Crypto Market Showing Signs Of Rebound

Crypto market showing signs of rebound after a very tough stretch. 

Covered:

  • Overall Crypto Market Showing Signs Of Strength
  • Open Interest/Max Pain

Overall Crypto Market Showing Signs Of Strength

The crypto market is up over 2% in total global market cap in the last 24 hours. The overall market has rebounded nicely from Wednesday where total cap fell as low as $673 billion USD. The global market cap is currently in the $721 range.

The good news too is that despite everything that’s going on (interest rates, inflation, Ukraine war, “Sell in May”), the crypto market isn’t hitting year long lows. Back in June 2021, the overall market cap fell as low as $ 622 billion, which is significantly below the recent low the market bounced off of ($636 billion on May 12th).

Meanwhile, Bitcoin is only up 2% trading in the $30,250 range, and the Batman to its Robin Ethereum is up only 4% and trading in the $2,040 range. Leading the way are altcoins like Ethereum DeFi-based projects Kyber Network (up 23%) and 0x (up 22%), and interoperability platform Cosmos.

Open Interest/Max Pain

Of note, Bitcoin “Open Interest” is higher for next week’s final Friday of the month, albeit not much higher. Currently, as it stands, the max pain price for Bitcoin is $34,000. That’s not an incredibly high price, but I’m sure most would welcome it after Bitcoin languished in the 28k range for a good chunk of this week.

Max pain price has been invalidated as a definitive predictor of price action. However, it’s a decent gauge of sentiment. Especially in this case it’s worth noting there are still some optimists in the market — and again albeit marginally optimistic ones — going “long” compared to the current price.

It will be worth following how Open Interest adjust once the Terra FUD is out of the way — their for is expected shortly because of its governance “proposal” more than likely to pass.

Recommended: Strong Bitcoin On-Chain Data Provides Needed Hopium

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