Crypto Relief Rally Fades As $50 Billion Leaves Market

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More than $50 billion has left the market since their seven-week high over the weekend, signalling what seems to be a slowing of the bear market relief rally.

However, given that cryptocurrencies are a sea of red today, the bears seem to be in charge once again.

In its “Week On-chain” report, on-chain analytics vendor Glassnode examined technical data to determine whether “it is a bear market relief rally or the beginning of a sustained bullish impulse.”

rally for bear market alleviation

Story Highlights

  • Over the last 24 hours, the value of the cryptocurrency markets has fallen by 3.7 percent, bringing it once more below $1.1 trillion.

  • The macroeconomic news last week that the U.S. Federal Reserve increased rates and the nation entered a technical recession had little impact on the markets.

The price of bitcoin has remained range-bound since its spectacular drop in mid-June, despite the current rebound. It has retreated back below $23,000 today after failing to overcome significant resistance at little over $24,000.

This was confirmed by Glassnode, which noted that “present network activity shows that there remains minimal influx of new demand as of yet.” Transactions, it was further noted, had been flat to slightly declining, suggesting that only the “steady base of higher conviction traders and investors remain.”

Bitcoin is currently trading right on its 200-week moving average at $22,872, and just above its Realized Price which is $21,816 according to Woo Charts. The Glassnode data analyzes last week’s crypto market action and has not taken into account the past two days of declines, however, which are likely to be even more bearish.

Altcoins in the red
Bitcoin’s 2.3% daily decline is not as bad as its brethren are suffering. Ethereum, which has been driving market momentum recently, has lost 7% on the day in a fall to $1,576 at the time of press according to CoinGecko. Binance Coin (BNB), Cardano, and Solana are all down 4%-6% while Polkadot (DOT) has dumped 12.7% on the day.

All on-chain indications suggest that the recent rally has only been a bit of bear market relief and further declines are likely as the crypto winter drags on.