in the history of crypto.”
Viewers who are interested in tracking the official launch date of the Merge can visit
bordel.wtf for more information.
[Global Market Cap]
The total market cap for the global crypto market is down 4% on the 5-day chart - and
down 7% from the weekly high.
But if we pan out a little bit - the total crypto market cap is still up 15% over the last 30-days - and up 20% over the last 3 months.
Taking a look now at the Bitcoin Dominance Chart not much new to report here as the positions of the major players remain mostly unchanged.
Bitcoin stays in the number 1 spot with 40.1% market share.
Ethereum is in second place with 20.8% market share.
And Tether (USDT) is in third with 6% market share.
On a list of CoinMarketCaps’ Top 100 cryptocurrencies, Chiliz (CHZ) - ranked 46th by total market value - is the week's biggest gainer.
Chiliz, which bills itself as “the leading digital currency for sports and entertainment” rose by 42% on the week - outperforming its competition.
On the other side of the top 100 - Mina (MINA) - ranked 82nd by total market value - is the week’s biggest loser. The MINA coin is down 18.8% for the week.
The Crypto Fear and Greed Index, which analyzes market sentiments for Bitcoin and other top cryptocurrencies, is currently at 30 - indicating that ‘fear’ is the predominant sentiment amongst market investors.
The index is down 11 points from last week - meaning that market sentiment has grown
more fearful over the last 7-days.
Now time for the “Smart Money” segment powered by Nansen research and analytics.
Nansen analyzes the on-chain data of crypto wallets that are “active and prolific” - such as, “whales, funds, or smart LPs (smart-contract liquidity-providers)” - and calls these wallets, Smart Money.
The leading Smart Money destination over the last 7-days is Wrapped Ether (wETH), with an increase of $85.8M - although the token has seen an outflow $9.4M over the last 24-hours.
The numbers indicate that Smart Money remains bullish on Ether.
On the other side of the equation, Smart Money is exiting its position in Aave interest bearing Wrapped ETH (aWETH_v2).
Approximately $155M has been sold in the last week.
Aave is a decentralized crypto lending platform - and what’s likely happening here is that Smart Money is taking out Ethereum loans from the Aave platform as a way to “farm” the upcoming Ethereum Proof-of-Work (ETHPOW) airdrop… but more on that in a future article.
We’ll end today's article with a little crypto Arts and Culture - as we take a look at the weeks #1 highest selling NFT.
And this week's winner is…
Bored Ape Yacht Club #5383
The Bored Ape sold for 777 ETH, worth approximately $1.46M at the time of sale.
And that does it for this article, thanks for your read. Check out our videos on YouTube at https://www.youtube.com/channel/UCEqffv0zBHzqmDwNaMKXDHA