The sideways market continues this week as Bitcoin and Ethereum hold support at the $21k and $1.6k levels. The trading volume remains unchanged, and the global crypto market remains above $1 trillion, signaling a healthy sentiment.
- Sideways trading continues as the global crypto market, and trading volume remains unchanged.
- Mt. Gox creditors are nearing payout, which could create significant bearish momentum for BTC markets.
- Market sentiment is neutral/bearish, and Bitcoin could drop below $20k in the next week.
- The fear/greed index is at a monthly high, suggesting another correction may be coming.
- The underperformance of stock markets and the potential upcoming monetary action from the Fed are causing uncertainty and fear in global and crypto markets.
There is quite a bit of uncertainty in the markets, even with flat prices. According to a report from the Wall Street Journal, Mt. Gox creditors are nearing payout, which could spark fears of a Bitcoin price crash resulting from users dumping their coins on the exchange.
It only took eight years for the creditors to get part of their funds back, and since then, the price of Bitcoin has increased by over 3,500%. Once the creditors receive their Bitcoins, the influx of selling pressure will cause substantial bearish momentum for markets, possibly causing further correction with Bitcoin price dipping below the $20k range.
The bears are making their presence known, with a report from Cointelegraph suggesting that Bitcoin and other digital assets are at risk of another 20% drop to additional yearly lows.
The current sentiment for the market is bearish/neutral, and one indicator which could turn the tide into a downtrend is if the global cryptocurrency market cap dips below the $1 trillion level. The market remains above $1 trillion enabling BTC and ETH to hold current support levels.
However, looking at alternative.me’s crypto fear and greed index, the indicator is at 25 points, suggesting extreme fear in the markets.
The current fear level is the highest it’s been since July 18th, suggesting that the market could be preparing for another drop this weekend.
In addition, the underperformance of stocks and the potential upcoming interest hikes have investors waiting on the sidelines for the next move.
All signs point to the markets either continuing to trade sideways or for another correction next week. The upcoming correction could send BTC prices below $20k and Ethereum below $1,400, making for an excellent buy opportunity for those looking to open positions for the long term and lowering their dollar-cost average on crypto assets.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!