The crypto market rebounded slightly on Tuesday and showed signs of buying activity returning to the market, in contrast to a weak US stock market today. The global crypto market cap is at $2.04 trillion, pared the earlier 1.50% increase over the last day.
Historically, September has been a bearish month for the crypto as well as for the other asset classes. Currently, the market sentiment points to “fear” among investors, with the Fear & Greed Index dropping to 26 today from 48 (neutral) last week.
Crypto Market Flashes Signs of Bearishness
QCP Capital predicts the downtrend of the crypto market to gradually fade in September itself. This is based on historical data of the strongest bullish seasonality in October. Bitcoin price has recorded positive returns and an average gain of 22.9% in 8 out of 9 times in October month historically.
Despite the September bear sentiment, the seasonality play has led to consistent call buying in the volume market. QCP reveals that the trading desk observed another 150x $80K calls for December lifted today.
“If this pattern plays out again this year, it would be strategic to accumulate during the September dip and take profits in October or toward the year-end.”
This is why the total BTC futures open interest saw a 1% increase in the last 24 hours despite negative sentiment. While the buying on CME remains dull, futures demand on exchanges like Binance, Bybit, and OKX remains intact, as per Coinglass data. This indicates derivatives traders are still buying while remaining cautious due to uncertainty in the crypto market.
Source: Coinglass
Bitcoin Drops After US ISM Manufacturing PMI Data
US stocks extended losses on Tuesday, with all three major indexes falling more than 1% after the ISM Manufacturing PMI showed factory activity slowed for a fifth consecutive month. ISM Manufacturing PMI came in at 47.2 in August, missing market expectations of 47.5.
As CoinGape reported Bank of Japan Governor Kazuo Ueda affirmed that the central bank will raise interest rates further. Two-thirds of economists surveyed pointed to a rate hike by the BOJ by the end of the year. Notably, 41% of economists anticipate the rate hike in December.
Coinglass data shows more than $100 million were liquidated across the crypto market amid this selloff. Of these, $66 million long positions were liquidated and nearly $44 million short positions were liquidated on Tuesday.
Over 40K traders were liquidated and the largest single liquidation order happened on crypto exchange Binance as someone sold ETH for USDT valued at $1.84 million.
BTC price struggles to break above $60,000 amid uncertainty in the crypto market. BTC has pared today’s gains, falling to the intraday low of $57,568. Furthermore, the trading volume has decreased by 10% in the last 24 hours, indicating a decline in interest among traders.
An important observation on the #Bitcoin 2-month chart: the Stochastic RSI has just signaled a trend reversal from bullish to bearish. Historically, in the past 10 years, this has preceded a significant correction of around 75.50%! pic.twitter.com/YxlwMFxTEl
— Ali (@ali_charts) September 3, 2024
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