Price Analysis

Bitcoin May Not Form New Highs Hereafter, Huge ‘Wall of Worry’ Strikes the Investors

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Aug 4, 2022

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Article Highlights
  • Bitcoin price surges beyond $23,000 but may not hold these levels for a longer time as it is surrounded by the dark clouds of uncertainty

  • The traders appear to have been accumulating stablecoins heavily and hence point out a bearish pressure to mount soon over the markets

Bitcoin price currently appears to have to withstand the upward pressure to a large extent as the price hovers close to the recent highs. After undergoing a steep descending trend for nearly 6 days, the asset attempts to stabalize an upward trajectory without much involvement from bears. But the main concern lies where the bulls do not appear to be aggressive at the moment. 

In a recent update, Tether appears to have resumed with their printing machine again. After halting generating new coins for more than a month, nearly a billion new USDT was minted in the past 4 to 5 days. On the other hand, the USDT price maintained its peg. 

usdt
Source: Messari.io

On the other hand, with the rise in circulation, the crypto sharks appear to have begun accumulating the stablecoins like USDT & USDC heavily. Despite the crypto markets displaying significant strength, yet the sharks prefer to stockpile the stablecoins. Hence indicating disbelief in the current rally which is displaying constant swings on either side. 

sastiment
Source: Santiment

In the last 2 to 3 weeks, the holders holding 10K to 100K of USDT & USDC have been increasing their holdings despite the top 2 cryptos registering highs above $24,000 and $1700. 

Therefore, it can be considered disbelief in the current ongoing price movements and reluctance to buy in. Hence the traders may seek more stability to squash the ‘Wall of Worry’. 

However, in the meantime, Bitcoin’s (BTC) price is assumed to consolidate lower for more time and hence the recent highs at $24,650 may not be tested again in the near future. 

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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