In the past few hours, a new round of selling has propelled Bitcoin (Bitcoin) The price is close to the $32,000 support level because of low trading volume and general disinterest from traders, causing the price to return to the lower end of the current range.
The price of ether (Ethereum) Is also under pressure with Bitcoin because the construction momentum of the network before the upcoming London hard fork failed to support the price of more than $2,000, resulting in a daily low of $1,918.
Bitcoin’s compression range tightens
The anonymous Twitter account Gas Fring provided some insights into the current market conditions. He released the following tweet, highlighting an example of BTC’s previous range trading.
1/ This is a graph showing the following situation $btcusd Has maintained a range of shocks.
The Bitmex financing mechanism helps determine the direction of the breakthrough.
Except for the fourth quarter of 2018, when funds change from a negative state to a positive state, a month-long state usually helps determine the direction… pic.twitter.com/te93tA98JO
-Gas fringe (@gas_fring_) July 13, 2021
As shown in the figure below, Bitcoin prices tend to trade within a consistent range after large price fluctuations. The previous situation lasted for up to 132 days, just like the situation from the end of 2018 to the beginning of 2019.
The current compression range has lasted for 55 days, and since June 19, the range between US$30,000 and US$36,500 has been narrower.
According to Gas Fring, in the previous “layered tighter compression” example Seen in In the fourth quarter of 2018 and the summer of 2020, the austerity period “lasted about half of the entire period”.
“This tells me that we may still have about 2 weeks for more rigorous internal compression, which will take 34 and 68 days, respectively.
As Bitcoin continues to struggle, altcoins are hit hard
The sell-off in the afternoon dealt a heavy blow to the altcoin market. As traders left the market in a hurry, there were almost no green tokens.
Irreplaceable and gaming tokens like Axie Infinity (AXS) and Small Love Potion (SLP) continue to be the highlights in the otherwise bleak market, as new users embrace blockchain-based trading and fighting games.
Other notable increases include Phala Network (PHALA) price increase of 16% and MyNeighborAlice (ALICE) price increase of 15%.
The overall cryptocurrency market value is now $1.314 trillion, and Bitcoin’s dominance rate is 46.1%.
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