By Franklin Smith
The crypto industry’s infamous fluctuating volatility continues to witness varying fortunes monthly.
The marketplace seems to have seen everything, from investors selling at losses to placing bets against market cues (hopping for price upticks). However, what’s happening this time?
Hold Tight
Bitcoin maintained declines since hitting its $69K all-time high in Nov 2021. Moreover, altcoins suffered from the overall market crash. ETH lost 11.46%, while Bitcoin dropped 9.29%.
Also, cryptocurrency liquidation hit 673 million 48 hours ago. However, Santiment trusts the marketplace has a notable thing for investors.
Crypto exchanges recorded increased short trades after the market revival. That came as market players feared another decline towards June levels.
Moreover, traders have betted against the marketplace as prices revealed signs of life. The average finding rate metric supported this tale. The negative reading shows perpetual prices dripped under the marked value.
The sudden funding rate shift confirmed sentiment turn to fear from greed. That signaled a possible bottom for the marketplace
Meanwhile, taking advantage of this bearish narrative to bet against broad market cues remained logical for traders. Santiment trusts betting against the space translates to upsurge chances.
Not a Pessimistic Sign After All
CryptoQuant’s CEO Ki-Young Ju also revealed low funding rates might mean a buy sign (historically). He added that it might not be a lucrative impression to wait for corrections when institutions are purchasing BTC.
Furthermore, trading against the market amid a bullish setting might help investors purchase digital coins at discounted prices. Moreover, NULP (Net Unrealized Profit & Loss) indicator hiked to turn positive.
Generally, considering the weighted funding rate (average), one might conclude that near-term holders congested the space, translating to possible rebounds.
Furthermore, ETH and BTC presented minor upticks on Coinmarketcap during this publication. However, the upsides weren’t substantial to help the tokens outshine their short-term resistance zone (s).
The crypto market remained downbeat during this publication, despite slight upticks within the past day. While publishing this post, the global cryptocurrency market capitalization hovered at $1.03 trillion, gaining 0.01% within the past 24 hours. Upcoming trends remain unclear, but time will reveal.
Stay tuned for upcoming crypto news.