Bitcoin and Ethereum traded in the green early Monday morning as the global cryptocurrency market cap rose 0.8% to $1.02 trillion.
|Piece of money||24 hours||7 days||Price|
Top 24 hour winners
|Cryptocurrency||% change over 24 hours (+/-)||Price|
|Lido CAD (ETH)||+6.6%||$2|
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Why is this important: While major cryptocurrencies were trading higher intraday, the upward momentum was not strong. As for stocks, S&P 500 and Nasdaq futures were down 0.6% and 0.8%, respectively, at press time.
Risk asset volatility precedes expected comments from the US Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium, which is scheduled for August 25.
Senior Market Analyst OANDA Craig Erlam said in a recent note, seen by Benzinga, that the next key test for Bitcoin could be the $20,000 level. He said, “Crypto winter may not be over yet.”
Saniment said markets rebounded on Monday after Bitcoin and Ethereum fell below $20,900 and $1,540, respectively, on Sunday. The market information platform said the exchanges are experiencing “high levels of [short] trades]ahead as “people fear going back to June levels. As long as they are betting against the markets, there is a higher chance of an upside.
After #Bitcoins fell below $20.9k and #Ethereum below $1,540 yesterday, markets rallied a bit. Exchanges are experiencing high levels of #short trading is coming, as people fear it will fall back to June levels. As long as they are betting against the markets, there is more chance of an upside. pic.twitter.com/Ang11S6f7R
— Santiment (@santimentfeed) August 21, 2022
Trader in cryptocurrency Michael van de Poppe said that the total cryptocurrency market cap still looks the same. He said he was holding the 200-week moving average for support, implying that “continuation is still likely and bottom is at or near.”
The total market capitalization of #crypto always looks the same.
The rejection at the crucial $1.2 billion point is where the market consolidated.
Maintaining a 200 week MA for support, implying continuation is still likely and bottom is inside or near. pic.twitter.com/7bmOtNNys9
— Michael van de Poppe (@CryptoMichNL) August 21, 2022
Justin Bennett pointed out that cryptocurrencies fell more sharply against the S&P 500.
S&P: -12% BTC: -70%
S&P: -8.5% BTC: -55%
S&P: -2.5% BTC: -15%
— Justin Bennett (@JustinBennettFX) August 20, 2022
“At this level, [stocks] do NOT need to make new stockings for [BTC] to make new lows,” the cryptocurrency trader tweeted.
Bennett said that even a 7% drop in the S&P 500 could mean a 40% drop for Bitcoin.
Heading into the new trading week, Alternative.me’s “Crypto Fear & Greed Index” showed “Fear”, just like it did last week.
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