The sudden rise in the US inflation rate has affected the cryptocurrency market. After the price of Bitcoin was hit, investors are now looking for a possible bottom. If the market can sustain its current decline, that could be a buying opportunity.
“Underwater” Supply Short of the Bottom Zone
Data from Santiment’s behavior study shows that as of September 14, despite the recent price adjustment, investor interest in purchasing Bitcoin was still lower than it was throughout the asset’s period of growing value. The overall social volume evaluated is 94,862, with the phrases’ purchase,’ ‘purchasing,’ or ‘bought’ accounting for only 5.06% at 4,799.
“After yesterday’s big drop, crypto traders are showing signs of being numb to sudden drops from inflation-related scares. The amount of interest in buying is notably small now compared to when prices rose three days ago, indicative of FUD,”
Despite the various technical indicators indicating that Bitcoin’s market behavior is improving, a leading crypto analyst argued that the digital asset price still has a long way to go. In a Twitter thread on September 14, Willy Woo, a statistician, explained three reasons why the price of Bitcoin should still be in a bear market.
Despite the various technical indicators indicating that Bitcoin’s market behavior is improving, a leading crypto analyst argued that the digital asset price still has a long way to go. Although many believe that the digital currency’s recent price peak is a new macro bottom, Woo noted that the price could still test the lower levels of the range.
One of the main indicators Woo uses to determine the price of Bitcoin is the percentage of the supply currently held at a loss. During previous bear markets, the number of underwater coins was also significant.
According to a chart by Glassnode, an on-chain analytics firm, the percentage of supply currently at a loss is 52%, and to reach the 60% mark, Bitcoin would need to drop to around $9,600. During the previous bear markets, the supply at a loss was so high that it pierced a long-term trend line. This time around, however, it’s not possible to predict exactly what will happen to Bitcoin.
Ravencoin (RVN) Records 90% Increase
According to Coinmarketcap, a significant increase in the RVN over the past month has been attributed to the general market sentiment. The rally in the cryptocurrency is also related to the upcoming Ethereum merge.
Currently, Ravencoin is trading at $0.073, which is 95% and 17% higher than its previous trading levels. In the past two weeks, the cryptocurrency has experienced a massive increase in its value. It has gained 150% and 95% in the period above.
According to data from Material Indicators, the price of Ravencoin has been supported by the bid orders placed by investors. These investors have placed orders worth around $2,000 and $100,000, respectively. They need to continue supporting the price to maintain its bullish momentum.
Logically, cryptocurrencies such as Ravencoin would gain popularity if Ethereum goes through with its planned PoS consensus. However, it will be very competitive due to the various candidates expected to emerge once the consensus is implemented.
$6 Level Posing Hurdles To NEAR Price
In the coming weeks, the $6 level will likely be the next hurdle to the downside. On the other hand, the $4.7 area is a critical support level that has been in place since June and July.
Although the near-term technical indicators pointed to a bullish outlook, August was not kind to NEAR protocol, as it experienced a price crash and a reversal. Its Relative Strength Index (RSI) has also moved above the neutral 50 zones. Despite the positive movement, the OBV remained sluggish.
If the OBV can break through its August high, the demand for the NEAR protocol will increase. The Chaikin Money Flow also shows that the company’s capital has increased significantly.