Contents
- Shiba Inu turns into a ghost
- Bitcoin fails yet again
Crypto Market Review, October 7
Arman Shirinyan
The market will most likely remain depressed as recovery does not appear to be possible in the foreseeable future
The cryptocurrency market has been going through a tough period in recent weeks, as almost every mining rally ends without showing any significant results. Shiba Inu failed to break the local resistance level, Bitcoin could not reach $21,000 and Ethereum continuously loses value.
Shiba Inu turns into a ghost
The lack of volatility, poor price performance and the disappearance of whale support led to disastrous consequences for the token, as speculative interest was the main fuel for it back in 2021.
According to volume profiles, Shiba Inu is losing most of its support from short-term investors and traders. The most likely scenario for the token remains the continuation of the long-term downtrend it has been in throughout the year.
After reaching the ATH, the Shiba Inu whales actively supported the token on the way down, aiming for a reversal at one point. Unfortunately, the huge dominance of whales on the assets did not help it enter an uptrend, as the percentage of retail investors willing to get rid of tokens as soon as possible is too high.
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According to market data, after each notable price increase, selling pressure on assets exceeded the usual amount by nearly 20%, suggesting that some traders are specifically geared to provide selling volume when the asset makes an attempt to break out.
Bitcoin fails yet again
As we have mentioned in our previous market review, Bitcoin is not gaining enough traction and will most likely aim for a reversal as soon as it reaches the local resistance level of around $20,000.
The lack of inflows, low trading volume and questionable conditions in the US economy are driving the price of the first cryptocurrency way down. Another failure to break the local resistance level will lead to a reversal back to the lower boundary of the consolidation area.
Unfortunately, Bitcoin is not showing any signs of an upcoming breakout from the channel it has moved into in the last 100 days. Some experts believe that the current sideways market is nothing more than an accumulation period for large retail investors and whales. However, data on the chain does not support the theory as the volume of purchases and network activity have not shown any peaks since May, when the price of the first cryptocurrency fell to the values we see today.
The situation on Bitcoin is projected for other cryptocurrencies, including Ethereum, which still has not recovered from the huge loss it took after the implementation of the Merge update.
The inability to break the first untested resistance level shows the lack of power behind every movement of Ether. The situation will most likely change with the general recovery of the cryptocurrency market.
