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Bitcoin retreats from the upper boundary of an uptrend channel

Bitcoin lost 2.1% in the past 24 hours, falling back to $22.9,000. Ethereum fell 6.5% over the same period to $1,580. Top altcoins went from 2.7% (XRP) to 12% (Polkadot).

The total cryptocurrency market capitalization, according to CoinMarketCap, fell 3.7% to $1.05 trillion during the day. The cryptocurrency fear and greed index fell further to 31 on Tuesday morning, marking the exhaustion of the bullish momentum of the past week.

Although BTCUSD officially re-wrote local highs late last month, as in two other episodes since early July, price gains are rapidly losing momentum and the surge is followed by selling pressure.

This cryptocurrency market momentum points to an impressive and continued excess in cryptocurrency supply, although Bitcoin confirmed the ascending channel in July. The rate is potentially heading towards the lower boundary of the channel, which now coincides with the 50-day moving average and crosses near $21.7,000.

A decisive dip below $21,000 would be evidence of a breakout of this upward consolidation and could trigger a true market capitulation. For now, however, there are more signs that the market is gradually warming up to buy.

According to CoinShares, net inflows into crypto funds last week amounted to $81 million, of which $85 million came from BTC investments. At the same time, investments in funds, which allow opening shorts on bitcoin, fell by $2.6 million. The total monthly inflow of crypto funds for July was $474 million and was the highest of the current year.

Capriole Investments noted that the past two months have seen a capitulation in many of bitcoin’s most critical metrics. This is the perfect time to invest in BTC and digital assets. The crypto fund expects the next 6-12 months to provide the best opportunity to enter this market for years to come.

MineXMR, the largest mining pool in the Monero ecosystem, announced its closure on August 12. In February, members of the Monero community were concerned about the concentration of mining capacity in the MineXMR pool, which presented a potential attack risk of 51%.

This article was written by Alex Kuptsikevich, Senior Market Analyst at FxPro.


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