Bitcoin
BTC$30 326.91

1.12%

Ethereum
ETH$2 076.58

2.21%

Tether
USDT$0.999001

0.01%

USD Coin
USDC$1.000230

-0.02%

Binance Coin
BNB$304.44

2.05%

XRP
XRP$0.435585

2.31%

Bitcoin loses interest from speculators, heading toward $10k in a year


16 Jul 2021

#Bitcoin

Bitcoin has once again walked through a minor crisis on the price approaching $30k. That level has the potential to trigger an even broader sell-off in the cryptocurrency market. The quick rebound suggests that the bulls are willing and able to defend the critical round level. 

However, everything is not so simple, and one of the leading indicators is trading volume. This is exactly where the situation is alarming, as the trading volume has decreased significantly in recent months.  The average daily trading volume is 76% lower than the levels when the price peaked above $60K. How negative is this for the crypto market? Investors and traders choose to stay out of the market, and attempts to buy back the decline are incredibly cautious.

A triangle with downside resistance and horizontal support at $31.5K continues to form on the chart. Though the bulls manage to push the price away from the bottom of this figure time after time, the sell-off episodes start from lower and lower levels. And this has fatal consequences for the bitcoin price.

With their massive share of speculative capital, cryptocurrencies are not characterised by periods of calm at high prices: rapid growth or a deafening collapse followed by a consolidation. This dramatically increases the odds that the exit from the consolidation phase will be down with a potential $10k target at some point next year.

Yesterday, we saw that both when the price of the benchmark cryptocurrency fell and when it rebounded, trading volume showed little to no change. This means that the market was driven by small open investor positions, indicating a deep vulnerability to the sentiment of a small group. It is hard to see bullish forces accumulating in such a situation to break through critical levels.

Elsewhere, despite local attacks against cryptocurrencies and exchanges by authorities in developed economies, senior banking officials still confirm that cryptocurrencies are not a system threat. Probably, that is why we are not seeing a harsh reaction from regulators around the world. For example, the Bank of England deputy governor said that cryptocurrencies “have not yet crossed the financial stability risk line”. It is widely recognised that cryptocurrencies are volatile.

Still, as long as monetary authorities in developed economies look at digital currencies through the lens of a “technology casino,” crypto market participants have time to make a profit before the size of the market forces regulators to stop the free development of digital currencies. That moment will probably coincide with the launch of national digital currencies. For now, the “casino” works and consistently win.


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Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 65.6% 74 $30 326.91 1.12% -1.69% $577 507 167 326 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 66.4% 75 $2 076.58 2.21% -10.32% $250 891 465 462 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 96% 1 $0.999001 0.01% -0.08% $75 676 462 108 USDT 7 days price change
4 USD Coin (USDC) USDC USD Coin predictions 96% 1 $1.000230 -0.02% -0.04% $52 257 987 348 USDC 7 days price change
5 Binance Coin (BNB) BNB Binance Coin predictions 65.6% 71 $304.44 2.05% -3.10% $49 708 837 503 BNB 7 days price change
6 XRP (XRP) XRP XRP predictions 66.8% 66 $0.435585 2.31% -13.81% $21 057 536 595 XRP 7 days price change
7 Cardano (ADA) ADA Cardano predictions 68.8% 66 $0.575630 2.12% -8.16% $19 421 209 986 ADA 7 days price change
8 Solana (SOL) SOL Solana predictions 63.2% 76 $56.43 3.88% -13.30% $19 038 552 817 SOL 7 days price change
9 Binance USD (BUSD) BUSD Binance USD predictions 96% 1 $1.002005 0.22% 0.35% $18 231 060 479 BUSD 7 days price change
10 Dogecoin (DOGE) DOGE Dogecoin predictions 62.4% 73 $0.089988 2.40% -16.42% $11 938 784 018 DOGE 7 days price change
11 Polkadot (DOT) DOT Polkadot predictions 67.2% 74 $11.01 1.97% -0.91% $10 874 092 462 DOT 7 days price change
12 Avalanche (AVAX) AVAX Avalanche predictions 66.4% 75 $34.13 2.44% -22.27% $9 183 931 187 AVAX 7 days price change
13 Wrapped Bitcoin (WBTC) WBTC Wrapped Bitcoin predictions 67.2% 74 $30 349.83 1.15% -1.21% $8 599 743 334 WBTC 7 days price change
14 TRON (TRX) TRX TRON predictions 71.6% 60 $0.072402 4.12% -4.60% $7 070 299 328 TRX 7 days price change
15 SHIBA INU (SHIB) SHIB SHIBA INU predictions 64.8% 75 $0.000013 4.03% -21.64% $6 883 934 346 SHIB 7 days price change

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