ZINGER KEY POINTS
- Bitcoin, Ethereum advance, while Dogecoin declines at press time
- OANDA analyst says crypto winter may not yet be over
- Market intelligence platform says influx of shorts into market could lead to a squeeze on such 'bets'
Bitcoin and Ethereum traded in the green early Monday morning as the global cryptocurrency market cap rose 0.8% to $1.02 trillion.
Volatility among risk assets comes ahead of anticipated comments from U.S.Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium, which is slated for Aug. 25.
OANDA senior market analyst Craig Erlam said in a recent note, seen by Benzinga, that the next key test for Bitcoin could be the $20,000 level. He said, “The crypto winter may not be over yet.”
Santiment said that markets rebounded Monday after Bitcoin and Ethereum fell below $20,900 and $1,540, respectively, on Sunday. The market intelligence platform said exchanges are witnessing “high levels of [short] trades] coming in as “people fear drops to June levels again. As long as they bet against markets, there is a higher chance of a rise.”
Cryptocurrency trader Michaël van de Poppe said the total market capitalization for cryptocurrencies still looks the same. He said it was holding the 200-week moving average for support implying “continuation is still likely, and the bottom is in or close.”
Justin Bennett pointed out that cryptocurrencies have fallen more sharply in relation to the S&P 500.
“At this rate, [stocks] do NOT need to make new lows for [BTC] to make new lows,” tweeted the cryptocurrency trader.
Bennett said that a fall of even 7% from the S&P 500 could translate into a 40% drop for Bitcoin.
Going forward into the fresh trading week, Alternative.me’s “Crypto Fear & Greed Index” flashed “Fear," just as it did last week.