Bitcoin went through another turbulent week and experienced a price below $ 30,000. However, sellers are expected to raise the price of this digital currency next week by covering trading opportunities.
to the Report Bitcoin Desk, the price of Bitcoin finally fell somewhat after experiencing a 10% growth last week. At the time of writing, each bitcoin is trading at $ 32,000, a 2 percent increase over the past seven days. The price of Ethereum, the second digital currency on the market, has also stabilized above $ 2,000 and has grown by 6% in the last 7 days.
The digital currency market is currently accelerating, and this could keep buyers active during the week. Some analysts expect short-term bitcoin pressure to move above the 50-day moving average (MA) in the $ 34,000 range, given the sell-off conditions in the charts.
Pankaj Balani, CEO of Delta Digital Currency Exchange, said in an interview:
For the first time in the last few weeks, we are seeing bullish signs and we expect Bitcoin to reach the $ 30,000 to $ 40,000 limit. In the option trading market [بیت کوین] We see good coverage of the agreed price of $ 30,000 to $ 40,000 for contracts with weekly maturities. Contracts that expire in July still have a good open profit at the agreed price of $ 35,000, and this level could be the ceiling for the bitcoin price this month.
In general, the sense of danger in traditional markets and digital currencies is waning as concerns about the US government’s tightening of the stimulus package are easing. The European Central Bank (ECB) on Thursday pledged to keep interest rates low for longer and finally changed its position to allow inflation to rise slightly above the 2% target.
The European Central Bank’s announcement, along with a sharp drop in government bond yields around the world, boosted stock prices last week. In addition to making a profit, improving emotions and positive comments from Tesla CEO Ilan Musk on Wednesday kept digital currency buyers active.
Bitcoin Transaction Options
According to data from the Skew website, Bitcoin option traders are pricing themselves based on an 8% chance of the digital currency rising in price, culminating in a new high of $ 64,800 by the end of this year.
Moreover, the 6-month estimated fluctuations, or investors’ expectations regarding price fluctuations in the coming months, dropped to 80% at the time of writing, which is the lowest level in the last 2 months. The peak of this index was 122 percent, which was recorded on May 17 (May 27).
This means that investors expect price stabilization to continue for some time, said Omkar Godbole, an editor at CoinDesk.
Probability of borrowing pressure
Sashimi Nakamoto wrote in CryptoQuant:
If Bitcoin maintains the lower limit of the 30,000 channel, as it moves to the midpoint of this channel, the pressure of short traders will increase.
According to Nakamoto, the chart below shows the bitcoin leverage rate. This rate is obtained by dividing the open profit on the bitcoin reserves of the exchanges. In this chart, the bitcoin leverage rate has reached its highest level since April. The bitcoin funding rate is negative but small, indicating that the profit of short positions is higher than that of long positions.
The funding rate is a measure of the cost of financing long positions in the market for bitcoin-free swaps. Swaps are derivative financial instruments in digital currency markets that act similarly to futures contracts in traditional markets.
Weakening the flow of credit in the digital currency market
Total assets under management in digital asset-based investment products traded on the stock exchange and in OTC secondary markets fell 14 percent from June to $ 34.8 billion.
Digital asset markets still “have a long way to go before risk-averse investors feel comfortable with them,” according to cryptocurrency analytics website CryptoCompare.
The effect of proverbial tokens on the price of ether
As the popularity of non-pecuniary tokens (NFTs) increases, despite the general downward sentiment in the digital currency market, some domestic critics of non-pecuniary tokens blame outsiders who have entered the realm of non-pecuniary tokens for the fall in Ethereum (ETH) prices.
They say that these people immediately cash in on the Ethereum after selling their unique tokens, which causes the price of the market number two digital currency to slow down.
However, many analysts and market participants believe that the sale of counterfeit tokens has no significant effect on the price of Ethereum. However, these protests indicate that many traders and investors are desperate.
Daniel Lv, co-founder of the Nervos Network blockchain in China, said in an interview that the speculation was more a reflection of current market sentiment.
Of course, this is not a trivial accusation, because the growth of the market for unique tokens has not slowed down even slightly due to the approval and encouragement of celebrities outside the digital currency market.
Summary of Altcoin News
The price of Oxy Infinity Token (AXS) doubled in two days: The governance token of the Axie Infinity platform has more than doubled since Wednesday. The AXS is currently trading at around $ 45, while today it has reached a historic high of around $ 48.16. The growth of this token since the beginning of this year has been 7.427%. Oxy Infinity is a blockchain-based trading and fighting game that allows players to collect, nurture, train, train, and fight creatures called “Axie” who become unparalleled tokens. Also buy and sell.
Fall of the Thor (RUNE): The RUNE token fell for the second time in two weeks after a hacker attack on the Thorchain platform, this time causing $ 8 million in damage. The price of RUNE at the time of writing is $ 3.75 and has decreased by 3.5% in the last 24 hours, after a decrease of over 20% yesterday. Messari data show that the token, which has a market value of at least $ 500 million, had the worst performance among digital assets in the past day. The price of RUNE is now more than 80% lower than the historical ceiling recorded in May. Thorchin announced on Thursday that he had been targeted by a hacker attack that caused about $ 8 million in damage. The protocol was the target of another attack last week, and about 4,000 ethers were stolen.
Karura Swap Exchange launched on Polkadot: The first decentralized exchange in the Polkadot and Kusama ecosystems of China, the Carura Swap, was set up and traded by the Acala Foundation.
Tron Blockchain: Justin Sun, founder of the Tron blockchain network, said the recent explosive growth in Theron has been overshadowed by its more well-known rival, Polygon. Although the total value of Locked in Paligan is higher than the Theron, the Theron has grown faster in other respects and has recently accelerated with the significant growth of its StableCoin.