Bitcoin (BTC), as we often write lately, is still stuck in the same difficult situation. In fact, it appears to be tightening in this area and the price has barely moved over the weekend.
Last night bitcoin started to fluctuate slightly. The price first dropped to $28,990, then peaked at $29,230 and fell back to $29,000 by this morning. At the time of writing, BTC price is $29,040 on Binance and $26,420 on Bitvavo. Bitcoin price is down 0.1% today. The total market cap is $565 billion and the dominance is 48.7%. The Fear & Greed Index is 49 (Neutral).
The Bitcoin Fear and Greed Index is at 49. Neutral
Current price: $29,057 pic.twitter.com/z2DnmF5Ale– Bitcoin Fear and Greed Index (@BitcoinFear) August 6, 2023
Why is bitcoin price still stuck?
There is currently a major lack of liquidity in the market. This is mainly because the trading volume has been extremely low lately. According to analyst Axel Adler Jr., spot volume for BTC is even the lowest in three years.
The trading volume of BTC on the spot market has dropped to the 30,000 mark, setting a new record for the past three years.
Futures trading volume is approaching the 350,000 level, which is where it was at the start of the year after the FTX crash.
What next? pic.twitter.com/TxfavM1V7f
— Axel 💎🙌 Adler Jr (@AxelAdlerJr) August 7, 2023
Because on the one hand no new money is flowing in, on the other hand long-term holders refuse to sell their BTC. In the meantime, the share of this group of investors in the offer has reached a new record level. According to analyst Checkmate, long-term holders own 14.59 million BTC, or 75% of the circulating supply.
New all-time high for #Bitcoin Long-term owner offer 🔵, now at 14.59 million $BTC (75% of the amount in circulation).
For more advanced users, a number of essential tools for long-term/short-term owners are available @glassnode Members can track HODLers vs Speculators in this dashboard 👇 pic.twitter.com/83sLGQbtT5
— _Checkɱate 🔑⚡🌋☢️🛢️ (@_Checkmatey_) August 7, 2023
As a result, the volatility of Bitcoin is extremely low. Checkmate reports that volatility has now fallen to “historically low levels”. It’s the quietest time since March 2020, just after the outbreak of the coronavirus.
Realized volatility for #Bitcoin has fallen to historic lows.
Over a month to year period, this is the quietest corn development since March 2020.
Historically, such low volatility has been associated with the post-bear market hangover (reaccumulation) period. pic.twitter.com/wilcPgbTSR
— _Checkɱate 🔑⚡🌋☢️🛢️ (@_Checkmatey_) August 7, 2023
Could the CPI cause a stir this week?
Normally, a violent breakout is followed by a long period of consolidation. That has not happened for the time being, but we have another busy week ahead in terms of macro data. That could cause excitement.
This week it’s time again for the Consumer Price Index (CPI). The consumer price index for China will follow on Tuesday. On Thursday we get the US CPI and core CPI. The US CPI has often provided significant volatility. This Friday we get the US Price Producers Index (PPI). This week also sets the so-called earnings season here.
Has the potential to be an interesting week pic.twitter.com/MwEJ4ZjphD
— 𝐓𝐗𝐌𝐂 (@TXMCtrades) August 7, 2023
Bitcoin mining difficulty increases in two days
In addition, the Bitcoin mining difficulty will most likely increase again in two days. The level of difficulty increases significantly this year, since the so-called hash rate, or computing power, the network increases sharply. Two weeks ago we had a 3% drop. We expect an increase of 1.5% the day after tomorrow.
Bitcoin has been rejected every time, August has historically been bad
Analyst Rekt Capital notes that Bitcoin continues to be rejected around $29,250 and that this could be a possibility for now. bearish Signal. Bitcoin is already down 18% in August. On such a drop, Bitcoin would recover to around $24,000.
#BTC continues to decline at ~$29250
As long as this continues, the trend is towards lower prices$BTC #crypto #Bitcoin pic.twitter.com/GAy5oh3TPi
— Rekt Capital (@rektcapital) August 6, 2023
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