Bitcoin has been locked in a sideways trend since the end of April, and in the last week, the dynamic became barely visible at all. During the week, the price has not changed but on the last trading day, the coin has added about a percent. The day before - bitcoin lost about the same amount. Sideway trends rarely end up positive for both the bitcoin and the whole crypto market. This time it doesn't look like bulls are gathering power for the decisive growth that the miners are hoping for, working at a loss after halving. Currently, the coin fluctuates around the 50-day average, with fairly low trading volumes of around $16bn by current standards. The Crypto Fear & Greed Index and RSI currently reflect the anaemic attitude of investors towards to the bitcoin.

Bidders want to clear the situation with the epidemic, which is already gaining momentum in the U.S., and then may lead to total closure of borders around the world. Complicating the situation is the fact that governments simply do not have the financial capacity to launch national lockdowns again.

Incentives unseen in peacetime cannot forever keep afloat stocks and various business sectors that have taken the brunt of the pandemic. Under these circumstances, there is fertile ground for increased use of bitcoin and other digital currencies. What is bad for crypto, in general, is the fact that institutions are not pure crypto enthusiasts and now they are providing the main liquidity to the market. In March they were selling off coins along with other risky assets when the market switched to high turbulence.

Given the increasing tightening of control over the movement of funds, cash flows will seek ways to move relatively anonymously, quickly, and cheaply between physically closed borders of countries. This fact seriously frightens the monetary authorities of all economies. This is why we did not see the launch of Libra and TON. Nevertheless, there is a global request for such projects and it will be satisfied sooner or later. Swiss banks and offshore companies are quickly becoming a thing of the past.

Who is really loaded with optimism on the market are the miners. It is unbelievable, but a fact: bitcoin producers were able not only to stay afloat after halving in mid-May but also to bring the network hash rate closer to previous levels. The same processes are happening with a difficulty that is gradually returning to the previous levels. Everything that happens can speak about one important factor: the miners are expecting the return of crypto growth. In the past, halvings led to significant growth in bitcoin and the entire crypto market. However, now all positive expectations should be adjusted to the fact that the market is unlikely to follow the expectations of the masses. At least, it may happen in other time periods.

The leading altcoin Ethereum (ETH) is growing moderately and trades at $230. The coin is helped by Buterin's promises to gradually increase the network speed, which should reach 100K transactions per second. In the meantime, network updates are constantly postponed. For example, the Berlin hardfork, which should be the next step towards Ethereum 2.0, has been postponed until August. However, faith in the ETH future is still strong enough that the coin price can keep reached levels and aim for new ones.

Trade Responsibly. CFDs and Spread Betting are complex instruments and come with a high risk of losing money rapidly due to leverage. 77.37% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider. The Analysts' opinions are for informational purposes only and should not be considered as a recommendation or trading advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Cardano price could trap impatient investors before triggering an explosive move to $0.505

Cardano price could trap impatient investors before triggering an explosive move to $0.505

Cardano price shows a consolidation below a stable support level and has yet to reveal a directional bias. The ongoing range tightening will likely resolve as the US markets head to a fresh start this week.

More Cardano news

LUNA Classic price hints at a 25% crash as Do Kwon under Red Notice from Interpol

LUNA Classic price hints at a 25% crash as Do Kwon under Red Notice from Interpol

LUNA Classic price reveals a bearish outlook that could unfold over the course of this week. A minor run-up seems plausible, but it is just a move to squeeze the bulls. Therefore, market participants should be ready for a quick reversal. 

More Luna Classic news

Ethereum Price Prediction: Assessing the possibility of a post-Merge rally

Ethereum Price Prediction: Assessing the possibility of a post-Merge rally

Ethereum price trades at $1,323 on Sunday, several days after sliding to $1,200. It was a surprise that the largest smart contracts token would give up most of its gains during and after the much-publicized Merge. On-chain data shows a significant reduction in the Ethereum Supply.

More Ethereum news

Why Chainlink price could lose momentum at $8.00

Why Chainlink price could lose momentum at $8.00

Chainlink price is among the few crypto assets in the green on Sunday. The smart contacts’ price feed oracle token defied the bear market this week to post 23.7% gains. As discussed earlier in the week, the V-shaped pattern matured at LINK brushed shoulders with $8.00.

More ChainLink news

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation

Bitcoin price takes the first step to recovery but needs solid confirmation that will arrive after a flip of the $19,539 level into a support floor. After a successful flip, investors could expect a move up to an intermediate hurdle at $20,737.

Read full analysis

BTC

ETH

XRP