Here’s why Bitcoin being ‘on a break’ MUST end now

stock market forex trading graph 1 scaled

Price corrections are a healthy aspect of a bullish market since it allows the asset to recover lost momentum. Bitcoin has been going through a similar period over the past few days, with the king coin consolidating under $40,000. While this has been the case for BTC, some altcoins have taken advantage of a lagging rally, registering high price movements over the week.

While altcoins do usually perform during a stalling period for Bitcoin, there is an expiration period for every case. As far as Bitcoin is concerned, let’s see how long this stalling period might be.

Bullish week for altcoins

Starting with Ethereum itself, the world’s largest altcoin touched a monthly high of $2774, a level last seen on 7 June. Some of the momentum created for Ethereum was based on its hard fork event. What’s more, over the past week, retail demand has also increased for Ether.

Chainlink was able to register a V-shape recovery on the charts, recovering to $25 on 4 August before consolidating at $23. However, Chainlink also shares a lower correlation with Bitcoin. Ergo, over time, both these assets have performed variably across different time periods.

Source: Weiss Crypto

Speaking of uncorrelated assets, Uniswap also makes the cut as the DeFi asset had hiked above $20 at press time. A double bottom pattern was being formed at press time, one which may undergo a breakout as well.

Now, these assets have been performing when Bitcoin is in a state of minor distress. How long will it be before Bitcoin recovers as well?

How long should a Bitcoin stalling period be?

The answer is, not very long.

BTC/USDT on Trading View

At press time, Bitcoin has been in a phase of ‘stall’ since 31 July. Simply put, it’s ‘on a break’ On 1 August, the asset briefly crossed $42,000. And yet, price corrections were almost immediate. 24 hours ago, Bitcoin managed to break away from the declining pattern. However, at the time of writing, it had lost all its recoveries over the past 12 hours.

Now, the primary concern here is that the stalling period might have a cap limit.

Source: Intotheblock

According to IntoTheBlock, the number of addresses holding Bitcoin at $37,100 is a whopping 820k, holding ~398k BTCs. Therefore, it can be inferred that a valuation drop and a close below $37,100 would not be considered a stalling period anymore. Bitcoin dropping below $37k will possibly open the doors to rising bearish momentum. Subsequently, altcoins will also lose their higher market positions.

Hence, if there is a right time to break the stalling period, it is now for Bitcoin. Otherwise, the narrative will continue to swing between the bulls and the bears.

Ronnie Huss

Ronnie Huss

Leave a Reply

Your email address will not be published. Required fields are marked *

Share:

Share on telegram
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Related Posts

bitcoin
Bitcoin (BTC) $ 65,145.45
ethereum
Ethereum (ETH) $ 3,180.91
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 574.62
solana
Solana (SOL) $ 151.13
usd-coin
USDC (USDC) $ 1.00
staked-ether
Lido Staked Ether (STETH) $ 3,179.17
xrp
XRP (XRP) $ 0.528522
dogecoin
Dogecoin (DOGE) $ 0.163549
the-open-network
Toncoin (TON) $ 6.23
cardano
Cardano (ADA) $ 0.507167
shiba-inu
Shiba Inu (SHIB) $ 0.000028
avalanche-2
Avalanche (AVAX) $ 38.21
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 65,206.47
bitcoin-cash
Bitcoin Cash (BCH) $ 513.20
polkadot
Polkadot (DOT) $ 7.22
tron
TRON (TRX) $ 0.111174
chainlink
Chainlink (LINK) $ 14.97
internet-computer
Internet Computer (ICP) $ 15.64
matic-network
Polygon (MATIC) $ 0.738179
near
NEAR Protocol (NEAR) $ 6.35
litecoin
Litecoin (LTC) $ 85.15
uniswap
Uniswap (UNI) $ 7.85
leo-token
LEO Token (LEO) $ 5.74
dai
Dai (DAI) $ 1.00
aptos
Aptos (APT) $ 10.14
ethereum-classic
Ethereum Classic (ETC) $ 28.20
blockstack
Stacks (STX) $ 2.80
mantle
Mantle (MNT) $ 1.23
filecoin
Filecoin (FIL) $ 6.72
first-digital-usd
First Digital USD (FDUSD) $ 1.00
render-token
Render (RNDR) $ 9.20
crypto-com-chain
Cronos (CRO) $ 0.131521
cosmos
Cosmos Hub (ATOM) $ 8.66
stellar
Stellar (XLM) $ 0.116062
okb
OKB (OKB) $ 55.77
arbitrum
Arbitrum (ARB) $ 1.22
immutable-x
Immutable (IMX) $ 2.21
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,207.65
bittensor
Bittensor (TAO) $ 481.56
hedera-hashgraph
Hedera (HBAR) $ 0.089380
dogwifcoin
dogwifhat (WIF) $ 3.11
vechain
VeChain (VET) $ 0.042260
maker
Maker (MKR) $ 3,140.63
kaspa
Kaspa (KAS) $ 0.120321
the-graph
The Graph (GRT) $ 0.289647
fetch-ai
Fetch.ai (FET) $ 2.52
injective-protocol
Injective (INJ) $ 29.37
optimism
Optimism (OP) $ 2.51
pepe
Pepe (PEPE) $ 0.000006