The cryptocurrency market has been volatile this year, with many reaching new all-time highs. There’s no doubt that the current trend in the market is up, but what happens when it sells off at an alarming rate? Well, the answer is simple: it is time to sell.
On August 1, as many predicted, the bitcoin price has finally dipped below $3500. The cryptocurrency has been on a steady decline ever since the SEC rejected the Winklevoss’ ETF, which would have made it fairly easy to own bitcoin.
Bitcoin has a lot of value but a lot of competition as well, with everyone from the Winklevoss twins to the Winklevoss Bitcoin Trust ETF (COIN) all promising to bring the cryptocurrency into the mainstream. That’s mostly because interest in cryptocurrencies is growing. People are looking for ways to protect their wealth, and to make it easier to spend their bitcoin. Sound familiar?
On the 20th. Bitcoin (BTC) fell to a local low of $33,750 in June as fears of weak support levels materialized. 1-hour candlestick chart of BTC/USD (Bitstamp). Source: TradingViewShades of gray investors have the opportunity to sell
Another theory about the direction of price movement is related to the upcoming release period of institutional giant Grayscale. As noted by Cointelegraph, most investor funds will be released in the coming weeks after a 6-month lock-in period, which could increase selling pressure as accredited investors try to recoup some of their losses (realized after selling GBTC shares) by selling BTC on the cash market. After that, however, there should be a distinct lack of vendor activity. Unlock the event graph in grayscale. Source: Bybt
Fundamentals see increasing correction
At the same time, the analysis of key network indicators has raised new concerns. Hash rates, which were already subject to fluctuations due to changes in the distribution of miners, dropped below 100 hashes per second (HPS) after peaking at 168 HPS. Related: Analysts warn that bitcoin could lose its $30,000 price point if shares fall. Other estimates, although not exact, also point to a downward trend for hashish. Graph of Bitcoin’s average hash rate over 7 days. Source: Blockchain The breakdown, which has just experienced two consecutive downward corrections, was poised for a third drop of about 9.7 percent at the next adjustment, which will take place in about nine days. The last time bitcoin experienced three consecutive downward corrections in complexity was during the capitulation phase of the previous bear market in late 2018.The price of Bitcoin has been fluctuating like crazy lately, and the entire market is reeling as a result. The Bitcoin price dipped below $34,000 today for the first time since mid-December, and the price of Bitcoin futures on the Cboe and CME futures exchanges have been dropping like a stone. The price of Bitcoin plummeted to $34,078 as the day wore on, and while it recovered to $34,659 by the end of the day, the price of Bitcoin has dropped over $1,000 since the start of the year, and that’s after a 300% rise since early 2017.. Read more about bitcoin reversal and let us know what you think.
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