Bittime - Ansem, a renowned crypto trader, provides an updated view on the current state of the crypto market. According to him, large coins such as Ethereum (ETH) will likely continue to consolidate (move horizontally), while meme coins have the potential to experience price increases.
ETH Analysis and Short Hedging Strategy
Ansem highlighted the existence of a short hedging strategy that is currently dominating ETH movements. This strategy is carried out by opening a short (selling) position while preparing reserve funds (hedging) to anticipate potential price increases.
According to Ansem, if the price of ETH manages to penetrate the $4,100 level on a weekly basis, then the crypto market as a whole has the opportunity to experience a sharp increase. Conversely, if ETH fails to break through this level, the crypto market is expected to continue to fluctuate. This condition can be detrimental to investors who take long (buy) positions.
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Confirmation of ETH Increase
Ansem emphasized the importance of confirming the increase in ETH prices through purchases from the spot market (cash market). He observed that the previous ETH price spike was accompanied by a drastic increase in Open Interest (OI) in the derivatives market (futures and perpetual).
Ansem said that if there is no aggressive buying on the spot market after ETH's upward movement, the price has the potential to fall again and harm many parties.
Crypto and ETH Markets Influenced by Bitcoin
Ansem also analyzed Bitcoin (BTC) movements as an indicator of the overall strength of the crypto market. He observed that BTC prices have now fallen below the lows when Bitcoin ETF approval estimates reached 75%.
BTC price movements indicate that the overall crypto market may be weaker than expected. He is also not so sure that the ETH/BTC pairing will experience a sharp increase soon.
Also Read How to Buy Crypto:
Reasonable Correction and ETH Target
Ansem admitted that he was among those who were optimistic about the crypto market throughout the last week. However, he highlighted the lack of follow-up to these positive sentiments.
Initially he estimated that the current prices of ETH and BTC would be in the range of $4,100 and $75,000. However, if ETH manages to break through the $4,100 level with apparent strength, then the predictions could be wrong.
It is important to note that Ansem is not predicting an overall crypto cycle top, but rather a local top (short-term rise) for ETH.
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How to Buy Crypto with Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
Also Read:
Crypto Market Today 28 May 2024
Crypto Market Still in Bullish Trend, Bitcoin Predicted to Rise in Early June
What is Crypto Market Capitalization and What are the Advantages and Disadvantages?
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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