Analysis: Key Indicators Signal Long-Term Strength for Bitcoin
Coinspeaker Analysis: Key Indicators Signal Long-Term Strength for Bitcoin
Bitcoin (BTC) has had a tough August, with its price dropping more than 13% to as low as $50,000 in just the first few days. This decline is due to several factors, including the unwinding of the yen, carry trades and concerns about the US economy.
Despite this, two key indicators suggest BTC could be strong in the long run.
Positive Outlook from Long-Term Options
One positive sign is the sustained optimism in Bitcoin’s long-term options market. Data tracked by cryptocurrency platform Amberdata shows that Bitcoin’s 180-day call-put skew remains high, indicating confidence in its price strength over the next six months. This skew measures the demand for call options versus put options. A positive skew means investors are paying more for calls, reflecting a belief that Bitcoin price will rise.
Call options allow investors to buy Bitcoin at a set price in the future, while put options let them sell at a set price. The current positive skew suggests that investors expect Bitcoin price to go up, which is a good sign for its long-term performance.
Buying Pressure on US Exchanges
Another encouraging factor is the buying activity on US exchanges. Despite recent price drops, data from Kaiko shows that buying activity on platforms like Coinbase, Gemini, and Kraken has been strong. This is measured by cumulative volume delta (CVD), which tracks the difference between buying and selling volumes. A positive CVD indicates more buying than selling, suggesting that traders are taking advantage of lower prices.
Photo: Kaiko
While offshore exchanges like Binance and OKX have seen more selling, the positive CVD on liquidity-rich US exchanges indicates that many traders, including institutional ETF issuers, are buying Bitcoin during the dip, which could help support its price.
Other Technical Indicators and Historical Trends
In the short term, Bitcoin’s recent sharp drop and an RSI below 30 suggest it might be oversold, which could lead to a potential rebound soon. Historically, such conditions have often preceded short-term recoveries, indicating that Bitcoin might stabilize or improve in the near future.
For the long term, Bitcoin remains in an upward trend channel, with key support levels around $45,000 and resistance at $70,000. This positive trend suggests that, despite recent declines, Bitcoin’s overall price trajectory has been upward.
This pattern is similar to Bitcoin’s behavior during the March 2020 market crash, when a significant drop was followed by a strong rebound as economic conditions improved. If current economic issues are resolved and conditions stabilize, Bitcoin could experience a similar recovery.
In summary, while Bitcoin faces short-term volatility, the long-term outlook is promising. Investors and traders are advised to stay cautious amidst current volatility but to keep an eye on Bitcoin’s long-term potential.
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Analysis: Key Indicators Signal Long-Term Strength for Bitcoin#BTCMarketPanic $BTC $BTC

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Fear, uncertainty, and doubt (FUD), have rocked the global crypto market, leading to a significant downturn. Traders woke up on August 5 to find the crypto market in a ‘bloodbath’ with top cryptocurrencies including Bitcoin and Ethereum taking massive hits. Consequently, the total market value has crashed by a notable 13%, dropping below the $2 trillion mark to $1.85 trillion.
The latest data has sent shockwaves through the market as investors are indecisive on what to do next. The flagship cryptocurrency, BTC, has plummeted by more than 12% at the time of writing, now changing hands at $53k. Also, Ethereum has dropped far below $3k, now trading at $2,300. As the Bears are gaining momentum, investors are asking why Bitcoin and the crypto market crashed today. Let us have a look.
Four Reasons Why the Crypto Market is Down Today
Bitcoin and Ethereum ETF Negative Inflows
One of the major reasons for the current downtrend witnessed in the crypto market at this time is the significant negative flows of both the Bitcoin and Ethereum exchange-traded fund (ETF). As of the last Soso Value data update on August 2, BTC saw a daily total net inflows of negative $237.45 million. Meanwhile, Ethereum’s value rested at a negative $54.27 million.
Notably, for BTC ETF, Fidelity’s FBTC fund recorded the largest outflows with $104.10 million. Ark’s ARKBa and Grayscale’s GBTC came in second and third with $87.68 million and $45.95 million respectively. The outflow values crushed the inflows which saw BlackRock’s IBIT fund record the largest inflow with $42.81 million.
For ETH ETF, Grayscale’s ETHE saw $61.43 million in outflows on the same date while Fidelity’s FETH recorded the highest inflow with just $6.02 million. Comparing these data, the significant outflows have struck a disastrous blow to the market.
Mt. Gox Bitcoin Repayments
Another reason for the recent crypto market crash is the Mt. Gox Bitcoin repayment activity. Before the start of the scheduled creditor repayments, market participants expressed their worries about the potential effect it would have on the broader market. Investors speculated that the creditors, who have waited a decade for their funds, will start a selling spree once the funds hit their wallets.
Some analysts even predicted that the price of BTC might fall as low as $45,000 in the coming months as a result of the speculated selloff. Even though BTC’s price showed some form of resilience, it may seem that the prediction is materializing.
Last week, the defunct crypto exchange sent billions of Bitcoins to designated crypto exchanges for redistribution to its rehabilitation creditors. Following this, creditors who received their pay quickly cashed out by selling on the open market, thus, increasing the selling pressure on the coin.
At press time, Mt. Gox still holds 46.164k BTC, valued at approximately $2.45 billion to be repaid to its creditors.
Rate Cut Delay by the FOMC
Before the last Federal Open Market Committee (FOMC) meeting which happened on July 31, the crypto market enjoyed a notable uptrend triggered by the expectation of a rate cut by the Fed. However, during the conference, the Federal Reserve kept the interest rate at 5.25% – 5.5%, teasing a possible rate cut in September.
Consequently, the excitement faded across the crypto market which catalyzed a bearish turn. Bitcoin critic Peter Schiff also made a comment pointing out that the Fed rate cut might not revive the economy, instead, it will increase inflation.
Massive Bitcoin Liquidation
Over the weekend, the crypto market experienced massive long liquidations. According to Coinglass data, Bitcoin saw over $241.07 million liquidated, which represents about 90% of the total market liquidation. This has increased the pressure on the crypto market as the coin now trades at its monthly lowest. Also, the Bitcoin Open Interest has declined by 16.26% in the last 24 hours.
The post Here are Four Reasons Why Bitcoin and the Crypto Market Crashed Today appeared first on Coinfomania.
comment Mt Gox peut détenir 46 164 000 BTC l'offre en BTC est à combien 🤔 erreur de frappe ou quoi 46k sûrement Non il a bien mentionné 46164: le point en anglais représente une décimale et non un séparateur de milliers contrairement au français…últimamente ja to achando que é golpe Isn’t it to burn the money of the small investors . Specially with all the elections coming up ? ! Conspiracy theory maybe - but who is losing and who is gaining?Es hora de comprar. este mercado no es para cobardesBTC .....25 mil UP UP UP #
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Why Is The Crypto Market Crashing So Heavily? A Breakdown Of The Current.The recent days have been horrible. Bitcoin has lost almost 20% since hitting 70k, and many altcoins are down 50% or more.So, what’s driving this sudden downturn? It’s not just one factor but rather a combination of several that have converged to create what could be described as the perfect storm.Here are the main drivers:Recession FearsThis is most likely the main driver of the latest sales pressure. The specter of a U.S. (and global) recession is looming large, and economic indicators are flashing warning signs. As a result, risk assets like crypto are taking a hit as investors flock to safer havens.Trump Presidency Odds DecreasingPolitical markets are highly intertwined with financial ones, and the decreasing odds of a Trump presidency are shaking things up. Trump is seen as pro-crypto, and he underpinned this with his latest appearance at bitcoin 2024. With his odds declining, some investors are starting to reposition, fearing less favorable policies from other candidates.Yen UnwindOne of the more technical but significant factors is the unwinding of positions in the Japanese yen. Recently, the Bank of Japan raised interest rates from 0% to 0.25%—a significant move, as it’s the first increase in years. Many investors had borrowed yen at virtually no cost to fund investments in other assets, taking advantage of the ultra-low interest rates. With the rate hike, these leveraged positions have become more expensive to maintain, leading to a rush to unwind them. This action is creating broader instability in financial markets, including crypto.Geopolitical TensionsRising geopolitical tensions in the Middle East and the ongoing war in Gaza are adding to market uncertainty. These conflicts heighten global risk aversion, with investors pulling out of volatile assets like cryptocurrencies in favor of safer investments. The instability in this region is contributing to the broader sell-off as market participants react to the increasing unpredictability of global events.
The recent days have been horrible. Bitcoin has lost almost 20% since hitting 70k, and many altcoins are down 50% or more.
So, what’s driving this sudden downturn? It’s not just one factor but rather a combination of several that have converged to create what could be described as the perfect storm.
Here are the main drivers:
Recession Fears
This is most likely the main driver of the latest sales pressure. The specter of a U.S. (and global) recession is looming large, and economic indicators are flashing warning signs. As a result, risk assets like crypto are taking a hit as investors flock to safer havens.
Trump Presidency Odds Decreasing
Political markets are highly intertwined with financial ones, and the decreasing odds of a Trump presidency are shaking things up. Trump is seen as pro-crypto, and he underpinned this with his latest appearance at bitcoin 2024. With his odds declining, some investors are starting to reposition, fearing less favorable policies from other candidates.
Yen Unwind
One of the more technical but significant factors is the unwinding of positions in the Japanese yen. Recently, the Bank of Japan raised interest rates from 0% to 0.25%—a significant move, as it’s the first increase in years.
Many investors had borrowed yen at virtually no cost to fund investments in other assets, taking advantage of the ultra-low interest rates. With the rate hike, these leveraged positions have become more expensive to maintain, leading to a rush to unwind them. This action is creating broader instability in financial markets, including crypto.
Geopolitical Tensions
Rising geopolitical tensions in the Middle East and the ongoing war in Gaza are adding to market uncertainty. These conflicts heighten global risk aversion, with investors pulling out of volatile assets like cryptocurrencies in favor of safer investments. The instability in this region is contributing to the broader sell-off as market participants react to the increasing unpredictability of global events.
#BTCMarketPanic $BTC

#MyFirstSquarePost New to Binance Square, thrilled to share and connect with everyone here!Experts Say BTC Will Stay Over $60,000 and Possibly Hit All-Time High Price Next 3 Month – Top 5 ...
Bitcoin is projected to retain its value above $60,000 and may even reach new heights in the next three months, according to industry experts. In light of this, attention shifts to other promising cryptocurrencies that could see significant gains. This article will reveal the top five altcoins poised for a potential bull run.
Ripple (XRP) 
XRP's current price sits between $0.58 and $0.63, with a promising outlook for a bullish run. The nearest resistance is at $0.66, while support lies at $0.55. Over the past month, the coin has surged by more than 20%, showcasing its strong potential despite a minor 5% dip last week. The RSI is around 52, indicating balanced market conditions poised for growth. If bulls gain momentum, XRP could swiftly push past $0.66 and aim for the $0.71 mark, representing a potential 20% rise from its current range. Holding above the $0.55 support strengthens the case for a positive upward trajectory.
Toncoin (TON)
Toncoin (TON) is currently trading between $6.31 and $7.07, presenting a promising opportunity for growth in the near future. Although the cryptocurrency has experienced a nearly 22% decline in the past month, it is poised for a potential rebound. The current price is below the 100-day simple moving average of $6.60, and with a low RSI around 33, TON might be oversold and ready for a recovery.
If TON can break past the nearest resistance at $7.52, it has the potential to climb to $8.28, representing a 17% increase from the upper range. With the right momentum, this could signify a robust bullish trend over the next three months. While there is support at $6.01, keeping an eye on these key levels will be crucial for anticipating any significant moves. Overall, Toncoin shows strong potential for growth in the upcoming months.
Cardano (ADA)
Cardano (ADA) is currently priced between 38 and 44 cents, presenting a promising opportunity for growth despite recent declines. The coin faces significant resistance at 48 cents and has strong support at 34 cents. While ADA has experienced an 11% drop in the past week and nearly 10% over the last month, and a 25% decline over six months, analysts see potential for a strong rebound.
The 10-day average is at 37 cents, with the 100-day average slightly higher at 39 cents, suggesting stability. The Relative Strength Index (RSI) is at 48.26, indicating neutral territory and the possibility for upward movement. If bullish momentum returns, ADA could target the 55-cent resistance, representing an impressive 35% increase from its current range. While bears have held the upper hand recently, the potential for a substantial recovery is on the horizon.
Arbitrum (ARB)
Arbitrum (ARB) is currently trading between $0.65 and $0.80, presenting a promising opportunity for a significant upward movement. While the past week has seen a decline of nearly 14% and an 18% drop over the past month, these levels could be setting the stage for a robust recovery. The nearest resistance is at $0.89, with strong support at $0.58.
If bulls gain traction, ARB could rise to $0.89, and with continued momentum, it could test $1.05, representing potential gains of around 15% and 45% from its current range. The RSI at 60.88, high Stochastic value of 94.39, and a negative MACD level indicate that while bears have been dominant, a shift in buying interest could swiftly reverse the downtrend. Investors should watch for stronger buy signals as ARB has the potential for impressive gains.
Kaspa (KAS)
Kaspa (KAS) is currently trading in a tight range between 17 and 20 cents, suggesting a balanced market with the potential for an upward movement. The nearest resistance level is at 21 cents, while support is at 16 cents. The coin's 10-day Simple Moving Average is 19 cents, and the 100-day SMA is 20 cents, reflecting recent stability.
With an RSI of 48.01, Kaspa is in a neutral position, and its MACD level of zero indicates a lack of strong momentum. However, over the past week, the price has increased by nearly 4%, and the one-month rise shows an 8.6% gain, demonstrating positive movement.
If Kaspa can break through the 21-cent resistance, it has the potential to reach 23 cents, representing a 15% increase. This possible growth, coupled with recent positive trends, indicates that Kaspa is well-positioned for further gains.
Conclusion
Summing up, as Bitcoin is expected to stay above $60,000 and possibly hit an all-time high in the next three months, investors should consider diversifying into other promising altcoins. XRP, Toncoin (TON), Cardano (ADA), Arbitrum (ARB), and Kaspa (KAS) each present strong potential for significant gains. Monitoring key resistance and support levels, along with market indicators like RSI and SMA, can help identify optimal investment opportunities. With strategic planning and careful analysis, these altcoins could offer substantial returns during the anticipated bull run.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.$BNB
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