‘Most Despised’ Stocks Surge As Bitcoin Fights 2-Month Resistance

August

11

By Awi Khan // in Bitcoin

0 comments

After the release of U.S. inflation data, risk assets rise, but there is hardly any indication that a sustained advance is about to start.

On August 11, Bitcoin (BTC) broke through the top of a steadfast trading range as a decidedly uneasy rise took hold of risk assets.

Near $25,000, Bitcoin Retracement Warnings Get More Serious

BTC/USD reached highs of $24,750 on Bitstamp, its most outstanding performance since June 13, according to data from Cointelegraph Markets Pro and TradingView.

Prior weeks saw the pair attempt many breakouts to the top of the range, but they all failed due to strong selling pressure.

However, the release of fresh US inflation data this week served as a much-needed stimulus for change, with Bitcoin and altcoins surging with stocks as the Consumer Price Index (CPI) print for July suggested that inflation had peaked.

The S&P 500 and Nasdaq Composite Index both experienced gains on August 10, the day of the announcement, of 2.1% and 1.9%, respectively. On the other side, BTC/USD experienced a daily candle of about $900.

The market experts were anything but uniformly bullish when the dust settled, though, as opposed to amplifying their confidence. Investor Raoul Pal observed that the post-CPI surge was being viewed as a bad apple by the general public.

He wrote in a thread on Twitter for the purpose: “Well, this seems to be one of the most detested rallies I’ve seen in quite a few years in equities.”

Pal asserted that there was still a “very fair likelihood” that stocks had reached their low point in June.

Popular trader and analyst Il Capo of Crypto predicted a significant shift in cryptocurrency sentiment, sticking with $25,500 as the highest probable target before the start of a new slump.

$BTC increased by over 40%. Significant Chance; Retrace Coming. Buy The Dip,” said Jibon, a different account, in subsequent Twitter remarks.

A bit more optimistic, Crypto Tony remarked that if the range was high held, hodlers would be “in for a treat.”

Rise Of Skepticism Over Ethereum Surge

The largest altcoin, Ether (ETH), was thrust into the spotlight after ETH/USD increased by more than 11% due to the remarkable performance across all altcoins.

The pair kept gaining throughout the day, moving closer to the psychologically critical $2,000 level and breaking beyond $1,900 for the first time since June 6.

The Goerli testnet merge, a crucial step in preparing for the final Merge event in September, was completed, adding CPI impetus to the already-exciting Ethereum market.

“Ethereum has surpassed Bitcoin in terms of trading volume since the beginning of this adverse market rally in the middle of June. According to a blog post published on August 10 by Maartuun, a contributing analyst at on-chain analytics platform CryptoQuant, “Ethereum and Bitcoin Dominance has even crossed in the last few days.

Maartuun issued a warning, noting that even if ETH continued to lead the gain, historical precedence did not favor a long-lasting uptrend for other cryptocurrencies.

Ethereum is very well-liked on exchanges, as evidenced by its increasing dominance. Given the imminent 2.0 merge, that seems reasonable,” he concluded.

“However, based on my five years of expertise in the cryptocurrency market, rallies that Ethereum drives are typically not the best for the market. I’m pretty conservative, as you can see from my past assessments. Especially considering that Ethereum has already moved higher by > 100% from its lows.”

 

About the author, Awi Khan

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