ADVERTISEMENT

[email protected]

  • Submit Press Release
  • Submit Guest Post
  • Write for Kryptomoney.com
Latest Crypto News
  • News
    • Bitcoin News
    • Blockchain News
    • Cryptocurrency News
    • Ethereum News
    • Exchanges News
    • Regulations News
  • Price Analysis
    • Bitcoin (BTC) Analysis
    • Ether (ETH) Analysis
    • Ripple (XRP) Analysis
    • Litecoin (LTC) Analysis
    • Bitcoin Cash (BCH) Analysis
    • Binance Coin (BNB) Analysis
  • Industry
    • Events
    • Press Release
  • Start Here
  • Advertise
No Result
View All Result
  • News
    • Bitcoin News
    • Blockchain News
    • Cryptocurrency News
    • Ethereum News
    • Exchanges News
    • Regulations News
  • Price Analysis
    • Bitcoin (BTC) Analysis
    • Ether (ETH) Analysis
    • Ripple (XRP) Analysis
    • Litecoin (LTC) Analysis
    • Bitcoin Cash (BCH) Analysis
    • Binance Coin (BNB) Analysis
  • Industry
    • Events
    • Press Release
  • Start Here
  • Advertise
No Result
View All Result
Latest Crypto News
No Result
View All Result
Home News

This Is How Traders and Analysts Reacted to Bitcoin (BTC), Ethereum (ETH) Selloffs, On-Chain Data Reveals This Scoop

Bitcoin’s Selloff Could Have Been Amplified by the Substantial Decline in the Price of ETH

Tomiwabold Olajide by Tomiwabold Olajide
September 5, 2020
in News
0
BTC
0
SHARES
1000
VIEWS
Share on FacebookShare on Twitter

In the last three sessions, major cryptocurrencies Bitcoin (BTC) and Ethereum (ETH) saw a huge decline below $11,000 and $400 respectively against the US Dollar.

Bitcoin (BTC) traded beneath sub-$10,000 across major exchanges again on September 5, marking two consecutive days of testing the crucial level. ETH price is down over 15% as it cascaded down, breaking the $420 and $400 support levels.

A school of thought believes Bitcoin’s selloff could have been amplified by the substantial decline in the price of ETH. Ether front-ran Bitcoin rally since early April and the weakness in ETH could have intensified the short-term drop of BTC.

However, Bitcoin’s CME chart still shows an open gap between $9,600 and $9,900. If the price of Bitcoin shows weakness through the weekend, a potential new CME gap can be formed.

ETH/USD Daily Chart

Bitcoin, the first cryptocurrency by market cap is presently trading at $9,900 down by 5.18% while Ethereum (ETH), the second-largest crypto asset is trading at $330, down by 15%

How Traders and Analysts Reacted to the Selloffs

There was a dramatic shift in market sentiment from extreme greed to fear, and with the March 13 market carnage still fresh in mind, this recent crash must have left the market wondering how bad things could get. On this subject, a variant of thoughts was reflected.

Bitcoin investor, Raoul Pal recently stated in a tweet that Bitcoin’s correction is on course and subsequently ‘healthy’. He calls the recent dips ‘buying opportunity’.

Jason Snipe of Odyssey Capital Advisors who was among a team of analysts that stated their views on CNBC regarding the crypto market selloff said this:

“I look at this summer, which is historically great, particularly last month which was the best August in decades. I think it’s a little bit of rebalancing, I think it’s a little bit of profit-taking. I know September is historically a slow month, there won’t be a lot of news coming and also preparing for the election,” Snipe said.

This may seem to correlate with Raoul Pal’s view. He however pointed out that the upcoming US election remains a major risk ahead. Another analyst noted that BTC is extremely oversold as per the Relative Strength Index saying:

“Alright, stopped out on both $BTC & $ETH trades (of course). I think this is just one of those times when I have to admit defeat. By the way: the RSI hasn’t been this oversold since the black swan crash. Crazy stuff.”

On-Chain Data Reveals This Scoop

On-chain data indicated that the recent BTC decline was caused by intense selling pressure from short-term investors who bought between the upper-$11,000 regions and the lower-$12,000 regions. Data from Whalemap reveals a trend among this group of traders who seem to be employing the “buy high sell low” strategy.

Courtesy: Glassnode

Analytics platform Glassnode indicates that BTC’s long-term investors were not bothered by this recent decline. Glassnode’s Coin Days Destroyed indicator revealed that long-held BTC was not moved throughout this massive selloff.

“Coin Days Destroyed (CDD) is an indicator for movements of large & old stashes of BTC. Currently, it is showing no signs of long-term investors cashing out. In fact, CDD is less than half compared to last year when Bitcoin was at the same price level.”

For Ethereum, the amount of ETH locked in decentralized finance (DeFi) suggests a medium-term bullish trend. Ryan Sean Adams of Mythos Capital said new entrants into DeFi space could further buoy ETH.

Image Credit: Glassnode, Shutterstock

Tags: Bitcoin (BTC)BTC/USDDecentralized finance (DeFi)ETH/USDEthereum (ETH)Raoul Pal
Previous Post

BCH Price Analysis: BCH/USD off the Highs As Price Holds Under $230 on Anticipated Bitcoin Cash (BCH) 3rd Fork in Four Years

Next Post

Bitcoin Critic, Peter Schiff Finally Admits He Was Wrong on BTC, Sushiswap ‘Acquisition’ Drama Unfolds

Next Post
Bitcoin

Bitcoin Critic, Peter Schiff Finally Admits He Was Wrong on BTC, Sushiswap ‘Acquisition’ Drama Unfolds

Recent Stories

Quickly

Financial Advisor Introduces Petition for the UK Government to Ban Crypto Transactions

January 15, 2021
LTC Price Analysis: Steep Correction on LTC/USD From $186 High, Flare Networks Announces Litecoin Airdrop

LTC Price Analysis: Steep Correction on LTC/USD From $186 High, Flare Networks Announces Litecoin Airdrop

January 15, 2021
Bitcoin

Bitcoin Falls Below $35k Despite the Unveiling of Biden’s $1.9 Trillion Stimulus

January 15, 2021
cryptocurrencies

The Impact Of Cryptocurrencies On The Global Marketplace

January 15, 2021
What Will 2021 Hold for Bitcoin and Crypto? BTC Price Prediction and Events To Watch Out for by Mid-2021

What Will 2021 Hold for Bitcoin and Crypto? BTC Price Prediction and Events To Watch Out for by Mid-2021

January 14, 2021
Trading

PayPal Crypto Trading Volume Climbed $242 In One Day

January 14, 2021
Bitcoin

Government of Pakistani Province Announces Launch of Bitcoin Mining Farms

January 14, 2021
Ethereum

Google Data Reveals “Ethereum” Searches Hit All-Time High

January 14, 2021
BTC/USD

BTC Price Analysis: In a Return Rally BTC/USD Grinds Past $40,000 Amid Grayscale Bitcoin Purchase of $80M

January 14, 2021
Wunderbit Trading

Wunderbit Trading – Copy Trading Platform That Suits All 

January 14, 2021

Email Subscription

Pages

About Us

Contact Us

Disclaimer

Get Latest Cryptocurrency And Bitcoin News

Privacy Policy

Write for Kryptomoney.com

Category

Events

General

Interviews

News

Price Analysis

Press Release

Sponsored

Information

About Us

Submit Press Release

Submit Guest Post

Contact Us

Social Icons

[email protected]

©KryptoMoney 2019 | Southridge Internet Corp

No Result
View All Result
  • Resource List
  • News
  • Price Analysis
  • Events
  • Press Release
  • Sponsored

©KryptoMoney 2019 | Ess Commerce Private Limited

  • bitcoinBitcoin (BTC) $ 36,171.00 6.91%
  • ethereumEthereum (ETH) $ 1,158.12 2.69%
  • tetherTether (USDT) $ 1.00 0.23%
  • bitcoin-cashBitcoin Cash (BCH) $ 482.92 5.54%
  • binancecoinBinance Coin (BNB) $ 40.80 0.17%
Our websites require cookies enabled to provide you with an uninterrupted experience. Please continue without changing your setting to receive important notifications.I Agree