The crypto-markets are witnessing a cool-down with volumes subsiding in the past couple of days. The break-down to lows in BTC and subsequent downfall in altcoins is now threatening a reversal in bullish sentiments.
The Open Interest on top derivatives exchange like BitMEX and Huobi is witnessing a drop since the beginning of March. Moreover, the funding rate of XRP on BitMEX is seeing now seeing a cool-off as the bearish sentiments are becoming prevalent in the markets.
The order-book schematics on exocharts indicates larger number of sell orders around $0.238. The price of XRP at 5: 00 hours UTC on 4th March 2019 is $0.236.
However, negative funding rates and large orders on one side usually provide liquidity for whales. Prominent trader, Murfski, suggests that we might see an uptrend according to Elliot Wave analysis. He tweeted,
Looks cleaner on $XRP, but $BTC is in a similar pattern too. Would love something like this to throw people off guard.
As reported on CoinGape yesterday, XRP needs to break above $0.24 (parallel range in the short-term, to push higher.
Fundamentally, the recent acceptance of Ripple selling XRP by CEO Brad Garlinghouse along with the lawsuit related to securities view seems to be creating a lot of fear among investors.
Murfski outlines the probability of a rise, the formation he suggests in one of an ascending wedge, which is a actually bearish. The $9200-$9500 is an important area of resistance for Bitcoin [BTC] bulls, a bullish break above it could re-test the swing highs at $10,500.
Furthermore, the funding rate for Bitcoin [BTC] has been 0.03% daily for the past two days as well. Hence, as the bullish action has cooled off, a bear trap could lead to a shake-out with weak short hands, as the market turns lower.
Another prominent trader, CryptoISO expresses similar ideas on the Price Action (PA).
If the corn goes to 8500 and then 9.1-2k people’s heads are going to explode.
At which point it then goes to high 7’s and possibly the yearly open.
— CryptoISO (@crypto_iso) March 3, 2020
Nevertheless, in case the bears front run the action with huge volume, we could see another downside in the market possibly pushing the funding rates negative.
Do you think that the bulls are still around or the market is turning completely bearish? Please share your views with us.
Disclaimer
The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com
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