Bitcoin
BTC$23 414.18

-0.57%

Ethereum
ETH$1 660.60

0.87%

Tether
USDT$1.000139

0%

Binance Coin
BNB$332.21

2.49%

USD Coin
USDC$0.999870

-0.01%

XRP
XRP$0.410035

0.05%

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 64.4% 76 $23 414.18 -0.57% 1.32% $451 444 140 453 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 68% 64 $1 660.60 0.87% 3.91% $203 213 799 353 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 95.2% 1 $1.000139 0% 0% $68 038 057 989 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 78.4% 39 $332.21 2.49% 7.92% $52 455 756 881 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 96% 1 $0.999870 -0.01% -0.02% $41 954 575 977 USDC 7 days price change
6 XRP (XRP) XRP XRP predictions 72.8% 51 $0.410035 0.05% -0.66% $20 829 395 994 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 90.8% 1 $1.000093 0.02% 0% $16 273 786 064 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 63.6% 69 $0.401700 0.32% 2.18% $13 898 855 921 ADA 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 77.6% 48 $0.093742 2.62% 6.67% $12 436 791 556 DOGE 7 days price change
10 Polygon (MATIC) MATIC Polygon predictions 66.8% 64 $1.23 4.02% 7.27% $10 780 259 861 MATIC 7 days price change
11 Lido stETH (STETH) STETH Lido stETH predictions 93.2% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
12 Solana (SOL) SOL Solana predictions 60.8% 88 $24.55 0.87% -0.41% $9 145 525 743 SOL 7 days price change
13 Polkadot (DOT) DOT Polkadot predictions 66% 74 $6.94 5.67% 5.23% $8 000 392 092 DOT 7 days price change
14 SHIBA INU (SHIB) SHIB SHIBA INU predictions 64.4% 79 $0.000014 14.51% 18.56% $7 679 941 030 SHIB 7 days price change
15 Litecoin (LTC) LTC Litecoin predictions 78% 38 $100.23 0.95% 13.08% $7 236 835 830 LTC 7 days price change

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