The expected Consumer Price Index (CPI) report showed that Bitcoin (BTC) prices fell this week despite a rate hike from the US Federal Reserve, but high inflation remains a persistent problem. Interestingly, the negative market reaction to a higher CPI release seems to have been priced in by investors, with BTC and Ether (ETH) prices recovering all their intraday losses and closing the day in positive territory.
A quick look at Bitcoin's market structure shows that despite the drop in the Consumer Price Index, the price has continued to trade at the same level as it has for the past 122 days. Amid this spike, Cointelegraph market analyst Ray Salmond reported a unique situation where open demand for Bitcoin futures is at an all-time high and volatility is at an all-time low.
These factors, along with other indicators, have historically had explosive price movements, but history shows that predicting the direction of these movements is nearly impossible.
So, apart from some indicators that a decisive change in price is taking place, Bitcoin is still doing the same for the last 4.5 months. If so, it may be time to start looking for new trends and potential opportunities elsewhere.
Here is some information that has piqued my interest.
A new twist is coming
The price of ETH has lost its luster in the post-merger period and the asset now reflects the bearish trend that dominates other markets. Since the merger, ETH's price has fallen 30% from its peak at $2,000, and much of the hot money that inspired the merger buzz may now be in stablecoins looking for the next investment opportunity.
Despite ETH's inconsistent performance over the past four months, Cosmos (ATOM) snapped the market's slide, rising from $5.40 to $16.85. As discussed in detail on Cointelegraph, the hype surrounding Cosmos 2.0 and the silver price action seen in altcoins supported this, but these charts captured my imagination.
According to the revised Cosmos white paper, ATOM's current supply will be dynamically adjusted based on supply and demand. As shown in the chart above, when Cosmos 2.0 "launched" for the first 10 months, it was too much to issue a new ATOM token, but after the 36th month, the asset would be rejected.
From a technical analysis perspective, Cosmos 2.0 was buying hype a few months ago, selling news events, and ATOM prices seem to have reached local highs. As the market approaches its 20th month in the chart above.
Related: Price Analysis 14/10: SPX, DXY, BTC, ETH, BNB, XRP, ADA, SOL, DOGE, MATIC
Monitor Ethereum network activity
Since Ethereum's integration, the supply of Ethereum has fallen by 97%, and if the price drops significantly, in the coming months, investors will want to monitor activity on the Ethereum network, from ETH to decentralized finance (DeFi) related developments. institutional products. , as well as any gas emissions (associated with network activity).
If the market starts to change, the price may face downward pressure in the short term, but if the new trend favors the use of DeFi products, the price of ETH may respond positively to this development.
After the consolidation, BTC may remain the king of price action.
While new trends may emerge across various altcoins, it's important to remember the broader context in which crypto assets exist. The world economy is in crisis and high inflation is still a problem in the United States and many other countries. Bond prices fluctuate and a debt crisis occurs every day. Risk assets such as cryptocurrencies are highly volatile and even the strongest price trends (whether supported by fundamentals) are subject to macro factors such as the stock market, geopolitics and other market events that affect investor sentiment.
With this in mind, Bitcoin remains the largest asset by market cap in the crypto sector and any drastic movement in BTC's price will inevitably support or break any micro-trends that may be driving the market. Bitcoin price may still have a significant drop, so traders are advised to invest according to their risk appetite and some indicators may favor opening long positions in various crypto assets, it is too early to withdraw. Conclusion Do everything. Monkey Inn
This newsletter is written by Big Smokey, author of The Humble Pontificator substack and regular newsletter contributor to Cointelegraph. Every Friday, Big Smokey writes market reviews, trend guides, analysis and preliminary research on potential new trends in the cryptocurrency market.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Cointelegraph.com. Every investment and business activity carries risk, so you should do your own research when making a decision.