BitcoinBTCEthereum (ETHAfter the crash on August 4,, recovery was 21% for both and 18% respectively.
Aurelie Barthere is a Principal Research Analyst with NansenShe told CryptoSlate the worst could be yet to come. She explained.
“BTC (and ETH) have hit local bottoms, but the daily trend still looks negative: the 50-day moving average is about to cross below the 200-day moving average.”
Barthere explained that it creates a technical pattern called “Death Cross,” Which usually precedes an eventual price decline.
To avoid the bearish signal on BTC’s chart, Nansen analysts explain that BTC has to remain above the price of $62,000. The current zone of $70,000 to $71,000, which is the all-time highest price level for BTC, still represents a significant barrier.
Barthere is added to the list
“Psychologically, a few traders have been hurt by the March and July sell-offs and this might be a very difficult threshold to cross.”
ETH also shows a correlation to BTC. This is especially true during times of sell-offs. The analyst notes that ETH displayed a Death Cross (or a Death Cross) on its daily graph and must hold above the $2,700 mark, which was a resistance test in January as well as this week.
US Elections halt Crypto Market
This week’s massive drop in risky assets is attributed by the Bank of Japan to the unwinding of Yen carry trading due to its too rapid interest rate cuts.
Bitfinex The publication was informed by analysts that this move would allow for a slower unwinding, and act as a rescue package to the majority of leveraged traders in particular the US.
The US election is, therefore, by far the largest factor affecting crypto markets, say Bitfinex analysts.
They added:
“As Democrat nominee Harris has seen an increase in odds of winning to almost equal Republican nominee, former President Trump’s odds, it induces uncertainty in markets, especially crypto.”
As of the date this article was written, Harris and Trump are tied At 49% odds, the Democrat candidate is the favorite on Polymarket’s prediction market briefly surpassing Former US President, earlier this day.
Analysts:
“The clear stance that the market has shown based on recent events is that Trump winning is being priced in as a net positive for crypto and vice versa for Harris winning.”
Analysts at Bitfinex expect the market to recover if Trump’s odds are currently low.
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Source: cryptoslate.com