Crypto Market Review, Oct 7

Arman Shirinian

The market will most likely remain in a depressive state as recovery does not seem possible in the foreseeable future.

Contents

  • Shiba Inu turns into a ghost
  • Bitcoin fails once again

The cryptocurrency market has been going through a rough period for the past few weeks as almost all recovery rallies end up showing no significant results. Shiba Inu failed to break the local resistance level, Bitcoin failed to reach $21,000, and Ethereum is continuously losing value.

Shiba Inu turns into a ghost

The lack of volatility, poor price performance, and the disappearance of whale support had catastrophic consequences for the token, as speculative interest was the main fuel for it in 2021.

Shiba Inu Table
Source: TradingView

Based on volume profiles, Shiba Inu is losing most support from investors and traders in the short term. The most likely scenario for the token remains a continuation of the prolonged downtrend it has been in all year.

After reaching the ATH, the Shiba Inu whales were actively supporting the token on their way down, with the goal of reversing at some point. Unfortunately, the huge dominance of the whales over the assets did not help it to enter an uptrend, as the percentage of retail investors who are willing to get rid of their tokens as soon as possible is too high.

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According to market data, after each notable price increase, the selling pressure on assets exceeded the normal amount by nearly 20%, suggesting that some traders are specifically aiming to provide selling volume when the asset is trying to sell. break.

Bitcoin fails once again

As we mentioned in our previous market review, Bitcoin is not gaining enough traction and will most likely target a reversal as soon as it hits the local resistance level around $20,000.

Lack of inflows, low transaction volume, and questionable economic conditions in the US are driving the price of the top cryptocurrency down. Yet another failure to break the local resistance level will lead to a reversal to the lower edge of the consolidation range.

Unfortunately, Bitcoin is not showing any signs that would suggest an upcoming advancement of the channel in which it has been moving for the last 100 days. Some experts believe that the current sideways market is nothing more than a period of accumulation for large retail investors and whales. However, on-chain data does not support the theory, as buying volume and network activity have shown no spikes since May, when the price of the first cryptocurrency fell to the values ​​we are seeing today.

Bitcoin’s situation is projected for other cryptocurrencies, including Ethereum, which has yet to recover from the massive loss it suffered after the implementation of the Merge update.

The inability to break through the first untested resistance level shows the lack of power behind every move of Ether. Most likely, the situation will change with the general recovery of the cryptocurrency market.

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