Bitcoin's price stability does not make crypto market participants happy at all. Such a lull is perceived as a harbinger of a storm. Bitcoin's high volatility has always been its characteristic feature, and the trend of rapid growth has attracted speculators counting on quick profits. Periods in narrow trading ranges often ended in severe selloffs. That is happening now as Bitcoin is locked in a narrow trading range with a sequence of lower highs.

Approaching the $30K round level and its subsequent breakdown could trigger an avalanche of sell orders, while buyers may be in no hurry to help the benchmark cryptocurrency. This time, many crypto market participants are ready to see new lows on Bitcoin before new long-term purchases.

Bitcoin begins the work week with a slight 1% decline and is trading around $32,000. Another worrying sign for the first cryptocurrency was the pause in hash rate growth. Miners are moving in after new activity from the Chinese authorities. And as this process unfolds, it is becoming apparent that it is significantly more complex and costly. The Bitcoin network's hash rate has never recovered to its peak and is currently at levels of late October 2019. An automatic decline should soon follow this in complexity. It is accepted that Bitcoin's price follows the hash rate/complexity of mining, so the investment outlook is deteriorating for now.

A correction in the S&P 500 could negatively contribute to the short-term dynamics of the crypto market. In this case, a correlation of the benchmark equity index and Bitcoin may well show its full potential, as similar cautionary sentiment prevails in both markets.

On the positive side for the market, PayPal's announcement of an increase in the weekly cryptocurrency purchase limit from $20K to $100K and the elimination of annual purchase limits. This applies only to U.S. users of the payment system. However, given the fundamental role of the U.S. in the formation of the cryptocurrency market, such news could well support the market globally.

From this year's peak, the total capitalization of the crypto market has fallen by exactly half to $1.27 trillion. Without serious support, we will probably continue to see the crypto market decline down to values that would seem attractive to large investors to open large positions.

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

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu enters 96% bull run as whales continue accumulating SHIB

Ethereum whale bought $11.5 million worth of SHIB tokens on Tuesday. Shiba Inu token has reached 783,739 holders, large wallet investors accumulate SHIB tokens through the dip. SHIB was briefly the cryptocurrency with the largest turnover on exchanges Binance and Coinbase on Monday.

More Shiba Inu News

Three reasons why MATIC price will breakout to a new all-time high at $4.5

MATIC price breached a crucial resistance level that has prevented it from rallying four times over the past four months. The recent attempt seems to have an extra oomph behind it, hinting that this run-up could trigger a massive move.

More Polygon News

XLM price eyes 55% breakout if Stellar bulls can flip one crucial barrier

XLM price has been stuck trading under a crucial blockade for nearly five months. The situation is set to change soon, however, as Stellar coils up for an explosive breakout.

More Stellar Lumens News

Terra's Do Kwon files lawsuit against SEC while analysts turn bullish on LUNA

Do Kwon, Terraform Labs CEO, was served a subpoena by the SEC while appearing at Messari's Mainnet conference. According to Do Kwon and Terraform Labs' lawsuit against the SEC, the regulatory agency lacks jurisdiction over the plaintiffs. 

More Terra News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP