After a long run up, major cryptocurrencies witnessed profit booking on Monday morning. Barring the US dollar pegged tokens, all the top 10 cryptocurrencies were trading in red at 9.30 hours IST on Monday. Led by Bitcoin, crypto tokens declined as much as 6 per cent.
The global crypto market cap jumped to $1.60 trillion, more than 4 per cent higher compared to the last day. However, the total crypto market volume increased over 7 per cent to $81.53 billion.
The largest cryptocurrency gained Sunday for an 11th day in the past 12 and traded up to $42,606, its highest since May 18. However, profit taking across the board jittered sentiments in the crypto market.The past 24 hours witnessed some profit booking across the cryptocurrency spectrum. After Bitcoin’s fantastic run above $42,500, this profit booking was quite expected, said Edul Patel, CEO and co-founder of Mudrex.
“As BTC fell, the rest of the market followed suit. However, bulls remained active on ETH. With anticipation building up, ETH would be the crypto to watch out for. Profit booking is likely to continue for the next 24 hours,” he added.
China’s central bank vowed to maintain heavy regulatory pressure on cryptocurrency trading after escalating its clampdown in the market earlier this year.India’s anti-money laundering agency is examining if Binance Holdings had a role in an ongoing investigation involving betting apps. The Enforcement Directorate has summoned Binance executives for questioning and is awaiting a response.
Ethereum, the second-largest blockchain network, is about to undergo a technical adjustment that will significantly alter the way transactions are processed as well as reduce the supply of the ether token and sharply boost its price. The scheduled coding revamp will go live on August 4.
Tech View by Siddharth Menon, COO WazirX BitcoinAs per DOW theory, Bitcoin was in a downtrend during the last 3 months. Chart shows that the lower high is broken and this could be a potential trend reversal from here. Relative strength Index (RSI) is trading above 60 on a daily timeframe, which indicates strength in buying momentum.
If RSI sustains above 60, we may see the rally continuing for a couple of weeks, else Bitcoin may consolidate for some more time before it makes its next move.EthereumEthereum continues to be strong against Bitcoin which is a positive sign for Alt coins. DEFI, NFT and GAMEFI tokens may do extremely well in coming weeks as there is a lot of growth seen in this space when the markets are correcting.
As per the onchain data, ETH supply on exchanges have drained. Supply staked in ETH 2.0 validators is increasing, this could lead to a supply squeeze. Market sentiments seem to have changed from fear to neutral within a week’s time.(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the asset/s mentioned.)