Bitcoin, Ethereum, Dogecoin Rally Halts As Chinese Data Disappoints: Are Investors Already Engaging In Profit-Taking?


Bearish sentiment kept major coins lower Monday night as the global cryptocurrency market cap fell 1.05% to $1.15 trillion at the time of writing.

Price performance of major coins
Coin 24 hours 7 day Price
Bitcoin BTC/USD -1% 0.8% $24,020.13
Ethereum ETH/USD -2.4% 5.8% $1,868.18
Dogecoin DOGE/USD -4% 9.5% $0.08

Top 24-Hour Gainers (Data via CoinMarketCap)
cryptocurrency 24-hour % change (+/-) Price
Chiliz (CHZ) +8.8% $0.20
STEPN (GMT) +7.5% $1.05
UNUS SED LEO (LEO) +5.8% $5.40

Also see: Best crypto debit cards

Bitcoin and Ethereum Shares followed lower at press time as S&P 500 and Nasdaq futures flattened and fell marginally into negative territory, losing the day’s gains.

Stock market sentiment was marred by weak economic data from China. Industrial production in July was 3.8% below the forecast of 5%. In an unexpected move, the Chinese central bank cut interest rates by 10 basis points.

“Overnight China economic data has been very disappointing to say the least. Combined with Friday’s lending data, it doesn’t provide a good picture of domestic demand or the growth outlook,” he said. Craig Erlama senior market analyst at OANDA.

“Bitcoin has tested the water above $25,000 and pushed back on the first try. It appears that the cryptocurrency, like many other instruments, is testing a potentially significant barrier after its recent recovery and we may see some profit taking Erlam wrote in a note seen by Benzinga.

However, there is a silver lining. GlobalBlock Analyst Marcus Sotiriou noted data from bank of America that indicates that consumer spending in the United States is not declining.

“This is evidenced by online retail spending still positive year over year, spending on leisure services increasing and median account balances remaining significantly higher than in 2019.”

“However, if we consider debt service payments as a percentage of personal disposable income, which is remarkably lower than the levels of the dotcom bubble, the Global Financial Crash and 2020, we can see that consumers are in a healthy position,” he wrote. Sotiriou.

Investors will take stock of US retail sales on Friday. The minutes of the recent Federal Open Market Committee meeting will be released on Wednesday.

Cryptocurrency Trader Justin Bennett said he is cautious about cryptocurrencies as he tracks the dollar index, a measure of the dollar’s strength against a basket of six currencies.

The dollar index rose 0.02% to 106.57 at press time. Bennett said if it sustains the 106.5 levels, he expects “risky assets to come under pressure.”

In the meantime, Michael van de Poppe said Bitcoin is “consolidating a bit” after quite a run over the past week amid profit-taking. He said a “bear mindset is still key.” The cryptocurrency trader pointed to the $23,800 and $23,000 as the key levels to watch for when it comes to longs.

Bitcoin’s supply has undergone a “significant transfer of wealth” in recent months, said on-chain analytics firm Glassnode in a recent blog post.

While long-term holder (LTH) supply has seen a “modest decline” following the collapse of Terra Classic (LUNC), the range remains bound.

The Total Supply of Bitcoin in the Hands of LTHs – Courtesy of Glassnode

This points to limited spending by a subgroup rather than a broad loss of trust, Glassnode said.

On the other hand, short-term holders experience a divergence between BTC and dollar-denominated assets.

STHs, 30 Day Position Change – Courtesy of Glassnode

“This is indicative of a pool of buyers who have entered the lows and now have a number of buyers on their hands.” [300,000 BTC]acquired at a much lower cost basis,” Glassnode wrote.

Read next: Is Bitcoin poised to regain a key psychological level of $25,000? Here’s what to watch

The Valley Voice
The Valley Voice
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.


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