By Shelly Melancon (Switzerland)
Bitcoin is has rallied up by about 4.5%, while Ethereum also rallied up by about 4%. All digital assets dropped below their crucial support levels yesterday, including the two biggest cryptocurrencies.
Cryptocurrencies drop prices yesterday. Source: Coinmarketcap
Gradual Recovery in The Market
Current information from Coinmarketcap indicates that the market is on a gradual recovery. BNB, ADA, and XRP have risen by about 4%, 7.1%, and 5.3%, respectively. As is the usual case, when bitcoin declines, altcoins follow suit, which happened yesterday as well when news of more clampdown on crypto exchanges and bitcoin miners came in from china.
Consequently, there was a significant decrease in the bitcoin hash rate due to these relentless actions by the Chinese government and the movement of crypto miners to Canada, Kazakhstan, and other crypto-favorable regions.
However, some investors are utilizing the current dip to their advantage, with some even publicly revealing that they are doing so. Cathie wood’s ark investment management and famed author of the “Rich Dad, Poor Dad” series, Robert Kiyosaki, have disclosed via Twitter that they are buying bitcoin at its current price.
Similarities Between 2021 and 2013 Bitcoin Behavior?
Famous crypto trader Lark Davis has revealed via Twitter that he observed certain similarities between the current bitcoin behavior and 2013. Back in 2013, the leading cryptocurrency also declined massively after a period of rising, but it rose farther than its previous all-time high after the dip. So, Davis thinks history might repeat itself.
Lark Davis tweet. Source: Twitter
“Expect More Market Decline”
Elle Le Rest, co-partner at ExoAlpha, a digital asset management company, also affirmed that the recent market turmoil resulted from massive selloffs from Chinese crypto traders and investors in the last 30 days. Le Rest also said some inexperienced are panic selling after hearing that grayscale’s unlocking 16,500 bitcoins early next month.
“As newbie crypto traders and investors see a continued decline in their profits and capital because of the selling pressure, most of them have decided that they’ve seen enough and are ready to take a loss on their bitcoin investment.” Le Rest further said.
Le Rest also said these relentless pressures could cause the bitcoin price to range between the $26,000 and $34,000 range by next month, and as august is commonly known as a low bitcoin volume month, the volume can even be considerably lower this year august.
However, ExoAlpha’s chief investment officer, David Lifchitz, opined that the current rebound doesn’t mean the decline is over. “it is too early to conclude that this is “the” bottom or just a slight bounce before another decline starts. Cryptos often bounce back based on the support of an upside catalyst. Hello, Mr.Elon Musk…” Lifchitz concluded. Famous crypto trader and analyst with the Twitter handle, @crypto_ed_nl, concurs with Lifchitz revealing (via Twitter) that his Elliott Waves analysis shows that bitcoin price has one more leg down to the $25,000 range before any sustainable price rally.
Crypto_Ed_NL Tweet. Source: Twitter
If his predictions are correct, bitcoin would be trading at its lowest price since December last year.
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