Three key indicators suggest that bitcoin and the cryptocurrency market in general still have room for improvement

Three key indicators suggest that bitcoin and the cryptocurrency market in general still have room for improvement

The total capitalization of the cryptocurrency market has changed within a range of 17% in the $ 840 billion zone to $ 980 billion over the last 28 days. The price movement is relatively tight in the face of the recent uncertainty of market sales catalysts and the controversy surrounding Three Arrows Capital.

Total capitalization of the cryptocurrency market, in billions of USD. Source: Trade View

From July 4-11, bitcoin (BTC) gained a modest 1.8% and the price of ether (ETH) was steady. More importantly, the entire cryptocurrency market is down 50% in just three months. This means that traders are giving the formation of a descending triangle more likely to break below its $ 840 billion support.

# Bitcoin Bottom Case: Since #BTC started to decline from its high, $ BTC has grown in the same declining triangle pattern each time, but each triangle becomes smaller… We may see another triangle break out and it may be 400 WMA floor #Crypto #cryptocurrencies #cryptocurrency – Aditya Siddhartha Roy❁ (@Adityaroypspk) July 7, 2022.

Regulatory uncertainties continue to put pressure on investor sentiment after the European Central Bank (ECB) released a report saying a lack of regulatory oversight had contributed to the recent fall in prices. stable tires algorithmic. Accordingly, the ECB has proposed supervisory and regulatory measures to limit the potential influence of the ECB. stable tires in the financial systems of European countries.

On July 5, Jon Cunliffe, Deputy Governor for Financial Stability at the Bank of England (BoE), proposed a set of regulations to address the risks in the cryptocurrency ecosystem. Cunliffe proposed a regulatory framework similar to that of traditional finance to protect investors from irrecoverable losses.

A couple of mid-cap altcoins came together and the mood improved slightly

A bearish sentiment has spread since the end of June according to the index fear and greed, a data-driven mindset gauge. The indicator hit an all-time high of 6/100 on June 19, but improved to 22/100 on July 11 when investors began to trust that the market was flat.

Crypto Index Eagla & saint. Source:

Here are the winners and losers of the final seven days. Notice that a handful of mid-cap altcoins were up 13% or more, while the total market cap was up 2%.

Weekly winners and losers in the top 80 medals. Source: Nomics

Aave (AAVE) gained 20% as the loan protocol announced plans to coin stable a proposal submitted to an autonomous decentralized public organization.

Polygon (MATIC) grew 18% after projects previously operating in the Terra ecosystem (LUNA), now known as Terra Classic (LUC), migrated to Polygon.

Chiliz (CHZ) increased 6% after the app announced public – related features to boost user engagement and integration with vetting third – party developers.

Demand for flows and derivatives in Asia is neutral and balanced

an OKX Tether premium (USDT) measure the difference between exchanges peer to peer based in China and the official currency of the US dollar. Excessive cryptocurrency retail demand is pushing the indicator above 100% fair value. On the other hand, Tether (USDT) market supply is likely to be flooded by bear markets, resulting in a 4% or greater discount.

Tether (USDT) peer-to-peer against the USD / CNY pair. Source: OKX

Tether is trading at 1% or more discounts on the markets peer to peer Asians from 4 July. The indicator failed to show an improvement in sentiment on July 8, as the total cryptocurrency market capitalization flirted with $ 980 billion, the highest level in 24 days.

To determine whether the lack of excitation is limited to the flow of stable tires, it is necessary to analyze the futures markets. Permanent contracts, also known as reverse exchanges, have an embedded rate that is typically calculated every eight hours. Exchanges use this rate to avoid exchange risk imbalances.

A positive financing rate indicates that ships (buyers) are looking for more leverage. However, the opposite situation occurs when the broken short (sellers) request additional leverage, leading to a negative funding rate.

Cumulative rate of perpetual futures funding as at 11 July. Source: Coinglass

Read also: Bitcoin Range Analysts Say More Likely “Consolidation” Until “Macro-Catalyst” Emerges »

Perpetual contracts showed a neutral mood as bitcoin, ether and Ripple (XRP) pushed up mixed funding rates. Some exchanges funding rate slightly negative (bearish) present, but far from a barrier. The only exception was the Polkadot negative weekly rate (DOT) of 0.35% (equivalent to 1.5% per month), but this is not a particular concern for most traders.

Given the lack of buying appetite in Asian-based retail markets and the lack of leverage futures demand, traders may conclude that the betting market is not comfortable.

The views and opinions expressed herein are those of one the author and those do not necessarily represent Cointelegraph. All investment and business transactions involve risk. You should do your own research before making a decision.

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