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.
# | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
1 | ![]() |
Bitcoin predictions | 64.4% | 76 | $23 414.18 | -0.57% | 1.32% | $451 444 140 453 | ||
---|---|---|---|---|---|---|---|---|---|---|
2 | ![]() |
Ethereum predictions | 68% | 64 | $1 660.60 | 0.87% | 3.91% | $203 213 799 353 | ||
3 | ![]() |
Tether predictions | 95.2% | 1 | $1.000139 | 0% | 0% | $68 038 057 989 | ||
4 | ![]() |
Binance Coin predictions | 78.4% | 39 | $332.21 | 2.49% | 7.92% | $52 455 756 881 | ||
5 | ![]() |
USD Coin predictions | 96% | 1 | $0.999870 | -0.01% | -0.02% | $41 954 575 977 | ||
6 | ![]() |
XRP predictions | 72.8% | 51 | $0.410035 | 0.05% | -0.66% | $20 829 395 994 | ||
7 | ![]() |
Binance USD predictions | 90.8% | 1 | $1.000093 | 0.02% | 0% | $16 273 786 064 | ||
8 | ![]() |
Cardano predictions | 63.6% | 69 | $0.401700 | 0.32% | 2.18% | $13 898 855 921 | ||
9 | ![]() |
Dogecoin predictions | 77.6% | 48 | $0.093742 | 2.62% | 6.67% | $12 436 791 556 | ||
10 | ![]() |
Polygon predictions | 66.8% | 64 | $1.23 | 4.02% | 7.27% | $10 780 259 861 | ||
11 | ![]() |
Lido stETH predictions | 93.2% | 1 | $2 941.39 | -0.40% | -3.32% | $10 258 752 564 | ||
12 | ![]() |
Solana predictions | 60.8% | 88 | $24.55 | 0.87% | -0.41% | $9 145 525 743 | ||
13 | ![]() |
Polkadot predictions | 66% | 74 | $6.94 | 5.67% | 5.23% | $8 000 392 092 | ||
14 | ![]() |
SHIBA INU predictions | 64.4% | 79 | $0.000014 | 14.51% | 18.56% | $7 679 941 030 | ||
15 | ![]() |
Litecoin predictions | 78% | 38 | $100.23 | 0.95% | 13.08% | $7 236 835 830 |
Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.
© 2015-2023 Crypto-Rating.com
The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.