Overall exchange activity of Bitcoin and Ethereum surges, analysts expect higher volatility in the two assets over the weekend.
Analysts have noted massive volatility in Bitcoin and Ethereum prices in the past 24 hours. There is a notable spike in Bitcoin exchange inflow, nearly 3700 Bitcoins hit exchanges, and net exchange flow is positive. The influx is the largest since June 2019, and analysts had anticipated a spike in volatility in response to increased Bitcoin reserves on exchanges.
This implies that traders have transferred Bitcoin to exchange wallets for profit-taking, ahead of the expiry of $1.8 billion BTC options.
#Bitcoin just made history with its largest day of exchange inflow since June 19, 2019. These days are now tied for the largest inflow day of all-time, both with 1.68M $BTC flowing to exchanges on these respective days. Expect increased volatility. https://t.co/yzOHzqlrKW pic.twitter.com/dT3JbyDD2m
Bitcoin in whale wallets or addresses holding 100 to 10,000 Bitcoins is back in circulation as it hits exchanges and smaller wallets are accumulating. This may emerge as an unfavorable situation that leans towards an overall bearish outlook, based on Delphi Digital's latest report titled "Tether Grows, Whales Dump, and ETH Hash Rate at ATHs."
An altcoin analyst behind the Twitter handle @AltcoinSherpa has admitted to profit-taking in Ethereum and stated that he would resume buying in December.
$ETH: This is my $ETHBTC chart and how I plan on playing these seasons. I think we still may have another few weeks of good times for #Altcoins but I'm playing it safe and taking profits around here and a bit higher. I'm selling into $BTC and will buy in Nov/Dec. #Ethereum pic.twitter.com/7hFo8VgYeJ
In the case of Bitcoin, traders are anticipating a pullback. Bitcoin options are expiring on the Deribit exchange on the last Friday of the month. $1.8 worth of calls are placed to short or sell Bitcoin at $50,000.
If Bitcoin continues trading above $50,000, these traders will suffer losses when their positions are closed.
FXStreet analysts have predicted that Bitcoin is likely to form a bull trap, lure traders into long positions ahead of the crash to $40,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Solana price is looking top-heavy as it hovers below the $38.2 hurdle. Solend, a lending/borrowing platform voted to take control of a whale’s account to prevent a cascade of liquidation. Rejection at $38.22 and the fallout from this fiasco could trigger SOL to crash to $25.
Terra showed restraint and stayed above $1.69 even as BTC crashed below $18,000. LUNA price has been trading below the larger range since its breakdown on June 8. However, the recent surge in bullish momentum could push Terra up to retest the said level.
Polkadot price could print one more decline into $4. Bitcoin, however, shows bullish evidence; thus, a pullback scenario is likely. Polkadot price shows signals of a temporary bottom.
Ethereum price lures the everyday investor to implement a dollar-cost average investing strategy. The invalidation level for Ethereum price, however, is still wide and less favorable than Bitcoins'.
Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.