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It looks like a furious battle between bulls on one side and bears on the other hope indicator for the cryptocurrency market. In June, when bitcoin traded below mining and TVL costs for DeFi platforms fell 33%, things could get better.
So the market could recover, as the signs of the past few weeks show. Everything suggests that the general mood is gradually changing and becoming one. I will still believe for most investors.
Eternal fight between bulls and bears
Even in June, the cryptocurrency market was in one down the slope Some elements tend to show positive reinforcement, which may increase over the next few weeks. The observation is particularly evident in relation to bitcoin or ethereum, which have recovered in recent days, mainly thanks to futures, which are once again showing positive returns.
This, of course, indicates a positive attitude among investors who specialize in this. derivative products. Although the June trend was more bearish and investors were more inclined to sell than to buy, it is entirely possible that the bulls will reassert themselves very soon.
But in June The situation was not brilliant with bitcoin trading at a lower price than its mining costs, a 33% TVL loss to DeFi, or even -42.7% monthly returns on crypto assets.
As a result, we have seen and continue to see in recent weeks eternal struggle on the one hand, those who support the market are ready to buy and believe in growth: bulls; and on the other hand bears, those investors who prefer to sell their assets in a delicate and uncertain context.
Derivatives (futures) can be a key indicator
By June, the common cryptocurrency market strong bearish sentiment after various events such as the sinking of Earth, a record collapse of bitcoin or major events such as the war in Ukraine that affected the entire economy.
Therefore, the indicator of bearish and bullish market sentiment market volatility asymmetry. The wider the volatility range, the greater the volatility of the market and vice versa, when it is tight, the volatility is lower: this leads to greater confidence on the part of investors and traders.
Indeed, a volatile market is relatively bad because it is creates uncertainty on the value of assets, which can double or dissolve in short periods of time. Therefore, the general trend is to sell, which leads to even greater volatility.
As a result, as of June 18, Bitcoin futures had a delta-25 of 36%, which is an all-time high. After this peak, general optimism returned and this figure dropped to 17%. This is a strong signal that the cryptocurrency market will do just that. will stand up in the coming months.
For a bright future?
That the positions of Bitcoin and Ethereum are held over the long term proves it Traders want to be optimistic at the end of the year. Consequently, there is a risk that this positively affects the price of these two cryptocurrencies.
On the other hand, there is always uncertainty, especially regarding liquidity problems in front of multiple platforms. There have recently been rumors that Coinbase could face such a situation, although CEO Brian Armstrong is confident in the future of the platform.
Coinbase has grown significantly in 2021 and we are still adapting to this growth. One of the crazy things about our industry is that we can grow 300-500% or -50% every year. This makes it incredibly difficult to plan and culturally embrace so many people during peak hours.
– Brian Armstrong – barmstrong.eth (@brian_armstrong) July 12, 2022
Obviously, these solvency problems lead to Failure of several platforms they do not help the cryptocurrency industry, they undermine investor confidence and the growth of this environment.
However, if traders want to be safe and be able to profit from Bitcoin and Ethereum options, then positive influence long-term for these assets, but also globally for the entire market.
Can positive sentiment convince bears?
Bitcoin was sold below the mining price for the first time since March 2020. As a result Marco Markets and also releases some BTC.
However, the unrealized gain and loss indicator is further proof that bulls can be winners in such a market and thus can convince bearish investors, leading to an overall positive trend. the heritage starts to grow again.
Over the past few weeks, the bulls have pushed the market higher and bitcoin is back above $ 20,000. The resource has even come close its support of $ 25,000 reaches $ 24,135. Likewise, Ethereum’s long-awaited update The Merge has brought this cryptocurrency to $ 1,650.
While the market is slightly down again, especially after Musk’s announcement that his company is selling all of its bitcoins, overall the last few weeks of July were much better than all of June. What Investors want to believe and in general this is expressed in a positive mood, which increases the value of these assets, despite the current context.
We must continue to be vigilant and pay attention to the various elements that could determine this. bitcoin price in the coming days and weeks. Of course, good or bad can significantly affect this resource at any time.