Here’s how altcoin futures volumes and the USD lending rate signal market crashes

Every once in a while, a new indicator pops out that can be used to detect price tops and bottoms in the market. This assertion is even more evident in cryptocurrencies because the data comes from exchanges and on-chain data extracted from the blockchain. These indicators are constantly monitored and commented on by analysts and traders. Some of the lesser-known metrics use data from altcoin derivatives volumes and the Bitfinex U.S. dollar lending rate. Altcoin volumes in futures markets indicate overheat The futures contract volume is usually triple that of,…

Here’s one way to trade Bitcoin even as BTC price teeters over an abyss

In the last 29 days, Bitcoin (BTC) has been ranging from $31,000 to $36,000 as the impact of the recent China ban and a $1.4 billion Grayscale GBTC share unlocking continue to pressure markets. China’s government implemented a series of measures to curb cryptocurrency mining and trading by ordering the immediate shut down of some operations and instructing domestic banks to suspend the bank accounts of entities involved in the industry. Meanwhile, the $21 billion trust fund Grayscale and its GBTC security is facing a troublesome period as institutional investors’…

Here’s 2 ways clever pro traders spot crypto and stock price reversals

Trading in the direction of the trend is one of the best ways to be profitable. If traders learn to spot a new trend early, it provides an opportunity to buy with a good risk to reward ratio. In addition to identifying a trend, traders should also be able to recognize when it has reversed direction. While several patterns signal a possible trend change, one of the easiest to spot is the double bottom pattern. This can help traders change their strategy when the trend reverses direction from bearish to…

Bitcoin price is down, but here’s 3 reasons why $1B liquidations are less frequent

Bitcoin (BTC) might be struggling to break the $36,000 resistance for the past three weeks, but bulls now have one less thing to worry about: cascading futures contracts liquidations. One might be under the impression that a $1 billion liquidation is usual for Bitcoin. Still, traders tend to remember the most recent exaggerated movements more than any other price shifts, especially when the price crashes and people lose money. This negativity bias means that even when various price impacts with equal intensity occur, the unpleasant emotions and events have a…

Bullish on Ethereum’s London hard fork? Here’s an options strategy pro traders use

The Ethereum network will undergo a major upgrade on Aug. 4, as the long-awaited London hard fork is expected to launch at block 12,965,000. The transition is part of a roadmap leading to the Ethereum 2.0 release, which aims to migrate the network to a proof-of-stake consensus mechanism. By no longer depending on the intense energy-consumption mining, the main goal is to drastically increase the network’s capacity by using parallel processing, also known as sharding. The upcoming London upgrade will implement the critical Ethereum Improvement Proposal EIP-1559, making Ether (ETH)…

Here’s why pro traders expect further downside from Ethereum price

Derivatives data shows that Ether (ETH) traders are feeling less bullish when compared to Bitcoin (BTC). Even though the altcoin captured a nearly 200% gain in the first half of 2021 versus Bitcoin’s modest 22% price increase, traders seem to be more affected by Ether’s recent underperformance. Institutional flow also backs the decreased optimism seen in Ether derivatives, as ETH investment vehicles suffered record outflows this past week while Bitcoin flows began to stabilize. According to data from CoinShares, Ether funds experienced a record outflow of $50 million this past…

Here’s The Level Bitcoin Bulls Must Reclaim For Setup To $49K

Bitcoin recently had a crash below $30k this week. For the first time since January 2021. $30k had been the stronghold for the coin for a long time since bitcoin began its descent down for its $64k all-time high. A good holding point to make sure that bitcoin does not crash into a bear market. But when the coin finally broke it and went below $30k, all bets were off. Or so it seemed. Within a couple of hours, the coin had bounced back. Trading at above $32k in just…

Bitcoin Prints Bullish Pattern, Here’s Why 100 SMA Holds The Key

Bitcoin price dived below $30,000 before it started a major recovery against the US Dollar. BTC is back above $32,000, but it must clear the 100 hourly SMA for more gains. Bitcoin extended its decline below the $30,000 support zone before it started an upside correction. The price is now trading close to the $34,000 zone and the 100 hourly simple moving average. There is a major bearish trend line forming with resistance near $35,000 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair must…

Ethereum Breaks $2K, Here’s What Could Spark A Decent Recovery

Ethereum extended its decline and it even broke the $2,000 support against the US Dollar. ETH price is now recovering and it might correct higher towards $2,150. Ethereum extended its decline below the $2,050 and $2,000 support levels. The price is now trading well below $2,200 and the 100 hourly simple moving average. There was a break above a short-term declining channel with resistance near $1,950 on the hourly chart of ETH/USD (data feed via Kraken). The pair could recover above the $2,000 level, but the bears might protect the…

Bitcoin Eyes Recovery, Here’s Why BTC Could Struggle Near $35K

Bitcoin price extended its decline and tested the $31,500 zone against the US Dollar. BTC is now recovering losses, but it is likely to face sellers near $34,000 and $35,000. Bitcoin remained in a bearish zone and it even broke the $32,000 support zone. The price is now trading well below $35,000 and the 100 hourly simple moving average. There is a key bearish trend line forming with resistance near $35,100 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to correct higher,…