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Bitcoin price dropped to a critical support level at $32,000 but traders are more interested in NFT tokens

It looks like the crypto market is looking for something to ignite some momentum as Bitcoin price drops to $32,300 and altcoins suffer losses of 2% to 5% over the past 24 hours. At press time, BTC is trading at $32,481, recording a loss of 3%.

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BTC/USD 4-hour chart | Source: TradingView

Nonfungible tokens soar even as Bitcoin price drops close to $32,000

Over the past few hours, a fresh wave of selling has pushed BTC close to the $32,000 support due to low trading volume and general disinterest from traders.

As shown in the chart below, Bitcoin price tends to trade in a consistent range after significant price moves, with previous cases extending to 132 days as was the case in late 2018 to early 2019.

traders-appear-to-be-sitting-on-their-hands-even-as-bitcoin-price-drops-closer-to-a-critical-support-level-at-32000

Source: Gas Fring/Twitter

The current compression range has lasted 55 days with a tighter range of $30,000 to $36,500 seen since June 19. In the previous instance of a layered stricter compression seen in Q4 of 2018 and in the summer of 2020, the period of tighter compression lasted for roughly half the overall period.

Bitcoin is in its eighth week stuck in a range of between roughly $30,000 and $40,000, and the sideways trading is reflected in the anemic cryptocurrency trading volumes of late. The fast-moving gains witnessed earlier this year are nowhere to be seen at the moment.

According to “Crypto Fear & Greed Index”, cryptocurrency markets are currently gripped by “extreme fear”.

bitcoin-price-dropped-to-a-critical-support-level-at-32000-but-traders-are-more-interested-in-nft-tokens2

Source: Alternative.me

While we had a small downfall in BTC, stablecoin and BTC flow sees still bearish. Getting BTC inflow spikes into exchanges with reserve rising to add to selling pressure. Stable coin reserves are decreased with the BTC price fall showing low demand/ purchasing power.

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Source: CryptoQuant

ETH price also fell under pressure alongside Bitcoin as the building momentum ahead of the network’s upcoming London Hard Fork failed to support a price above $2,000, resulting in a daily low of $1,911. Over the past seven days, BTC is down 4.3%, while ETH has lost 14%.

The altcoin market has been hit hard by the afternoon sell-off, leaving only a few coins in the green mostly non-fungible and gaming tokens. And the top three performers over the past 24 hours are Audius (AUDIO), Axie Infinity (AXS), Small Love Potion (SLP). They have increased by 42%, 13%, and 35% respectively as new users embrace daily income opportunities due to blockchain-based trading and fighting games.

bitcoin-price-dropped-to-a-critical-support-level-at-32000-but-traders-are-more-interested-in-nft-tokens3

AUDIO price | Source: CoinMarketCap

Other notable gainers include a 16% increase in the price of Phala Network (PHALA) and a 15% gain for MyNeighborAlice (ALICE). The overall cryptocurrency market cap now stands at $1.322 trillion and the Bitcoin Dominance rate is 46.1%.

The multifaceted use cases and applications of nonfungible tokens continue to be a source of strength for the NFT sector as a whole, primarily because they open the door for different sources of revenue via gameplay, music, and art sales.

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