The majority of the crypto market participants are bracing for potential losses as Bitcoin battles to retain the $30K level. The well-cemented trading range has left investors feeling the burden of an all too familiar sense of deja vu, fuelling worries about what it might take to alter the trading trend. Intriguingly, Bitcoin seems to be devoid of a solid trend in the short term. The premier cryptocurrency is ensnared in a tight spot, as it fluctuates between liquidity pockets without any clear direction.
As Bitcoin holds on to $30,000, speculators wonder what it will take to deplete the trend. Similarly, neither bullish or bearish parties have claimed a decisive victory, leaving the market in a stalemate. With the coming week expected to deliver little in terms of data-driven risk asset triggers from the United States or the Federal Reserve, such an absence of activity might not be entirely detrimental.
Though Bitcoin struggles in the short term, on-chain data hints at a reaccumulation phase amongst investors, suggesting a tranquil period before a broader market move. The Crypto Fear & Greed Index labels the crypto market sentiment as “neutral,” although this sentiment stands at its lowest level in July.
The digital currency ends the week substantially unaltered in relation to volatility. Even the $30,000 support level remained unchallenged, leaving Bitcoin within a narrower “mini-range” than the week before. However, concerns about a potential drop to $27,400, a level unseen for almost a month, linger.
Meanwhile, on-chain data shows the reawakening of Bitcoin whales, stirring interest from market analysts. Large clusters of unspent transaction outputs or UTXOs, which reflect sizeable hordes of coins, are observed to increase this year, in a fashion reminiscing of the classic bull market.
On-chain data reveals that a large quantity of the BTC supply moved near $30,000 than any other price point, indicating a strong interest from the investor base. The zone around $30,200 has observed a total of around 3.8% of the total supply move, thereby implying that Bitcoin is currently at a potentially pivotal point in its trading history.
Crypto Fear & Greed Index, a classic sentiment yardstick, illustrates the capricious nature of the average crypto investor. With rapidly fluctuating moods among market participants across established trading ranges, the sentiment significantly shifts above and below the critical $30,000 boundary. As of now, the Index sits in neutral territory. However, it’s now at its lowest level in July, at 54/100. This sentiment index indicates market rebounds or retracements when fear or greed reach their extremes respectively.
As the Bitcoin community continues to hold its breath, it’s clear that the ongoing trading range is a source of both frustration and anticipation. It’s uncertain how the market will maneuver in the coming weeks, but sudden changes in the trading environment can be expected.
Source: Cointelegraph
