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3 Emerging Crypto Trends to Watch During Bitcoin Price Consolidation

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This week, Bitcoin (BTC) The price fell as a more-than-expected Consumer Price Index (CPI) report showed that high inflation remains an ongoing challenge Despite the wave of interest rate hikes by the US Federal Reserve. Interestingly, the negative market reaction to the high CPI print appeared to be appreciated by investors, BTC and Ether (ETH) Prices regained all their losses during the day to close the day in the black zone.

A quick look at the Bitcoin market structure shows that even as the CPI prints lower, the price continues to trade in the same price range it has been in for the past 122 days. Adding to this dynamic, Cointelegraph Market Analyst Ray Salmond Mentioned in a unique case The open interest of Bitcoin futures is at a record high, while its volatility is also near record lows.

These factors, along with other indicators, have historically preceded explosive price movements, but history will also show that predicting the direction of these movements is almost impossible.

So, regardless of multiple metrics indicating a decisive price move, Bitcoin is still doing more of the same it has done over the past 4.5 months. In that case, maybe it’s time to start looking elsewhere for emerging trends and possible opportunities.

Here are some of the data points I’m still fascinated with.

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ETH price has lost its luster in a post-consolidation era now, and the asset is now reversing the downtrend that is dominating the rest of the market. Since the merger, the price of ETH is down 30% from its high of $2000, and it is likely that a significant amount of speculative capital that supported the bullish consolidation narrative is now in the stablecoins looking for their next investment opportunity.

Aside from ETH being an asymmetric performer in the past four months, Cosmos (corn) also challenged the downtrend of the market by posting a massive rise from $5.40 to $16.85. As perfectly covered by Cointelegraph, oversold conditions combined with Hype from Cosmos 2.0supported by the bullish price action seen in the altcoin, but this chart still captures my imagination.

ATOM emissions table (old vs new). Source: Cosmos Hub

According to the revised Cosmos white paper, ATOM’s current supply will be dynamically adjusted based on its own supply and demand. As shown in the chart above, when Cosmos 2.0 launches in the first 10 months, the issuance of new ATOM tokens is high, but after the 36th month, the asset becomes a deflation.

ATOM/USDT 3-day chart. Source: TradingView

From a technical analysis point of view, ATOM price appears to have hit a local top as the months leading up to Cosmos 2.0 were a “rumor buy and sell news” type event, but it will be interesting to see what happens with ATOM price as the market approaches month 20 in the chart above.

Related: Price Analysis 10/14: SPX, DXY, BTC, ETH, BNB, XRP, ADA, SOL, DOGE, MATIC

Monitor Ethereum network activity

Ether emissions decrease after incorporation. Source: Delphi Digital

Since the Ethereum merger, Ether emissions have fallen by 97%, and while the price has fallen dramatically, over the coming months, investors may be watching Ethereum network activity, developments with ETH made via Decentralized Finance (DeFi) and institutional products, along with any gas booms (linked to network activity).

Ether supply dynamics. Source: Delphi Digital

While the price may succumb to downward pressure in the short term, if the market begins to turn and if new trends lead to increased use of DeFi products, the price of ETH is likely to be can react positively to those developments.

Bitcoin price action after the merger is likely to remain dominant

While New trends Across different alternative currencies that may emerge, it is important to remember the broader context in which crypto assets are located. Global economies are in a state of collapse, and persistently high inflation remains a problem in the United States and many other countries. Bond prices are falling, and the looming debt crisis is making its presence known on a daily basis. Risky assets like cryptocurrencies are incredibly volatile, and even the strongest price trends in crypto (whether backed by fundamentals or not) are subject to the whims of macro factors like stock markets, geopolitics, and other market events that affect investor sentiment.

With this in mind, Bitcoin remains the largest asset by market capitalization in the crypto sector, and any sharp moves from the BTC price will either support or dampen subtle trends that may be gaining momentum in the market. There is still the potential for a sharp drop in the price of Bitcoin, so traders are encouraged to calculate the size of the investment according to their own risk appetite, and while multiple metrics may support opening long long positions in different crypto assets, it is still too early to make a full purchase. . monkey in .

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This newsletter was written by Big Smokey, author of The Humble Pontificator Substack and Cointelegraph’s resident newsletter author. Every Friday, Big Smokey will write market insights, guides, analyzes and early bird research on potential emerging trends in the cryptocurrency market.