Decentral Block Post

Bitcoin (BTC) has been lingering above $20,000 for the past nine days, but worsening conditions from traditional markets are causing traders to doubt if the support will hold.

On Nov. 3, the Bank of England raised interest rates by 75 basis points to 3%, its largest single hike since 1989. The risks of a prolonged recession also increased as the Monetary Policy Committee struggled to contain inflationary pressure.

The U.K. monetary authority noted that its most recent growth and inflation projections present a “very challenging” outlook for the economy. The statement from the committee added that “high energy prices and tighter financial conditions weigh on spending,” thus negatively pressuring the employment data.

The U.S. Federal Reserve also hiked interest rates on Nov. 2, the fourth consecutive raise, which brings rates to the highest levels since January 2008. The confirmation of a conservative approach from central banks can partially explain why Bitcoin failed to break the $21,000 resistance on Oct. 29 and has since declined by 4.5%.

Let’s take a look at derivatives metrics to better understand how professional traders are positioned in the current market conditions.

Bitcoin (BTC) lingered lower on Nov. 3 as the aftermath of the Federal Reserve interest rate hike subsided.

Trading range forms with $20,000 at center

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hovering just above $20,000 on the day.

The pair had seen flash volatility as the Fed hiked 0.75%, with fakeout moves up and down triggering liquidations both long and short.

Cross-crypto liquidations for the past 24 hours at the time of writing totaled $165 million, data from Coinglass confirms.

Bitcoin ultimately finished slightly lower than its pre-Fed level, an area that continued to hold on the day as analysts awaited fresh cues.

After an impressive 23.7% rally between Oct. 25 and Oct. 31, Binance Chain BNB, has faced a strong rejection from the $330 resistance. Is it possible that the two-day 6% sell-off from the $337.80 peak could indicate that further trouble is ahead?

Let’s take a look at what the data shows.

Analysts pinned the recent rally to the Oct. 28 news that Binance had invested $500 million in Twitter. However, the network's deposits and decentralized applications metrics have not accompanied the improvement in sentiment.

The strong upward movement was largely based on reports that Binance was preparing to assist Twitter in eradicating bots. The speculation emerged after billionaire Elon Musk raised the $44 billion required to complete his purchase of the social media platform.

In absolute terms, BNB's year-to-date performance reflects a 40% decline, but it ranks ahead of competitors as Ether (ETH) is down by 59%, Solana (SOL) 82% and Polygon (MATIC) registers a 79% correction.

After an impressive 23.7% rally between Oct. 25 and Oct. 31, Binance Chain BNB, has faced a strong rejection from the $330 resistance. Is it possible that the two-day 6% sell-off from the $337.80 peak could indicate that further trouble is ahead?

Let’s take a look at what the data shows.

Analysts pinned the recent rally to the Oct. 28 news that Binance had invested $500 million in Twitter. However, the network's deposits and decentralized applications metrics have not accompanied the improvement in sentiment.

The strong upward movement was largely based on reports that Binance was preparing to assist Twitter in eradicating bots. The speculation emerged after billionaire Elon Musk raised the $44 billion required to complete his purchase of the social media platform.

In absolute terms, BNB's year-to-date performance reflects a 40% decline, but it ranks ahead of competitors as Ether (ETH) is down by 59%, Solana (SOL) 82% and Polygon (MATIC) registers a 79% correction.

Polygon (MATIC) emerged as the best-performing asset among the top-ranking cryptocurrencies on Nov. 3 as the market's attention turned to the latest Instagram and JPMorgan announcements.

Polygon in high-profile partnerships

Notably, Meta, the parent company of Instagram, named Polygon as its initial partner for its upcoming nonfungible token (NFT) tools that allow users to mint, showcase, and sell their digital collectibles on and off the social media platform.

Meanwhile, banking giant JPMorgan used Polygon to conduct its first live trade (worth about $71,000) on a public blockchain, marking a concrete step toward integrating cryptocurrencies into the traditional financial frameworks. 

MATIC, a utility and staking token within the Polygon blockchain ecosystem, rose over 13% to $0.985 after the announcements, accompanied by an uptick in daily trading volume.

Polygon's upside move came as a part of a broader recovery rally across the crypto sector that started in mid-June. MATIC's price has rebounded by more than 200%, a trend that will likely sustain in the coming months.

Polygon (MATIC) emerged as the best-performing asset among the top-ranking cryptocurrencies on Nov. 3 as the market’s attention turned to the latest Instagram and JPMorgan announcements.

Polygon in high-profile partnerships

Notably, Meta, the parent company of Instagram, named Polygon as its initial partner for its upcoming nonfungible token (NFT) tools that allow users to mint, showcase and sell their digital collectibles on and off the social media platform.

Meanwhile, banking giant JPMorgan used Polygon to conduct its first live trade (worth about $71,000) on a public blockchain, marking a concrete step toward integrating cryptocurrencies into traditional financial frameworks. 

MATIC, a utility and staking token within the Polygon blockchain ecosystem, rose over 13% to $0.985 after the announcements, accompanied by an uptick in daily trading volume.

MATIC’s upside move came as a part of a broader recovery rally across the crypto sector that started in mid-June. MATIC’s price has rebounded by more than 200%, a trend that will likely sustain in the coming months.

The price of Litecoin (LTC) could skyrocket by up to 200% by July 2023, coinciding with its halving event, reducing miner block rewards by 50%.

Litecoin has bottomed out?

Litecoin has undergone two halvings since its launch in October 2011. The first one occurred in August 2015, which reduced its block reward from 50 LTC to 25 LTC. The second happened in August 2019, which slashed the 25 LTC reward to 12.5 LTC.

Interestingly, each Litecoin halving event occurred after a volatile LTC price cycle, namely an enormous price pump, followed by a similarly massive correction, a price bottom, and recovery to a local top.

After the Litecoin halvings, LTCs' price corrected from its local top, established another bottom, and followed it with another massive price rally to a new record high, as shown below,

Litecoin's third halving is scheduled to occur sometime in July 2023. Meanwhile, market analysts are already pointing out that LTC's price is undergoing the same pre-halving trajectory as before the 2011 and 2019 events, now in the bottoming-out stage.

The price of Litecoin (LTC) could skyrocket by up to 200% by July 2023, coinciding with its halving event, reducing miner block rewards by 50%.

Litecoin has bottomed out?

Litecoin has undergone two halvings since its launch in October 2011. The first one occurred in August 2015, which reduced its block reward from 50 LTC to 25 LTC. The second happened in August 2019, which slashed the 25 LTC reward to 12.5 LTC.

Interestingly, each Litecoin halving event occurred after a volatile LTC price cycle, namely an enormous price pump, followed by a similarly massive correction, a price bottom, and recovery to a local top.

After the Litecoin halvings, LTC’s price corrected from its local top, established another bottom and followed it with another massive price rally to a new record high, as shown below,

Litecoin's third halving is scheduled to occur sometime in July 2023. Meanwhile, market analysts are already pointing out that LTC's price is undergoing the same pre-halving trajectory as before the 2011 and 2019 events, now in the bottoming-out stage.

Bitcoin (BTC) sellers may not have capitulated enough, but current trends are “typical” of the end of bear markets.

According to data from on-chain analytics firm Glassnode, seller behavior suggests that a macro price bottom is forming.

Analyst: Seller exhaustion is “near” bear market lows

In the latest hint that Bitcoin’s latest bear market is nearing its end, Glassnode has revealed that the network is currently weathering a “perfect storm” of low volatility and high on-chain losses.

The Seller Exhaustion Constant, calculated from one-month rolling volatility and on-chain transaction profitability, is thus at long-term lows of its own.

As a Twitter post explains, such lows are rare, having only appeared seven times before. Six of those times, upside volatility resulted, implying that Bitcoin could soon put an end to its bearish trend.