Most fear since SVB collapse — 5 things to know in Bitcoin this week

Popular trader and analyst Miles Johal was likewise hopeful, noting that unlike stocks and Bitcoin, U.S. dollar strength dealt with an uphill struggle. Speculators were on the getting end of most of the discomfort this time around, with Bitcoin currently trading below the cost basis, or recognized rate, of short-term holders (STHs)– entities holding BTC for under 155 days.Bitcoin hodler cohort recognized cost chart.” Bitcoin sell off and everybody is shouting 10k,” it summarized at the weekend, commenting on a comparative chart of price action in the existing halving cycle versus its previous one.

” In the entire history of Bitcoin, there were 11 times when Open Interest had a similar decline as three days ago. Bitcoin, they argued, may now open the door to a new phase of rangebound trading. Popular trader and analyst Miles Johal was likewise confident, noting that unlike stocks and Bitcoin, U.S. dollar strength faced an uphill struggle. Speculators were on the receiving end of most of the discomfort this time around, with Bitcoin currently trading listed below the expense basis, or understood rate, of short-term holders (STHs)– entities holding BTC for under 155 days.Bitcoin hodler mate understood rate chart.” Bitcoin offer off and everyone is shouting 10k,” it summed up at the weekend, commenting on a relative chart of cost action in the present halving cycle versus its previous one.

Traders and analysts, nevertheless, have their eyes primarily set on Jerome Powell, Chair of the Federal Reserve, who will take to the phase at the annual Jackson Hole Economic Symposium on Aug. 25. With both the Nasdaq and S&P 500 joining crypto in a week of losses, historic patterns could still turn the tables as Jackson Hole typically supplies risk-on relief.More often than not, stocks increase the week after Jackson HoleWill this year follow the pattern, or will it be one of the outlier years with a sell-off?

Information from keeping an eye on resource CoinGlass puts August 2023 losses at -10.8% as of Aug. 21. Source: CoinGlassThis short article does not include investment advice or suggestions.

On weekly timeframes, trader Skew detailed upside, drawback and combination scenarios all being possible.” Consolidation situation is chopping in between $25K & &$ 30K ~ long term range,” he validated together with an illustrative chart.BTC/ USD annotated chart. Source: Skew/XKey timing for Powells Jackson Hole speechWhile recently was peaceful in terms of United States macroeconomic data releases, the coming five days assures a key modification of tempo.U.S. out of work claims will strike on Aug. 24, with home sales and other information preceding them.” Volatility is officially back,” monetary commentary resource The Kobeissi Letter summed up to X subscribers.Key Events This Week:1. Existing Home Sales data – Tuesday2. US Services PMI data – Wednesday3. New Home Sales information – Wednesday4. Core Durable Goods information – Thursday5. Initial Jobless Claims – Thursday6. Fed Chair Powell Speaks – FridayVolatility is formally back.– The Kobeissi Letter (@KobeissiLetter) August 20, 2023

Bitcoin (BTC) starts a brand-new week with traders licking their injuries after a 10% snap crash.BTC price action is struggling to recover from a manic end to the days prior to the weekend, and the worry is palpable entering into what could end up being a similarly unstable few days.With $26,000 so far forming the focus for the markets, theories are brewing over where Bitcoin may head next.Multiple factors are set to converge to offer some influence– United States macro data prints are shooting up again, while the Federal Reserve will deliver key commentary on the economy at the annual Jackson Hole Economic Symposium.Within Bitcoin, on the other hand, short-term holders now face increasing unrealized losses, and on-chain transactions in loss are setting multi-year highs.Sentiment is back on the flooring, but is the worry really justified?Cointelegraph has a look at these topics and more ahead of what assures to be an interest week for crypto markets.BTC order book “ghost town” after OI obliteratedWhile numerous anticipated volatility to begin around the Aug. 20 weekly close, Bitcoin in the end produced something of a non-event, information from Cointelegraph Markets Pro and TradingView programs, with $ 26,300 topping the extent of its upside.A subsequent comedown took the marketplace back to the $26,000 mark, where it traded at the time of writing.BTC/ USD 1-hour chart. Source: TradingViewAfter a week of trouble, traders and analysts alike stayed extremely mindful on the outlook, with sources referencing various triggers for new downside.” Traders still startled, expecting more drawback,” trading suite Decentrader composed in an X update on Aug. 21. Decentrader kept in mind that traders were located short throughout exchanges after a major open interest wipeout during recentlys drop.” Funding rates continue to be negative,” it added.Maartunn, a factor to on-chain analytics platform CryptoQuant, explained Binance order book liquidity as a “ghost town.”” This will unlock for volatility, in case youve missed it,” he suggested, alongside a chart revealing liquidity and whale order volumes from monitoring resource Material Indicators.BTC/ USD order book information and whale volume for Binance. Source: Maartunn/XMaartunn nevertheless reasoned that benefit might come as an outcome, offered historical precedent.” In the whole history of Bitcoin, there were 11 times when Open Interest had a similar decrease as 3 days earlier. Among these eleven, 8 led to increased rates, whereas three did not,” part of a different analysis stated.As Cointelegraph reported, brief and in general long liquidations reached levels similar to the consequences of the November 2022 FTX implosion.Bitcoin traders weigh “debt consolidation scenario” The peaceful weekend offered some traders stop briefly for thought. Bitcoin, they argued, may now unlock to a new stage of rangebound trading.” Bitcoin fell off back into the previous range. More than likely outcome for next week is to keep trading the range imo,” popular trader CrypNuevo told X subscribers. “I wish to see a false relocation to the downside to $25700-$ 25800 on Monday and after that a relief bounce the remainder of the week till mid-range $27k.” BTC/USD annotated chart. Source: CrypNuevo/XFellow trader Crypto Tony eyed a recover of the weekends $26,300 local top as a call to action.” Until then i am resting on hands awaiting Bitcoin next relocation,” he concluded.Maartunn also acknowledged that a consolidation duration for BTC/USD was “not unlikely.” Another possible scenario for #Bitcoin is a period of consolidation.This is not unlikely, as we have actually experienced such combination multiple times in the past following significant market movements.https:// t.co/ pfl62msjJm pic.twitter.com/1jeRb6eJfL— Maartunn (@JA_Maartun) August 20, 2023

Other Questions People Ask

What are the key concerns for Bitcoin following the SVB collapse this week?

This week, the most pressing fears surrounding Bitcoin stem from its recent price action, which has seen it trading below the cost basis of short-term holders. As speculators face significant unrealized losses, the market sentiment is notably bearish. Additionally, with the upcoming Jackson Hole Economic Symposium, traders are anxious about potential volatility influenced by Federal Reserve Chair Jerome Powell's remarks.

How is Bitcoin's performance being affected by macroeconomic factors this week?

Bitcoin's performance this week is closely tied to macroeconomic data releases, including jobless claims and home sales figures. These indicators could influence market sentiment and volatility, especially as traders anticipate comments from Jerome Powell at the Jackson Hole Symposium. The current environment suggests that Bitcoin may enter a phase of rangebound trading, with key price levels around $25K and $30K being watched closely.

What does the current Bitcoin sell-off indicate about market sentiment?

The current Bitcoin sell-off reflects a heightened sense of fear among traders, particularly as many are calling for a potential drop to $10K. This sentiment is exacerbated by the fact that short-term holders are experiencing significant unrealized losses. As on-chain transactions in loss reach multi-year highs, the market is bracing for further volatility in the coming days.

What trading scenarios are analysts predicting for Bitcoin this week?

Analysts are predicting several possible trading scenarios for Bitcoin this week, including upside, downside, and consolidation phases. With the recent wipeout of open interest, many traders are positioned short, indicating a cautious outlook. Historical patterns suggest that after similar declines in open interest, there have been instances of price recovery, which traders will be keenly observing.

How might the Jackson Hole Economic Symposium impact Bitcoin this week?

The Jackson Hole Economic Symposium is expected to significantly impact Bitcoin's price action this week. Traders are particularly focused on Jerome Powell's speech, which could provide insights into future monetary policy and economic conditions. Historically, markets have reacted positively in the week following Jackson Hole, raising questions about whether this trend will continue or if a sell-off is imminent.