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4 Hidden Signs the Crypto Market Is About to Shift
Don’t Take Action Until You Know What’s Really Happening
Let me take you back a few years.
Bitcoin was soaring, and everyone was piling in. I was one of them.
But then, the market took a nosedive, and I was left staring at my losses, asking myself, “What the hell just happened?” It wasn’t just about losing money—it was about missing the signs.
From that point on, I vowed never to be blindsided again. Today, I’m going to share the kind of insights you won’t get from the usual crowd-pleasers.
If you've been keeping an eye on Bitcoin lately, you’ve probably noticed the warning signs.
Bitcoin’s price dropped by 2.2%, and its open interest (OI) plummeted by 7.5%.
Bitcoin recently experienced a sudden market shakeout, erasing $120M in open interest as the market recovered from the week-long sideways movement. Source: CoinGlass
But what does this mean for you, the investor who’s not here to play games?
Let’s break it down.
This isn’t just market fluff—this is about protecting your investments and seeing through the manipulation that others won’t talk about.
Why Should You Care About Open Interest?
Open Interest isn’t just another number to glance at—it’s the pulse of the market.
When Bitcoin’s OI drops by 7.5%, from $12.42 billion to $11.487 billion, that’s not just some traders adjusting their portfolios.
Bitcoin’s Open Interest Decline: Source: Santiment
It’s a big red flag.
Traders are closing positions because they smell something off.
The confidence in Bitcoin’s short-term outlook is crumbling, and if you’re not paying attention, you’re going to get caught in the crossfire.
What This Means: This is your wake-up call. Reassess your positions because increased volatility is coming. Don’t just sit there thinking everything will blow over. It won’t.
The Shift to Altcoins
While Bitcoin’s OI is taking a hit, altcoins like Ethereum and Solana are barely flinching.
Ethereum’s OI dipped only 2.3%, from $5.41 billion to $5.283 billion, and Solana saw a mere 2.0% drop, from $2.063 billion to $2.022 billion.
The mainstream narrative?
“Diversify into altcoins for stability.”
My take?
This is where the market manipulators want you to go.
What This Means: Diversifying into altcoins might sound smart, but ask yourself—are you moving with the crowd, or are you thinking critically? The market is playing you, and if you don’t question the narrative, you’re just another pawn.
The Role of Short-Term Holders
Sellers have become active
"Short-term holders transferred 33,155 bitcoins as shown by the 1w-1m spent output age bands. This could present immediate selling pressure." – By @XBTManager
Read more 👇
cryptoquant.com/insights/quick…— CryptoQuant.com (@cryptoquant_com)
10:32 PM • Aug 26, 2024
33,155 Bitcoins have been transferred between the 1-week and 1-month age bands.
Translation?
Short-term holders are jumping ship.
Why?
Because they see the writing on the wall.
This isn’t panic—this is smart money getting out before the rug is pulled out from under everyone else.
What This Means: If you’re still holding onto your Bitcoin thinking this is just a dip, think again. This is the time to be strategic, not emotional. Panic selling isn’t the answer, but neither is blind optimism.
Caution Among Big Players
And then there are the whales.
These aren’t your average traders; these are the market movers.
Inflows from large holders have dropped by 38% in the last week, after a ridiculous 1,385% surge in the past month.
BTC Large Holders Inflow. Source: IntoTheBlock
What does that tell you?
They’re not just cautious—they’re planning their next big move while you’re left guessing.
What This Means: When the big players are sitting on the sidelines, you better believe something’s brewing. This is the time to watch the market like a hawk. Don’t make a move unless you know exactly what you’re doing.
My Take on the Market
Let’s cut through the BS.
The drop in Bitcoin’s open interest, the subtle shift to altcoins, the behavior of short-term holders, and the caution among whales all point to one thing:
Uncertainty and Manipulation.
The market is being played, and if you’re not careful, you’ll be the one getting played.
Positive or Negative: Let’s not sugarcoat it—it’s mostly negative.
The drop in Bitcoin’s OI and the panic among short-term holders are clear signs that the market is unstable.
The so-called “shift to altcoins” might be a distraction, and the cautious behavior of whales screams volatility ahead.
In short, be careful—a big wave might be coming soon.
If the pros aren’t sure where the market is heading, don’t pretend you know either.
Sometimes, doing nothing is the smartest move.
Let’s watch the market’s next move closely before deciding what comes next.
What’s the Takeaway?
Here’s the bottom line: don’t react impulsively to market changes.
The goal isn’t to react; it’s to act with purpose. Stay sharp, stay informed, and don’t let the market pull you around by the nose.
If you’re serious about making money in this game, you need to think critically and stay ahead of the curve.
If you found this article useful and want more no-nonsense insights like these to help you navigate the crypto market, subscribe to our newsletter, Crypto Profit 101.
Stay ahead of the game and make informed decisions that could make all the difference.
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