The open interest hasn’t increased as much during this Bitcoin price ascent as it has in the past, suggesting a decreased likelihood of a complete retrace.
In September, when Fed Chair Jerome Powell signaled that rates might be lowered, the price of Bitcoin surged above $64,000, surpassing its supply range of $59,000–$62,000. Analysts anticipate that Bitcoin will continue to rise to $70,000 and ultimately reach a new all-time high; however, there may be a few weeks of stabilization in between.
Bitcoin price consolidation
The lengthiest time it has taken to surpass a prior all-time high, the price of Bitcoin (BTC) has entered a phase of consolidation that will last for over six months. The fact that BTC rose at the highest rate to its all-time high prior to the April Bitcoin halving, however, indicates that the present consolidation period is effectively counteracting the previous sharp price increase.
Rekt Capital, a well-known cryptocurrency expert, emphasized that the re-accumulation period is still not the longest in the cycle. The reaccumulation from the previous year, which occurred in 2023 during the breakout’s creation, lasted for around 224 days.
According to Rekt Capital, if past trends continue, Bitcoin may peak in October 2024. This would be consistent with the usual post-halving price patterns, which point to a possible peak in late September 2024.
Bitcoin has been consolidating for almost 6 months
But this current ReAccumulation Range isn’t even the longest one in this cycle
From formation to breakout, the 2023 ReAccumulation lasted longer at 224 days
If history were to repeat, then Bitcoin would breakout in… https://t.co/nbVk8hAzj2 pic.twitter.com/FCaantr3zX
— Rekt Capital (@rektcapital) August 25, 2024
Following Powell’s rate decrease, inflows into spot Bitcoin ETFs also increased, indicating that institutional interest in Bitcoin is once again picking up momentum. QCP Capital analysts predict that the price of bitcoin will stay between $61,000 and $70,000 as markets await important reports like the US PCE inflation data and the US first unemployment claims for the week.
Furthermore, as implied volatilities (IVs) continue to fall across all main terms, the market has been rising on prospects of the rate decrease while reviving investor confidence.
BTC open interest data
The open interest in Bitcoin hasn’t increased dramatically after the rise on Friday compared to other times. This indicates a lower chance of an instantaneous complete retracement because there are currently fewer long holdings to push out.
Nonetheless, it will be crucial for the bulls to keep up their momentum this week since the prior local high of $62,800 is the crucial mark to retain.
#Bitcoin Friday’s move didn’t elevate Open Interest as much as it had done in the past.
Makes this less susceptable to one of those instant full retraces as there’s less longs to squeeze out.
Still, I think it’s key to hold on to the previous local high at ~$62.8K to keep the… pic.twitter.com/IZ3Hxxcjlz
— Daan Crypto Trades (@DaanCrypto) August 25, 2024
Telegram CEO’s arrest sparks movement; Justin Sun pledges $1M to FreePavel DAO
The popular messaging app Telegram’s CEO, Pavel Durov, was arrested, which shocked the bitcoin community. After being arrested by French authorities on charges of using Telegram to facilitate illicit activities, Durov is currently at the center of a contentious discussion over privacy and overreach by the government.
As a result, the cryptocurrency community has come together to back Durov and has emphasized the need of working together to ensure his release.
Uniting for freedom: Crypto leaders sound the alarm over Durov’s detetion
One of the most important people in the cryptocurrency space, Justin Sun, suggested creating a decentralized autonomous organization (DAO) to support Durov’s legal defense. He promised to donate $1 million to help the #FreePavel effort and urged the cryptocurrency community to come together under this flag.
“We should show the cryptocurrency industry’s unity by organizing a #FreePavel DAO to help Telegram founder Pavel Durov legally gain freedom,” Sun declared.
Many people have taken notice of his plan, and other prominent figures in the industry have endorsed it. For example, Ethereum co-founder Vitalik Buterin emphasized the wider consequences for software and free speech in Europe.
This is why we need open source, and formal verification of security properties.
— vitalik.eth (@VitalikButerin) August 25, 2024
In a similar vein, renowned IT systems specialist and privacy activist Edward Snowden denounced the detention. His argument was that it was against fundamental human rights.
The arrest of @Durov is an assault on the basic human rights of speech and association. I am surprised and deeply saddened that Macron has descended to the level of taking hostages as a means for gaining access to private communications. It lowers not only France, but the world.
— Edward Snowden (@Snowden) August 25, 2024
Resistance Dog (REDO) returns after Durov’s arrest
Durov’s detention has also sparked a new wave of the Resistance Dog movement, which stands for the opposition to censorship. In response to pressure from the Russian government in 2018, Durov created the Resistance Dog, or REDO, which is a dog wearing a hood. When the Russian government attempted to stop Telegram for not offering backdoor access to its encrypted conversations, this sign came to light during a crucial stalemate.
It serves as a potent symbol of rebellion and the ongoing fight for digital privacy today. Numerous initiatives within the TON ecosystem have changed their profile images and logos to include the recognizable REDO sign, including the well-known tap-to-earn game Yescoin.
The crypto assets connected to Telegram have also been severely hit by the arrest. The Open Network’s native currency, Toncoin (TON), had a precipitous decrease in value, falling as low as $5.31. The cryptocurrency is now trading at $5.72, having somewhat rebounded. On the other hand, the Resistance Dog movement’s REDO token, which is currently valued at $0.7789, has increased in value by nearly 173%.
Shiba Inu memecoin prepares to roll out DAO
With its upcoming DAO launch, Shiba Inu (SHIB) will provide all holders the ability to shape the destiny of the community.
The creators of the meme coin Shiba Inu (SHIB), which takes its cues from Dogecoin, are getting ready to introduce a decentralized autonomous organization (DAO).
Shiba Inu’s anonymous marketing head, Lucie, made the announcement via X on August 25 that SHIB holders will now be able to vote on new projects and influence the project’s future course.
“Shib is preparing to become a key player in decentralized governance with the upcoming launch of its DAO,” Lucie wrote. “This transition will empower every holder, regardless of the size of their stake, to have a say in the community’s direction.”
— 𝐋𝐔𝐂𝐈𝐄 (@LucieSHIB) August 24, 2024
The “Charity Council” and the “Culture & Heritage Council” are the two primary bodies that will direct the DAO’s governance.
These councils will direct communal projects, Lucie said. Their priorities will include keeping the culture associated with the token’s community alive as well as taking part in charity endeavors.
Shiba Inu’s upcoming DAO to grant community more control
“While the DAO hasn’t been fully implemented yet, its introduction will mark a major milestone, giving Shibizens more control over decisions that impact the ecosystem,” Lucie added.
Unlike traditional organizations, DAOs distribute power among its constituents. Consequently, this makes group decision-making possible. Moreover, DAOs function using blockchain-based smart contracts that automatically enforce predetermined guidelines. This reduces the need for centralized control or oversight.
Shiba Inu wants to give its large community direct control over the project’s development by launching a DAO. This strategy is in line with the fundamental idea of many cryptocurrencies, which places a strong emphasis on community involvement.
Generally speaking, meme currencies have trouble being used for anything other than speculative trade. SHIB holders may be able to influence the direction, partnerships, and development priorities of the currency by exercising their voting rights on project ideas through a DAO, which would increase the token’s worth beyond that of a simple meme coin.
Shibarmy alerts Shiba Inu users to spike in scam attempts
Shibarmy Scam Alerts, Shiba Inu’s official scam alert channel, alerted users earlier this month to the growing number of frauds that target the cryptocurrency. This notification came after a previous notice about phony Telegram groups that were trying to take advantage of the community.
“These groups are designed to scam you and drain your wallets by promoting fraudulent tokens or offering fake rewards,” they wrote.
