SHIB fell as Bitcoin (BTC) made its lowest weekly close in nearly two years. Now, the predator is starting a new week looking at the macro environment. Risk assets in the global economy take a hit and the US dollar continues to rise. In this environment, the biggest cryptocurrencies are loosely moving.
Events to price BTC, SHIB and altcoins this week
September, which started on the bull side, is now associated with the bear market. BTC is down 6.2% since the beginning of the month. The dire news continues to come for the growing number of long-term crypto investors as the dollar rises rapidly. Now, in the new week, some events that are expected to be decisive for BTC, SHIB and altcoin prices will take place. Macroeconomic developments are at the center of these events. Koindeks.comwe have prepared for you.
Bitcoin (BTC) returns to November 2020 levels
According to data from TradingView, the previous week’s losses (11% vs. 3.1%) do not match. However, the last seven days still caused Bitcoin to make its lowest weekly close since November 2020. As the setbacks continued, BTC returned to its levels before the breakout. Thus, it broke above the all-time high of the halving cycle in November 2020. For the average hodler, the feeling of déjà vu is not appreciated. Most of the buyers and holdings in the last two years are now in losses.
Strengthening dollar hits risk assets
Monday has only just begun, and the turbulent macro markets that accompanied last week seem to be taking their revenge. An unstoppable US dollar devastates other currencies. The British pound fell 5% against the dollar. Thus, it approached its lowest levels ever against the dollar. In the middle, alarm bells are ringing for global bonds falling to 2020 levels. “The bond bubble looks like it’s bursting,” market commentator Holger Zschaepitz said with Bloomberg information.
Stocks fell with futures trading the day before Wall Street opened. Brent crude oil has seen below $85 per barrel for the first time since the beginning of 2022. Crypto is still highly relevant to equities and opposing the strength of the dollar, the outlook for Bitcoin is therefore not positive as the status quo appears to continue. European Union CPI information will be released this week and is likely to show that inflation still continues to rise. Meanwhile, the US Personal Consumption Expenditure Price Index (PCE) data is expected to show the rise in inflation.
Long-term investors enter bear market mode
In the midst of such disorder, the faith of Bitcoin holders is growing. Also, long-term investors refuse to sell their holdings. Stubborn long-terms are the hallmark of Bitcoin bear markets. The latest information shows that mindset is making a definite return this year. Bitcoin’s CDD metric is setting new lows, according to analytics firm Glassnode. This follows weeks of various HODL-driven metrics that demonstrate a commitment to lock up BTC supply for more adequate days.
In this midst, Glassnode also noted the increase in BTCs held for at least three months. “Those who HODL Bitcoin stand firm and unwavering in their beliefs,” Glassnode said. A chart below shows Bitcoin’s HODL Waves metric. This represents a depiction of the supply being torn apart by the calm of the cryptocurrency.
Whales dictate levels of resilience and fulcrum
As the old hands move away from the “sell” button, Bitcoin’s biggest volume investors are on analysts’ radar when it comes to spotting price movements. The current trading range represents an area of interest due to the extent of trading activity that has involved whales in the past. Large purchases add additional weight to a reasonable base price. This is exactly the case for resistance levels. According to on-chain tracking resource Whalemap, Bitcoin is currently stuck in the middle of the two. This is not a favorable sign for SHIB and altcoins.
The Whalemap team summed up the situation at the end of last week: “Keeping the price in the middle of 19k to 18k is key for BTC”. The chart above shows the whale resistance levels trapping Bitcoin within the $20,000 zone. However, different numbers from research firm Santiment confirm that the whales’ BTC interaction has dropped to two-year lows.
“Extreme fear” continues to dominate the market
A familiar return to 2022 norms has taken place. Accordingly, the crypto market sentiment has been in “extreme fear” mode for over a week. Measuring crypto market sentiment, the Fear&Greed Index couldn’t have better illustrated the uneasiness of the average investor. As of September 26, Fear & Greed has recorded a 21/100 score. This falls into the “extreme fear” zone below 25/100. But this is not a new situation. The crypto market was in “extreme fear” mode for two months in 2022. At that time, BTC, SHIB and altcoin prices had dropped drastically.
Santiment noted a potential spike in social media attention that saw a rebound over the weekend. In some of their Twitter comments this week, they noted this surge of interest. Accordingly, BTC was discussed 26% more for the first time this year. More discussion of Bitcoin, SHIB, and altcoins amid investors could have good ramifications for crypto assets in the long run.