Bitcoin price fluctuated in a range between $30,000 – $40,000 for seven consecutive weeks, falling along with most altcoins
Bitcoin price teeters and continues its lull as Ethereum follows the motion, potentially indicating a period of consolidation for the crypto markets. The largest cryptocurrency by market capitalization was holding above price support at $32,000, with $36,400 seen as the upside target. For the past seven weeks, BTC has mostly stayed in a range between $30,000 and $40,000, with not much momentum to breakthrough.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price dropped below the $33,000 support level after bears took control of the market
Glassnode described the bitcoin market as “impressively quiet”. Trading volumes in the largest cryptocurrency have trended downward, and may because Wall Streeters who have recently nosed into cryptocurrencies are, well, taking a break. Volume in Bitcoin dropped to $1.58 billion, the lowest since October 2020.
Crypto funds saw net redemptions last week, reversing from the prior week’s swell of inflows | Source: CoinShares
Additionally, Bitcoin’s average return for six-month investors is sitting at a very low -27.81%.
The amount of daily inflow of Bitcoin to known exchange wallets, as well as the total supply of BTC on exchanges, has experienced a sharp 50-day drop, which may point to diminishing sell-side pressure.
But this is not negative news, just an update on the market situation. Therefore, pay attention to articles that are FUD in the form of negative-driven sentiment.
However, maybe BTC holders appear to be withdrawing coins to put into long-term storage as the market awaits the next significant move higher. Besides, the good news is that Bitcoin hashrate shows signs of recovery. According to Glassnode, roughly 29% of the lost hash power has now come back online as a result of Chinese miners successfully relocating hardware while previously obsolete hardware has been dusted off and found a new lease on life.
Bitcoin means hash rate | Source: Glassnode
After a 50% correction across the crypto markets, it seems that we are in a consolidation mode which is healthy for the next bull run. If Bitcoin price holds support at $30,000 through the summer, we may be poised for a great Q4 rally.
Altcoins, in general, fell under pressure as BTC retracement led to market-wide weakness. As the sell-off intensified, ETH fell to the $2,000 support level after traders rushed out. But now, ETH has regained support and hovered slightly above the $2,000 region. But the trend is not sustainable.
While much of the market was in the red for the day, there were a few projects that managed to stay above the buzz and recorded gains on July 12, with Metal (MTL) up 18% while Revain (REV) and Injective Protocol (INJ) increased 13% and 6% respectively.
Meanwhile, Synthetix (SNX) reached one-month highs above $13. SNX allows market participants to trade Ethereum-based synthetic contracts linked to traditional financial assets, including crude oil as well as stocks like Apple, Tesla, Facebook, Google, and Coinbase. SNX’s move to four-week highs comes as the protocol readies to launch its long-awaited exchange powered by Optimistic Ethereum, an Ethereum layer 2 scaling solution aimed at boosting transaction throughput and bringing down fees.
The overall cryptocurrency market cap now stands at $1.367 trillion and Bitcoin’ Dominance rate is 45.5%.
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