- Tram Ho
Over the past few weeks, the Bitcoin price has been constantly bouncing around the $30,000 mark, at times nearing $40,000 and at times falling below resistance.
The $30,000 price zone is considered by experts to be a hard support zone, if falling below this price level will be very dangerous for the virtual currency market.
However, once again Bitcoin fell below $30,000 before bouncing back up. This familiar scenario has continued throughout the past few weeks, leaving many investors confused, what is going on with Bitcoin?
Bitcoin is in a bear cycle
Not all the shocks, Bitcoin over the past few weeks has been rising and falling slowly within a range of only 5-10%, which is quite small compared to the volatility commonly seen in the virtual currency market. This reflects the fact that sharks are no longer manipulating Bitcoin and the price movement is mainly coming from the fry.
|The chart shows that Bitcoin could correct down in the near term before bouncing back up.|
In this bearish cycle (downtrend), it is the alternative virtual currencies (altcoins) that are the main factors that create ups and downs for the market. Indeed, if you look at Bitcoin’s dominance rate, the number is still hovering around 45%, which is the same as when it peaked at $64,000 in mid-April when the price was halved.
The reason why money flows into altcoins is because investors have been ‘battled’ with Bitcoin’s roller coaster ups and downs. Meanwhile, investing in altcoins is like playing the lottery that can increase in value several times overnight, although the risk is high, the volatility is much higher than Bitcoin.
As money is exiting Bitcoin in this downtrend, only strong signals like Tesla accepting Bitcoin payments will bring this digital currency back to an uptrend.
Where does the money go?
With what is happening, it can be seen that the current trend is NFT (non-fungible token) and blockchain games. In fact, the NFT trend has been around since the beginning of the year, but it was only when Binance opened the NFT marketplace in June along with the popularity of real-life auctions that NFT got more attention.
NFT trading volume showed signs of increasing again in July.
|So far, everything on the Internet is NFTized, auctioned, and permanently stored in the blockchain. A massive inflow of money into the NFT through Ethereum makes Bitcoin no longer unique.|
But in addition to NFT, another trend that is also rekindling recently is blockchain gaming. This trend was started by Decentraland and is booming with Axie Infinity, a Vietnamese-developed game that has increased in value by 300% in the past few days.
This is a common occurrence when the market enters the crypto winter and in the short term this trend will continue as long as Bitcoin remains around the $30,000-40,000 threshold.
What future awaits Bitcoin?
Analysts are always teased that forecasts do not increase, then decrease. But when Bitcoin increases and when to decrease, decrease or increase by how much is still a billion dollar question that no one expert can answer accurately.
Because the Bitcoin price will be very easily manipulated by negative news from Central Banks or when mining pools stop working. On the flip side, pump & discharge sharks can also create huge price swings for Bitcoin in the short term.
Therefore, it is difficult to predict when Bitcoin will recover or when it will make a new bottom. Meanwhile, observers are still waiting for new fluctuations in Bitcoin as the value of this coin is recovering back to the $34,000 mark with the entire market capitalization nearing the $1.4 trillion mark, as of the morning of July 25th.
Source : Genk