Sebastian Sinclair

Digital assets are flashing signs of a potential short-term price recovery following a breakdown in the market last year and more than two months of subsequent sell-side pressure.



Bellwether crypto <a href="https://blockworks.co/price/btc">bitcoin</a> is now at its “greediest” point in four months, according to the Bitcoin &amp; Crypto Fear and Greed Index by research site <a href="https://btctools.io/stats/crypto-fear-and-greed-index" target="_blank" rel="noreferrer noopener">BTC Tools</a>. Other related indexes place that greed sentiment at <a href="https://alternative.me/crypto/fear-and-greed-index/?daily_hash=2e07a730d4aa4101dbf0ed3866b9d115c51af8b1#history">two-month highs</a>.



The crypto was last seen changing hands for around $18,830 after briefly reaching an intra-day peak above $19,100 on Thursday, exchange data show. That marked the first time it had traded beyond that point since Nov. 8 — <a href="https://blockworks.co/news/ftx-bankrupt-hacked-investigated-a-timeline-of-events">the FTX breakdown</a>. Bullish traders are now hoping for a <a href="https://twitter.com/Nebraskangooner/status/1613641694427086849" target="_blank" rel="noreferrer noopener">strong daily close</a> above $19,000 to validate a <a href="https://twitter.com/CryptoKaleo/status/1613626453303693315">continuation</a> of bullish price action.



Bitcoin and, by extension, digital assets have hit a peak of 66 out of 100 on BTC Tools’ index — the highest recording since September 13, 2022.&nbsp; The index is a measure of four metrics including trade volume, open interest, social media sentiment and search data via Google and Bing.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="488" src="https://blockworks-co.imgix.net/wp-content/uploads/2023/01/BTC-FG-Index-history-1024x488.jpg" alt="" class="wp-image-44043" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2023/01/BTC-FG-Index-history-1024x488.jpg?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/BTC-FG-Index-history-1024x488.jpg?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/BTC-FG-Index-history-1024x488.jpg?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/BTC-FG-Index-history-1024x488.jpg?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/BTC-FG-Index-history-1024x488.jpg?w=470 470w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/BTC-FG-Index-history-1024x488.jpg?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/BTC-FG-Index-history-1024x488.jpg?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2023/01/BTC-FG-Index-history-1024x488.jpg?w=1064 1064w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption class="wp-element-caption">Historical Bitcoin &amp; Crypto Fear and Greed Index; Source: <a href="https://btctools.io/stats/crypto-fear-and-greed-index" target="_blank" rel="noreferrer noopener">btctools.io</a> </figcaption></figure>



A high value, above 50, indicates traders and investors in the market may be getting too greedy and a correction could soon be on the cards. Conversely, a value well below signals fear — by contrarian trading philosophy — may present a reversal to a downward trend.



&#8220;The index turned from Fear to Greed in the last few days as anticipation built over a bullish CPI print for December,&#8221; Zhong Yang Chan, head of research at CoinGecko told Blockworks.



<blockquote class="wp-block-quote">
“The CPI came in within consensus estimates, falling by 0.1% month-on-month, adding to hopes that the US Fed may further moderate rate hikes in the coming FOMC meetings,” he said.
</blockquote>



Traditional markets <a href="https://blockworks.co/news/crypto-notches-rare-rally">have begun to push for higher gains</a>, beginning Jan. 5, with the S&amp;P 500 closing 0.34% higher to 3,983 on the day, following a shaky intra-day trading session. The Dow Jones Industrial is also up 3.45% to 34,182 after printing a series of higher-highs over a four-day period, beginning Jan. 6.



Though not all remain convinced as looming questions surrounding macroeconomic stability including rising inflation and record <a href="https://thehill.com/changing-america/respect/poverty/3807809-us-households-debt-rises-to-16-5-trillion/" target="_blank" rel="noreferrer noopener">household debt</a> have some hesitant to call for an early rebound in digital assets.



&#8220;Hopium is a powerful drug, but poor macroeconomic conditions combined with <a href="https://blockworks.co/news/genesis-gemini-charged-with-securities-violations-by-sec">Genesis/Gemini&#8217;s SEC-baiting death match</a> will sober up the market in short order,” Jehan Chu, founder of Hong Kong trading firm Kenetic told Blockworks. “Further lows and a final market capitulation seem closer than a recovery.”



<h3 class="wp-block-heading">Blood was on the streets</h3>



Most traders are aware of the statement that an opportune time to buy is “when there&#8217;s blood in the streets,” first coined by 19th-century British financier Nathan Rothschild.



The markets certainly had their <a href="https://blockworks.co/news/the-last-10-days-in-the-ftx-saga-a-timeline">bloodiest few days in November</a> following revelations FTX allegedly defrauded customers and commingled funds with sister trading firm Alameda Research. It would appear traders are taking advantage of recent rivers of red in the short term.



Following their latest downfall, digital assets had struggled to recover from a brutal sell-off beginning on Nov. 6 at around $21,300 and ending on Nov. 21 with a low of $15,612 — a loss of more than 27% peak to trough.



At that point, the Fear and Greed index had dipped to its lowest point in more than 16 months indicating extreme fear had gripped the market where a recovery closely followed suit.&nbsp;&nbsp;



Recent daily levels of decentralized exchange trade volume have slowly been rising across multiple chains, data provided by <a href="https://defillama.com/dexs" target="_blank" rel="noreferrer noopener">DeFiLlama show</a>.



Ethereum has also begun flashing signs of increased activity on-chain. The world’s second-largest crypto by market capitalization achieved a major milestone late Friday, with the number of daily validators <a href="https://blockworks.co/news/ethereum-to-reach-500000-validators">exceeding 500,000</a>.



Validators are essential in guaranteeing the integrity and security of the Ethereum network — more is generally a positive sign for the Ethereum ecosystem, as the economic stake securing the network now tops $22 billion.



The ETH-BTC ratio is once again exploring the top side of its long-term range, around 0.075 BTC per ETH. It’s most recent significant peak was just prior to <a href="https://blockworks.co/tag/ethereum-merge">the Merge</a> in September, when ETH briefly hit 0.085. The downstream <a href="https://blockworks.co/news/is-ether-deflationary-now-it-depends">effects of the Merge on ether inflation</a> have some analysts <a href="https://blockworks.co/news/the-flippening-will-ether-flip-bitcoin-in-the-next-year">expecting the ether market cap to “flip” bitcoin’s</a> in 2023.



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Bitcoin Price Hits ‘Greediest’ Point in 4 Months as It Flirts With $19K

Bitcoin’s daily trading session closed above $17,000 for the first time in almost a month on Sunday, following a favorable showing in US equities to close out last week.



The crypto, which is currently changing hands for around $17,200 per <a href="https://blockworks.co/price/btc">bitcoin</a>, has been met by a modest amount of daily trading volume on major exchanges, and an uptick in volatility — which has been at historic lows. [indicating the relief rally could be short-lived.]



Most cryptos in the top 20 have followed suit, with <a href="https://blockworks.co/price/ada">cardano</a> and <a href="https://blockworks.co/price/sol">solana</a> the largest gainers — rising more than 19% and 20% respectively over the past 24 hours. Solana saw a return of speculators last week chasing <a href="https://blockworks.co/news/bonk-solanas-own-dog-coin-sparks-joy-for-weathered-community">the latest dog-inspired meme coin</a>, BONK.



Bitcoin is now trading at levels not seen since Dec. 13 where it jumped 3.5% on the day to reach a peak of $18,373 a day later. The crypto succumbed to a large sell-off on Dec. 15, courtesy of the current bear market climate and sell-side pressure.



“Over the course of last week, we saw increased passive liquidity — as displayed by deeper order books and tightening bid/ask spreads mid-week,” Kurt Grumelart, special projects lead at trading firm Zerocap told Blockworks.



Grumelart said the outperformance in various subsectors of the crypto market was helping to drive key narratives and prop up prices. Those include liquid staking derivatives, which have experienced “substantial rallies” in anticipation of a first-quarter launch of Ethereum’s <a href="https://blockworks.co/news/ethereum-devs-opt-for-withdrawals-in-march-and-nothing-else">Shanghai upgrade that will enable withdrawals of staked ether</a>.



DeFi-related assets exhibited marginal growth alongside a jump in the industry’s overall market capitalization, which grew 3.3% on Sunday to $885 billion.&nbsp;



Sitting within the top 10 of <a href="https://messari.io/screener/defi-assets-7EE8EDB1">Messari’s DeFi assets category</a>, Curve (CRV) and Maker (MKR) have witnessed growth over a 24-hour period, up 15.7% and 9% respectively. A general shift away from centralized entities to decentralized ones, following the blowout of FTX, are helping to drive up value in the sector, Clearpool CEO Rob Alcorn told Blockworks.



“An entire generation of crypto products and protocols will be defined by their ability to survive last year’s stress tests and re-emerge as critical pieces of market infrastructure to lead a more compliant industry into the next bull market,” Alcorn said.



<h3 class="wp-block-heading">US equities and the broader markets rally ahead of bitcoin</h3>



Buoyed by speculation of easing interest rate hikes by the US Federal Reserve, traders looked to signs of <a href="https://www.bloomberg.com/news/articles/2023-01-08/asian-stocks-set-to-follow-us-after-ism-miss-jobs-markets-wrap?utm_source=google&amp;utm_medium=bd&amp;cmpId=google">cooling wage growth</a> and a contraction in services activity as a primary motivator.&nbsp;



Anticipation is now building over a tapering of the Fed’s future rate hikes from 50 basis points to around 25 basis points to be declared at the next Federal Open Market Committee meeting by month’s end.



US equities had their best daily showing in more than a month on Friday with the S&amp;P500 rising 2.3% to 3,895 while the Dow Jones Industrial was up 2.1% to 33,630. That represented the largest daily gains for US equities since Nov. 30 — 37 days ago.



So far, Asian shares have reacted positively to the favorable US moves, with Australia’s ASX index rising 0.6% to 7,153, Japan’s Nikkei 225 index also up 0.6% to 25,973, and in Europe the German DAX opening up 0.3% in the first hour of Monday trading.



Coupled with better-than-expected nonfarm payroll figures (NPF), which measures the US labor force minus farmers and some other sectors, the macro environment has led to an increased bid in risk assets like crypto, Grumelart said.



“Considering these drivers, the digital asset space is positioned to capitalize on a more favorable start to the year from a macro front,” he said. Though considerable challenges to the market, including the conclusion to the FTX debacle, will likely suppress prices in the short term.



Still hanging over the market, Damocles’ sword-style, however, is the ongoing <a href="https://blockworks.co/news/dcg-silent-gemini-genesis">uncertainty over Digital Currency Group</a>, and its subsidiaries, <a href="https://blockworks.co/news/genesis-layoffs-more-bad-news">Genesis</a> and <a href="https://blockworks.co/news/grayscale-to-fight-fir-tree-lawsuit">Grayscale</a>.



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Bitcoin Price Breaks $17K as Equities Jump on US Fed Speculation

<div id="highlights-block_62fc477e0897e" class="highlights">
 <ul>
 <li>Bitcoin etched out a two-month high on Sunday leading to higher prices across the board</li>
 <li>Favorable inflation data from the week prior has helped drive equities higher</li>
 </ul>
 
</div>



The price of bitcoin briefly touched a two-month high on Sunday amid a broader market recovery in US equities last week, mainly impacted by the Federal Reserve&#8217;s tempered raising of interest rates and favorable key inflation data.



The bellwether crypto&#8217;s price rose as much as 4% to a peak of $25,212 during an intraday trading period at the start of the week before ending the day near its opening price of around $24,300.



Bitcoin was changing hands for $24,025 at 11:30 pm ET on Tuesday, an area of former wick dip support last witnessed May 9. Most other cryptos in the top 50 by market cap are printing strong gains over a 30-day period with the seven-day view fairly mixed.



Two key inflation figures produced last week by the Bureau of Labor Statistics helped elevate equities — which have moved relatively in tandem with crypto — as investors took bets on signs of waning inflation.



The <a href="https://www.bls.gov/news.release/cpi.nr0.htm" target="_blank" rel="noreferrer noopener">consumer price index</a> (CPI) was reported as being flat month-over-month from June through to July, meaning prices for goods remain unchanged as a whole.



That, coupled with revelations the <a href="https://www.bls.gov/news.release/ppi.nr0.htm" target="_blank" rel="noreferrer noopener">producer price index</a> (PPI) fell 0.5% last month, has continued to help drive equity markets higher, with the Nasdaq now entering its fifth consecutive week of higher highs.



The US Federal Reserve — the country&#8217;s central bank tasked with tackling inflation — raised interest rates by 75 <a href="https://cms.blockworks.co/fed-raises-rates-75-basis-points-again/" target="_blank" rel="noreferrer noopener">basis points</a> (three-quarters of a percentage point) last month following a similar move in June.



<h3 class="wp-block-heading">Analyst tips bitcoin price correlation with stocks to ease</h3>



Meanwhile, the number of outstanding bitcoin futures contracts continues to rise from a July 1 low, indicating investors could be taking bullish bets on the future pricing of digital assets.



&#8220;I think it&#8217;s going higher,&#8221; Dan Weiskopf, co-portfolio manager of the Amplify Transformational Data Sharing ETF (BLOK), told Blockworks in an interview. 



Weiskopf pointed to crypto miners&#8217; financial health as being buoyed by a stable price above $15,000 to $20,000. Miners have been offloading bitcoin to stabilize their balance sheets, but that pressure has eased over the past month.



&#8220;The great part about what they did is it proved that liquidity exists for bitcoin,&#8221; he said.



While the public miners are still dumping their bitcoin holdings, there is evidence that selling pressure from mined bitcoin is slowing from a peak in April of more than 33,772 BTC, according to <a href="https://arcane.no/research/the-selling-pressure-from-the-public-bitcoin-miners-is-easing" target="_blank" rel="noreferrer noopener">Arcane Research</a>. 



&#8220;Until April, the miners [held] between 60% and 80% of their mined BTC, but for the last three months, they have sold more than 100% of production,&#8221; Arcane&#8217;s Aran Mellerud said in a blog post on Sunday.



That could be good for bitcoin in the mid-term, as price discovery realigns with more typical patterns of trading activity from retail and institutional investors.



Though to some, including Toby Chapple, head of trading from Australian trading firm Zerocap, the weight of institutional investment in crypto could overshadow the supply and demand relationship dictated by miners.



With 90% of bitcoin mined, the Ethereum merge absorbing the supply side for tokens amid <a href="https://cms.blockworks.co/blackrock-launches-spot-bitcoin-private-trust/" target="_blank" rel="noreferrer noopener">positive news developments</a> and other demand from larger players, the correlation to stocks looks less likely in six months&#8217; time Chapple added.



&#8220;All this institutional flow is coming from the demand side buying pressure,&#8221; Chapple said. &#8220;With supply constraints on the sell side, it means the imbalance long-term is biased to the topside.&#8221;



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Bitcoin Price ‘Biased to the Topside’ as it Skims $24K, Analyst Says

<div id="highlights-block_6217134ec1f94" class="highlights">
 <ul>
 <li>Putin warns other countries: Meddling with Russian affairs will lead to &#8220;consequences they have never seen&#8221;</li>
 <li>While crypto and stocks drop, gold is up 2.6% on the day and WTI Crude Oil is up 7.3%, trading at $99 a barrel</li>
 </ul>
 
</div>



The price of the world&#8217;s largest cryptocurrency by market value fell beneath the $35,000 psychological support line late Wednesday evening amid Russian President Vladimir Putin&#8217;s calls for a military campaign inside Ukraine.



Bitcoin fell almost 9% over a 24-hour period, according to <a href="https://cms.blockworks.co/prices/" target="_blank" rel="noreferrer noopener">Blockworks</a>. Many leading digital assets are trading at their lowest levels since Jan. 24.



Putin, appearing on live television at around 10:00 pm ET, said he had ordered the Russian military to move in on Ukraine&#8217;s Donbas region. Reporters in the&nbsp;Ukrainian&nbsp;capital, Kyiv, and the Black Sea port city of Odessa also <a href="https://www.abc.net.au/news/2022-02-24/vladimir-putin-launches-invasion-of-ukraine/100857650" target="_blank" rel="noreferrer noopener">observed explosions</a>.



Russia declared Wednesday the Ukrainian territories of Donetsk and Luhansk of the Donbas region as independent amid strong condemnation from Western powers. Putin said the decision to move into those areas comes as a response to threats posed by Ukraine.



The Russian president warned other countries that any attempt to meddle with Russia&#8217;s affairs would lead to &#8220;consequences they have never seen,&#8221; ABC News reported.



Shortly before Putin began his address, bitcoin&#8217;s price began to tumble below $36,600 and continued falling to a low of $34,322, exchange data shows. A flood of seller volume on the hourly chart can be seen tracking its descent, with little resistance coming from bitcoin buy action.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="835" height="565" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/02/Screenshot-2022-02-24-at-11.11.03.png" alt="Bitcoin chart" class="wp-image-17879" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/02/Screenshot-2022-02-24-at-11.11.03.png?w=835 835w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/Screenshot-2022-02-24-at-11.11.03.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/Screenshot-2022-02-24-at-11.11.03.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/Screenshot-2022-02-24-at-11.11.03.png?w=380 380w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/Screenshot-2022-02-24-at-11.11.03.png?w=386 386w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/Screenshot-2022-02-24-at-11.11.03.png?w=324 324w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/Screenshot-2022-02-24-at-11.11.03.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/02/Screenshot-2022-02-24-at-11.11.03.png?w=50 50w" sizes="(max-width: 835px) 100vw, 835px" /><figcaption>Putin&#8217;s remarks came at 10:00 pm ET or 3:00 UTC.</figcaption></figure>



Earlier on Wednesday, Pentagon spokesperson John Kirby&nbsp;<a href="https://www.youtube.com/watch?v=CGJFRcYhFXk" target="_blank" rel="noreferrer noopener">said</a>&nbsp;Russian forces were continuing to amass along Ukraine&#8217;s borders and were putting themselves &#8220;in an <a href="https://cms.blockworks.co/market-wrap-s-and-p-drops-to-lowest-since-june-2021-while-crypto-extends-losses/" target="_blank" rel="noreferrer noopener">advanced stage</a> of readiness to act and to conduct military action.&#8221;



A sell-off among stocks and crypto was seen Wednesday, extending the trend in lower prices as the S&amp;P 500 and Nasdaq closed -1.84% and -2.6% respectively.



Ukraine&#8217;s foreign affairs minister tweeted Thursday that Putin had launched a &#8220;full-scale&#8221; invasion against his country and that cities within the region were &#8220;under strikes.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Putin has just launched a full-scale invasion of Ukraine. Peaceful Ukrainian cities are under strikes. This is a war of aggression. Ukraine will defend itself and will win. The world can and must stop Putin. The time to act is now.&mdash; Dmytro Kuleba (@DmytroKuleba) <a href="https://twitter.com/DmytroKuleba/status/1496695889401896964?ref_src=twsrc%5Etfw">February 24, 2022</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Investors have continued to closely monitor developments in Ukraine, with both traditional and digital asset markets responding sharply. Eyes are now fixed on the US and its allies, awaiting their response to the mounting crisis.



Gold continues to hold water and is up 2.6% on the day — above $1,950 per troy ounce — while WTI Crude Oil is up 7.3% and trading at $99 a barrel. Meanwhile, crypto assets are floating around in a sea of red with Cardano, Avalanche, Polygon and Dogecoin taking the hardest hits in the top 20 by market value, down between -15% and -17% on the day.



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Bitcoin Slides Below $35K Amid Putin’s Call for ‘Full-Scale Invasion’ of Ukraine

<div id="highlights-block_61ee32c53b70c" class="highlights">
 <ul>
 <li>Bitcoin is trading around the $35,000 mark and is down 18% over the course of a week </li>
 <li>Tensions mounting on the Ukraine border, inflation concerns and rising interest rates are adding fuel to macro market conditions</li>
 </ul>
 
</div>



Bitcoin&#8217;s price continues to falter following hundreds of millions of dollars in <a href="https://cms.blockworks.co/750m-longs-liquidated-in-thursday-sell-off-alongside-us-equities/" target="_blank" rel="noreferrer noopener">liquidations</a> on Thursday.



The world&#8217;s largest crypto by market value is currently changing hands for around $35,076, according to data by provider CoinGecko. <a href="https://www.coingecko.com/en" target="_blank" rel="noreferrer noopener">Data also shows</a> the crypto is down more than 18% over a seven-day period, its worst weekly showing in almost eight months.



&#8220;We are seeing a trifecta of forces coming into the new week,&#8221; Jon de Wet, CIO at Australian crypto trading firm Zerocap.



<blockquote class="wp-block-quote">Tensions are rising on the Ukraine border, inflation concerns are finally being taken seriously by the market, and in response, the tapering and [interest rate] hiking cycle is being priced in aggressively, with risk assets being dumped.</blockquote>



The Nasdaq 100 ended Friday down about -2.4% and has fallen 9% over the past seven days of trading. The index is now approaching its early-October lows of around 14,400. Meanwhile, tech stocks including Apple and Google were also down by around 2.2%.



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="571" src="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bitcoin1-1024x571.png" alt="" class="wp-image-15937" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bitcoin1-1024x571.png?w=1024 1024w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bitcoin1-1024x571.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bitcoin1-1024x571.png?w=768 768w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bitcoin1-1024x571.png?w=1536 1536w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bitcoin1-1024x571.png?w=2048 2048w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bitcoin1-1024x571.png?w=428 428w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bitcoin1-1024x571.png?w=468 468w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bitcoin1-1024x571.png?w=389 389w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bitcoin1-1024x571.png?w=80 80w, https://blockworks-co.imgix.net/wp-content/uploads/2022/01/bitcoin1-1024x571.png?w=50 50w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption>BTC/USDT &#8211; Bitstamp. Credit: Tradingview</figcaption></figure>



Daily volume on the sell-side for the Bitstamp exchange shows downside momentum also coincided with bitcoin&#8217;s recent sell-offs seen Jan. 19-Jan. 22. A drop in an asset&#8217;s price on the daily time frame, alongside growing seller volume, is generally considered a bearish signal in market technician terms.



Bitcoin&#8217;s daily chart shows a sharp decline in prices — buying pressure has failed to push prices above the sloping trendline — as well as a break of the previous support near $39,000.



With all of that said, crypto on-chain data is bullish, said de Wet. He noted long-term holders were &#8220;aggressively&#8221; buying the dip.



&#8220;The net position change on exchanges for BTC is negative — which means investors are pulling BTC from exchanges, creating supply constraints, said de Wet. &#8220;Perpetual Funding rates are bouncing between negative and positive — showing indecision from shorter-term traders.&#8221;



Other cryptos in the top 10 by market value were also down on the day with LUNA, DOT and SOL giving up the most gains between 1.8% to 10% respectively.




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