Crypto whales are being driven away as evidenced by the 30% volume drop.

The price of Bitcoin is $29,054 at the time of writing as per data from CMC.

Investors in Bitcoin (BTC) are in a bind as the value of the leading cryptocurrency continues to consolidate. Crypto whales are being driven away as evidenced by the 30% volume drop. The price of Bitcoin is $29,054 at the time of writing as per data from CMC.

Earlier on Aug 2, the price made an unsuccessful attempt to breach the $30k level. Post the failed attempt, bears kicked in, driving the price all the way to the $29k mark.

Major Swing in Either Direction

Bitcoin’s price chart, which shows the cryptocurrency’s steady trading around the $29,000 level, is indicative of a confined trading pattern, which is characterized by a lack of major volatility. Bitcoin’s attempt to break through $29,300 resistance was quickly rejected, reaffirming the cryptocurrency’s recent range-bound nature.

The price might witness a further drop if it breaks the recent support level of $28,750 and can rally to the $30k level if it manages to trade above the $29,400 mark.

Surprisingly, Bitcoin’s volatility has dropped to levels similar to gold’s, a historically stable asset class. Also, the dynamics of the market are made more interesting by the unexpected confluence of the highly volatile cryptocurrency and the conventional store of value.

It’s important to remember that periods of quiet in the market’s turbulence like these often come before major swings in either direction. According to Bitcoin firm NYDIG, the impending BTC halving event looks bleak in light of the recent Litecoin halving.

Bitcoin and Litecoin have both maintained their halving cycle duration, although the subsequent price rallies have become less dramatic. According to the consensus of Bitcoin experts, the asset’s low-to-high and high-to-low returns throughout the halving cycle create a negative projection.

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Filed under: Bitcoin - @ August 5, 2023 7:21 pm