In the last days of August, the king of cryptocurrencies has entered a sideways movement again. This situation is negatively affecting altcoins. The inability of the price to recover quickly after double-digit losses clearly reflects the lack of demand. This indicates that investors could face even greater losses.
Bitcoin Current Situation
The king cryptocurrency is experiencing sell-offs at resistance levels and is unable to find sufficient demand at support zones. This triggered larger losses when it was at $29,700. Now, investors can show the same trend and produce a similar result. Regulatory uncertainty, recession concerns for the US, and the hawkish stance of the Fed are negatively affecting risk markets in this process. Bloomberg experts argue that the recent decline in BTC is actually a leading signal for other risk assets. If US stock markets experience steady declines in the coming weeks, this prediction will come true.
Meanwhile, the BTC price has eroded by over 10% and is now at $26,000. The price has been fluctuating within a range of 25% since March.
For a price that has tested its bottom and top several times, a breakout is now needed. Considering the negative outlook in the short term, a downward breakout would not be surprising. In a possible bearish scenario, we can see sales down to $20,800.
Crypto Markets Current Situation
In the 2021 bull market, the daily volume of Dogecoin exceeded $40 billion. Today, the cumulative volume of all cryptocurrencies has fallen to $14 billion. This lack of demand undoubtedly increases investors’ concerns for further declines. Except for a few exceptions, there is no reason for altcoin investors to be happy due to weak demand.
In the past 7 days, BTC, ETH, BNB, XRP, ADA, and DOGE, which are the largest cryptocurrencies, have hardly moved. The weekly movement decreased by only 1%, and for the volatile cryptocurrency markets famous for their high volatility, this means the price remains stable.
The only cryptocurrency among the top 100 cryptocurrencies that has gained over 15% is BONE Token. This was due to the excitement brought by the Shibarium launch.
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