Reading time: ~2 m
Bitcoin is confidently holding above $20,000. The first cryptocurrency was able to recover after a highly volatile decline in the middle of the week after the release of statistics on inflation in the United States.
Bitcoin continues to consolidate
Since mid-June, Bitcoin has been trading in the range of 19,000 – 22,000 US dollars, a confident exit from which will indicate the further movement of the asset.
Despite the statistics on inflation in the Us, which turned out to be higher than expected, stock markets and Bitcoin were able to win back the decline that followed the publication of the data. The positive data on retail sales in the US released this week, as well as another portion of verbal interventions by Fed members, supported both the stock and cryptocurrency markets.
The fear and greed index remains in the zone of extreme fear, but not as extreme as previously observed.
Bloomberg calculated that the positive correlation between Bitcoin and the NASDAQ100 is declining.
The cost of Bitcoin mining fell to $ 13,000 due to the withdrawal of inefficient players from the market. This could put downward pressure on the price of Bitcoin.
Glassnode analysts, on the one hand, say that bitcoin’s bear market is in its final stages, but, on the other hand, all the signals pointing to the bottom have not yet formed.
As an example, they cite the decline of the cryptocurrency market in 2018-2019, when it lasted 15 months, and the value of Bitcoin fell by 85% from its previous peak.
Glassnode analysts believe that the dynamics of Bitcoin will be determined, in many respects, by the actions of miners and long-term holders.
The surrender of miners continues, but their pace has decreased. In May, they sold 4,470 Bitcoins, and in June 1,350. Miners continue to hold 66,900 Bitcoins. During the previous decline in the cryptocurrency market in 2018-2019, miners sold Bitcoins for 4 months.
Altcoins continue to show dynamics similar to the movements of Bitcoin. There are no serious deviations.
The capitalization of the cryptocurrency market is 924 billion US dollars, and the share of Bitcoin is 42.5%.
Author: Elvir, Analyst Freedman Club Crypto News
#Bitcoin #remains #sideways