The crypto market, notably Bitcoin and Ethereum, faces a downturn as signs of the bullish rally reaching its end emerge. Recent trends show Bitcoin's transaction volume declining, Ethereum dropping over 4%, and even meme coins following suit. This marks the conclusion of a comfortable rally period that boosted the overall crypto market capitalization significantly.
Bitcoin exhibited a robust performance during the recent bull run, with a surge in price by nearly 30% last month. However, analyses from Santiment revealed key wallets holding significant BTC amounts shedding coins, and transaction volumes declining despite the price rise. Sentiments report indicated an increase in Bitcoin's MVRV ratio, suggesting potential stabilization before another upward movement.
As of the latest data, Bitcoin's price stood at $36,656.75 with a market cap exceeding $716 billion. However, its trading volume plummeted by 40%, signaling reduced investor willingness to trade. Technical analyses indicated bearish signals like a MACD crossover and a downtick in RSI, suggesting a potential price drop despite some hopeful signs in indicators like CMF.
Ethereum also participated in the recent rally, with its price climbing over 25% in 24 hours, surpassing $2,000. Nevertheless, indicators hint at a possible end to its bull run as the price dipped by over 4% in the last week. Market sentiments from CryptoQuant revealed weakening buying sentiments among Korean retail investors and fund entities, coupled with a drop in transaction count and volume, posing concerns.
Meme coins, including Dogecoin and Shiba Inu, experienced similar downward trends, reflecting the overall slowdown in the market. As various metrics point towards a sluggish market phase ahead, investors are advised to navigate cautiously amid the anticipated slowdown.
In the Forex market, Bitcoin and Ethereum have become significant assets for traders diversifying their portfolios. The recent fluctuations in the crypto market, including declining transaction volumes and bearish indicators for Bitcoin and Ethereum, are critical aspects affecting traders' sentiments. The fluctuations in trading volumes, price drops, and weakening buying sentiments among investors are elements influencing traders' decisions and positions within the Forex market. As the bull rally ends, traders need to adapt strategies to navigate potential downtrends, interpreting various technical indicators and market sentiments to make informed Forex trading decisions involving Bitcoin and Ethereum. Understanding these shifts is crucial for Forex traders to incorporate cryptocurrencies into their trading portfolios to mitigate risks and capitalize on market movements.