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Home Bitcoin

Could the Current Slump Signal an Imminent Rebound?

August 8, 2024
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Could the Current Slump Signal an Imminent Rebound?
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  • Bitcoin has fallen 22.5% from its peak, with current minor gains insufficient for recovery.
  • Recent futures market data suggests a bearish sentiment, potentially setting the stage for future bullish trends.

Over the past weeks, Bitcoin [BTC] has recorded a significant plunge in its value, dropping by 22.5% from its all-time high above $73,000 in March.

Although the asset has struggled to make a rebound this week following the ‘Red Monday’ it has not been enough. Currently, BTC is up by 0.6% in the past 24 hours however, the asset is still down by 11% on the 7-day chart.

Futures market sentiment 

ShayanBTC, an analyst from CryptoQuant, shared insights on the  Quicktake platform highlighting the impact of perpetual markets and long-squeeze events on Bitcoin’s price. 

According to Shayan, the key driver behind Bitcoin’s recent price drop could be attributed to increased selling activity within these markets. This was further evidenced by the sharp drop in funding rates, a vital indicator of market sentiment. 

Funding rates have recently turned negative, signaling a bearish sentiment dominated by short sellers. This shift suggests that the futures market is cooling down, potentially setting the stage for a more stable bullish trend in the future.

Shayan particularly noted:

“The funding rates have now turned negative, reflecting an overall bearish sentiment and the dominance of short sellers. However, this could also be seen as a positive sign, as it suggests the futures market is no longer overheated. This scenario could create conditions for a more sustainable bullish trend in the coming months, provided there are no drastic changes.”

Bitcoin recovery on the horizon?

Despite the gloomy short-term outlook, there are indicators that suggest a potential path to recovery. 

See also  How crypto will play an important part in the 2024 Presidential debate

Data from IntoTheBlock shows an increase in large Bitcoin transactions (exceeding $100,000), which spiked from below 16,000 to over 23,000 transactions on 5th August, before settling at around 16,560 today.

Source: IntoTheBlock

Source: IntoTheBlock

This fluctuation in whale activity could signify renewed interest from large investors, possibly hinting at a strategic accumulation of assets at lower prices.


Is your portfolio green? Check out the BTC Profit Calculator


Additionally, Bitcoin’s open interest has seen a slight decline of 0.2% in the past day, totaling approximately $27.56 billion. This coincides with a 7% drop in open interest volume, which now stands at $76.14 billion. 

Bitcoin open interest

Source: Coinglass

These shifts in open interest metrics could indicate a cooling off of leveraged positions, possibly reducing the risk of further long squeezes and contributing to market stabilization.

Next: Michael Saylor’s $1B Bitcoin stash: ‘I continue to acquire more’

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  • Bitcoin has fallen 22.5% from its peak, with current minor gains insufficient for recovery.
  • Recent futures market data suggests a bearish sentiment, potentially setting the stage for future bullish trends.

Over the past weeks, Bitcoin [BTC] has recorded a significant plunge in its value, dropping by 22.5% from its all-time high above $73,000 in March.

Although the asset has struggled to make a rebound this week following the ‘Red Monday’ it has not been enough. Currently, BTC is up by 0.6% in the past 24 hours however, the asset is still down by 11% on the 7-day chart.

See also  Ethereum Bullish Signal: Adoption Hits Four-Month High Rate

Futures market sentiment 

ShayanBTC, an analyst from CryptoQuant, shared insights on the  Quicktake platform highlighting the impact of perpetual markets and long-squeeze events on Bitcoin’s price. 

According to Shayan, the key driver behind Bitcoin’s recent price drop could be attributed to increased selling activity within these markets. This was further evidenced by the sharp drop in funding rates, a vital indicator of market sentiment. 

Funding rates have recently turned negative, signaling a bearish sentiment dominated by short sellers. This shift suggests that the futures market is cooling down, potentially setting the stage for a more stable bullish trend in the future.

Shayan particularly noted:

“The funding rates have now turned negative, reflecting an overall bearish sentiment and the dominance of short sellers. However, this could also be seen as a positive sign, as it suggests the futures market is no longer overheated. This scenario could create conditions for a more sustainable bullish trend in the coming months, provided there are no drastic changes.”

Bitcoin recovery on the horizon?

Despite the gloomy short-term outlook, there are indicators that suggest a potential path to recovery. 

Data from IntoTheBlock shows an increase in large Bitcoin transactions (exceeding $100,000), which spiked from below 16,000 to over 23,000 transactions on 5th August, before settling at around 16,560 today.

Source: IntoTheBlock

Source: IntoTheBlock

This fluctuation in whale activity could signify renewed interest from large investors, possibly hinting at a strategic accumulation of assets at lower prices.


Is your portfolio green? Check out the BTC Profit Calculator


Additionally, Bitcoin’s open interest has seen a slight decline of 0.2% in the past day, totaling approximately $27.56 billion. This coincides with a 7% drop in open interest volume, which now stands at $76.14 billion. 

Bitcoin open interest

Source: Coinglass

These shifts in open interest metrics could indicate a cooling off of leveraged positions, possibly reducing the risk of further long squeezes and contributing to market stabilization.

Next: Michael Saylor’s $1B Bitcoin stash: ‘I continue to acquire more’
Tags: currentImminentReboundsignalSlump

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    steroid remedy helped overweight males lose extra fats and protect muscle throughout weight loss in comparison with a placebo.
    The Mediterranean diet is amongst the healthiest eating habits in the
    world, and a key way to reverse prednisone weight gain. It’s versatile,
    stuffed with flavour and filled with well being benefits
    like improved coronary heart well being, decreased inflammation,
    and risk sort 2 diabetes. Are you dwelling with inflammatory bowel disease and taking prednisone to handle your symptoms?

    Second, excessive aromatase and estrogen exercise reduces the production of gonadotropin-releasing hormone
    (GRH). Lack of GRH results in decrease levels of luteinizing hormone, which in flip reduces the manufacturing
    of testosterone (12, 13). Some customers choose stacking Tren with
    different steroids such as testosterone as a outcome of T-levels rise too much on their
    own during a Tren cycle making Tren a little too intense
    for some customers. If you would possibly be unhappy with the adjustments to your weight and look, your physician might adjust your steroid dosage or explore various remedies.
    Regular bodily exercise can help you handle your weight and enhance your total well being.

    Purpose to stay as active as potential, but all the
    time in consultation with your doctor. Steroids impression the way our our bodies metabolize (break down and use) fat.

    Intermittent fasting could be an effective way to shed weight, offered
    your care team recommends it. Still, ask your doctor if any different medications or treatments would maintain your health with out the additional pounds.
    If you wish to lose a couple of further pounds that you’ve put on since
    taking a weight gain-inducing medication, you’re already on the proper track.
    In short, bodybuilding gear Steroids [cs.transy.Edu] are often seen as a shortcut
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    They also assist to suppress the immune system, so healthy cells aren’t attacked.

    Such physiological modifications in hormones
    and brain chemistry may also improve the probabilities of a male getting a girlfriend.
    However, the longevity of such relationships can also depend upon her view on steroids.

    You won’t obtain treatments particularly to scale back your
    moon face. These are danger components for Cushing’s syndrome and for hypothyroidism.
    Not everybody with these circumstances will develop moon face, however it’s
    a frequent symptom of each. For example, taking prednisone can even trigger you to
    lose bone minerals.
    That said, it would be sensible to extend slowly over the course of
    years and years. Start with 75mg per week, and improve solely after you’re
    100 percent certain you probably can deal with the unwanted side effects.
    This Trenbolone Fats Loss process will increase the variety of fatty acids in your blood, while Tren also reduces lipogenesis (the storage of fat).
    From my expertise, it’s extra of a “side effect” than the top aim, however there are nonetheless many Tren customers who want to
    know if Tren burns fat and how efficient it really is.
    The longer you’re taking prednisone, the extra probably
    you would possibly be to experience these side effects. Let’s speak about what
    prednisone is, why it can trigger weight gain, and what
    you can do about it.
    Dianabol provides you spectacular muscle positive aspects inside a couple
    of short weeks. Masteron is popular amongst bodybuilders
    as a slicing compound. That’s as a end result of solely people who
    are already very lean see its most potential.

    Moon face is when fats deposits construct up alongside the edges of your face, inflicting severe
    swelling. Moon face is a typical aspect effect of corticosteroid use and a symptom of sure health conditions.
    Though harmless, the situation can have an result on your shallowness.
    The medical term for that is moon facies, but different individuals name it cortisol face.

    Reply
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    Testosterone will accelerate subcutaneous fats loss and considerably enhance muscle hypertrophy and
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    Testosterone suspension just isn’t recommended for beginners because of its fast-acting nature, being pure
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    The Animal M-Stak is a high-quality supplement designed to help athletes and health enthusiasts obtain their
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    Chopping stacks goal to increase your metabolic fee, decrease emotions of hunger, reduce water retention, and
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    Given the identified unwanted facet effects of extreme amounts of caffeine (detailed
    above), it’s finest to not push your limits by taking a pre-workout complement
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    In conclusion, Animal Stak is the proper complement for many who are serious about attaining their fitness targets.

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