Crypto Market Dominance
Crypto Sentiment
The sentiment towards the cryptocurrency market has entered back into the “neutral
zone” after nearly four and half months and currently is at “46”.
Another data to evaluate the sentiment of the general public would be to look at Spent
Output Profit Ratio (SOPR). What is SOPR? In laymen terms, it indicates if people have
sold at a profit or if they sold at a loss. An SOPR value above 1 indicates that profit
booking dominated loss booking and below 1 indicates that loss booking dominated
profit booking. A value of 1 indicates that the coins were sold at their purchase price.
The Adjusted SOPR filters out transactions that are younger than 1 hour, thus,
clearing out noise from the metric.
The aSOPR for this week stands at 1.0 which means that the coins are being sold at
their purchase price. For a trend reversal the metric should stay and oscillate above 1.
Are we out of the Bear Market ?
The number of active addresses is directly proportional to the number of active users.
It is important to note that the number of active addresses doesn’t give the exact
number of active users as a user might have more than one address.
During a bull market, the number of active addresses increases tremendously and a
sharp fall is experienced as prices begin to fall showing weaker hands leaving the
market. Historically, we have seen the metric starts oscillating within a range after the
fall in the bear market and increases sharply as the market prepares to move out of
the bear phase. In the current market, the metric is moving sideways showing that the
market is sustained by the HODLers. We might see massive price movement once the
metrics start making higher highs.
Open Interest (OI) is defined as the number of open positions which includes both long
and short positions. An increase in OI means more contracts are being opened which
indicates more liquidity, volatility, and attention coming into the derivative market
whereas decrease in OI indicates less number of future contract or positions which
might trigger short/long squeeze.
OI has started showing increasing trend since July and has increased by 70% since the
last month. The increasing trend supports current price movement of Bitcoin price.
MVRV ratio is equal to the market capital divided by realized capital of Bitcoin. Realized
capital unlike market capital does not use the current market price, but rather uses the
prices each Bitcoin when they last moved.
Currently, the metric stands at 1.12. In the previous bear markets, we have seen that
the metric falls below 1 and oscillates below 1 for few days or months which mark the
bottom of the bear market. As the metric moves above 1, the trend reverses. Since, the
metric is above 1 and has started making higher lows, we can say that the market has
started moving out of the bear phase.
Stablecoin Supply Ratio (SSR) is the ratio of market cap of BTC divided by the market
cap of all stablecoins.
- Low SSR value indicates high Stablecoin Supply compared to that of BTC market
cap indicating potential buying pressure and possible price rise. - High SSR value indicates low Stablecoin supply compared to the market cap of BTC
indicating potential selling pressure and possible price fall.
Currently, SSR is near its bottom and has started making an upward movement which
means market has started moving away from its bottom.
Overall Market Performance
DOW JONES
Dow Jones Industrial Average gained nearly 3% during the past week closing in green
for the 6th straight week. The daily trend for Dow Jones is on the verge of breakout
from the megaphone pattern. The next resistance is expected at 34,700 level.
GOLD FUTURES
Gold Futures dipped below the $1,800 level last week, falling by just over 1%. The
monthly trend for Gold has formed a Cup & handle pattern. The next resistance is
expected at $1,840
BITCOIN
Bitcoin gained nearly 5% fin the past week. The 4-hourly trend for BTC is moving within
an ascending channel pattern making higher lows. The next resistance is expected at
$32.3K and key support is expected at $19K.
ETHEREUM
Ethereum against BTC closed positive for the 6th successive week, gaining 9%. The
weekly trend for ETH-BTC is moving within an ascending triangle pattern. The next
resistance is expected at 0.088.
Highlights of the week
Netherlands-based crypto investment firm Maven 11 has
launched its third lending pool on Maple Finance, giving
borrowers access to liquidity amid the bear market
Launch Cart, a rival to Shopify, integrates Lightning and
Bitcoin payments. The platform anticipates that by utilizing
spontaneous payments made through Bitcoin’s Lightning
Network will eliminate issues with fraud.
Nas Daily, the creator tech platform & Invisible college, will
enable $2,000 worth of courses that would cover topics such
as NFT investing, Community Building, Video Editing, and
Crypto fundamentals. Their goal is to become “The largest
web3 learning library on the internet.”
Our Pick of the Week
Gala (GALA)
We expect a gain of 15% from the Buy Price of 0.06930 USDT and
outperform BTC in the coming week
Target Achieved
Loopring (LRC)
LRC jumped by 12% in just a day and achieved our predicted target of
10%, outperforming Bitcoin which gained only 5% in the same period.
Get deeper insights into the crypto market’s weekly trends discussed on our Spotify podcast.
Start your Crypto Investments with XMINT Bots today