Bitcoin Remains Under Strain as Bargain Seekers Emerge: Crypto Market Overview

By Omkar Godbole (All times ET unless otherwise specified) The pressure on Bitcoin continues, with the cryptocurrency failing to regain its bullish trendline from the April lows. Despite this, the downside has been largely limited to around $114,600 for the time being. However, there are signs that new buyers are entering the market. According to Glassnode's Supply by Investor Behavior metric, the supply held by first-time buyers has increased by 1.0% to 4.93 million BTC over the past five days. Additionally, the supply controlled by long-term investors, also known as conviction buyers, has grown by 10% to 1.03 million BTC. Nevertheless, the recent surge appears to be muted compared to July, suggesting that the latest price drop may not be deep enough to attract bargain hunters. The number of loss sellers, who are selling their cryptocurrency at a loss, has spiked by 37.8% to 87,000 BTC, indicating increased short-term selling pressure. According to CryptoQuant, these sellers are primarily short-term holders. If the market can quickly absorb these sales, it could mark a reset similar to past events that preceded strong rebounds. On the other hand, if absorption falters, it could signal a deeper momentum breakdown, according to CryptoQuant. In other news, Ethereum prices appear to be retracing to test a crucial breakout point near $4,100. "Ethereum has rolled back to $4,200, losing over 12% from its peak. The second-largest cryptocurrency by market capitalization is now aiming to test the strength of the former resistance area near $4,100, which has been holding back price growth since March 2024," said Alex Kuptsikevich, chief market analyst at FxPro. "The ability to stay above this level will indicate a change in the market regime for this cryptocurrency, as the significant capital inflows also suggest." Looking at the broader market, the crypto market and Nasdaq market breadth point to interim weakness within an ongoing bull run. According to some observers, Bitcoin, Ethereum, and Solana have all recently entered oversold territory on the Relative Strength Index (RSI), suggesting that while caution is warranted, these dips may present opportunities. Remain vigilant! Key Events to Watch Token Events Conferences The CoinDesk Policy & Regulation conference (formerly known as State of Crypto) is a one-day boutique event held in Washington on September 10, bringing together general counsels, compliance officers, and regulatory executives to meet with public officials responsible for crypto legislation and regulatory oversight. Space is limited, and attendees can use the code CDB10 for a 10% discount on registration through August 31. Token Talk By Shaurya Malwa Derivatives Positioning Market Movements Bitcoin Statistics Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors Chart of the Day While You Were Sleeping In the Ether