Edward Moya\u00a0<\/strong>said in a note that the macro backdrop \u201ckeeps getting uglier\u201d amid escalation in the Russia-Ukraine conflict and growing fears of recessions.<\/p>\n\u201cCryptos remain stuck in a trading range as basically everyone on Wall Street awaits one last major decline with U.S. stocks. Bitcoin remains anchored but long-term fundamentals remain supportive for a major rally once stagflation risks have eased,\u201d said Moya. \u201cBitcoin is holding onto the $19,000 level but if the selloff on Wall Street intensifies, bearish momentum could target just ahead of the $18,150 support level.\u201d<\/p>\n
Arcane Research<\/strong>, which provides curated cryptocurrency market reports, said investors should be careful amid \u201cballooning\u201d leverage.\u00a0<\/p>\nArcane analyst\u00a0Vetie Lunde\u00a0<\/strong>said in a blog that \u201cLeverage is going full-on parabolic in the crypto derivatives market, as BTC remains in a very directionless state.\u201d<\/p>\nThe analyst said the current open interest was \u201cwell blown above any levels that may be assessed as sustainable.\u201d<\/p>\n
Bitcoin Open Interest \u2014 Courtesy Arcane Via Laevitas<\/em><\/p>\nOn Bitcoin, the analyst said that once the Federal Reserve<\/strong> has reached an \u201cappropriate restrictive interest rate level\u201d and inflation simmers down, the apex cryptocurrency may again \u201cfind room to see a substantial recovery.\u201d<\/p>\nA note by Glassnode<\/strong> said that there may be \u201cseveral months\u201d ahead before a full recovery can be seen in Bitcoin prices, despite the apex coin showing some relative strength of late amid a volatile traditional market setup.<\/p>\n\u201cIn many ways, many on-chain metrics, market structure, and investor behavior patterns are dotting of the i’s, and crossing the t’s for a textbook bear market floor,\u201d said the on-chain analysis firm.<\/p>\n
Glassnode said it had noticed \u201crelative neutrality\u201d across small to medium-address cohorts when it came to the accumulation of Bitcoin. It said the Accumulation Trend Scores for whales holding 1000-10,000 BTC, however, highlights aggressive accumulation since late September.\u00a0<\/p>\n
Whales that hold over 10,000 BTC are biased towards weak distribution over recent months, according to Glassnode.<\/p>\n
Accumulation Trend Score By Cohort \u2014 Courtesy Glassnode<\/em><\/p>\nThe company said that large entities particularly the 1,000-10,000 BTC wallets contributed to a distribution event during a rally off lows in March 2019, while small-retail level participants with less than 1,000 BTC maintained heavy accumulation throughout 2018 and 2019.<\/p>\n
Meanwhile, the percentage of discussions related to Bitcoin among the top 100 assets is just at 12.8%, tweeted Santiment<\/strong>.\u00a0<\/p>\n