Bulls seem largely absent from the market after Bitcoin’s price experienced yet another drop to the critical support level of $32,000. Back in June, it slipped under $30K for a moment. This was followed by another slip below the $32K mark which was seen as a negative sign by many experts.
As inflation in the USA surges, Bitcoin is not exactly showing inflation-proof qualities. The leading cryptocurrency by market volume has continued its weekly drops, with only a few small runs in between. Ethereum’s prices has been dropping as a result as it builds momentum ahead of the London Hard Fork.
It’s a tough time to be a Bitcoin investor, yet experts are adamant that it’s time to buy.
Tight Compression Range
All technical indicators indicate that Bitcoin’s compression range is tight. It has a token to trade in consistent range following big price moves, as was the case in 2018-2019. Previous instances of this range lasted for 132 days, while the current compression range is currently on 55 days.
The compression is expected to continue into the coming weeks and possibly months. This isn’t necessarily bad news – as a matter of fact, it might give Bitcoin the fuel it needs to make a jump by the end of the year.
There are other reasons for the recent price drops. Bitcoin was always advertised as inflation-proof, yet that hasn’t been the case recently. US inflation has soared to new heights this week, hitting highs previously unrecorded for 13 years. That has obviously affected Bitcoin’s price, so it remains to be seen if it truly is inflation-proof.
Non-fungible tokens have been soaring recently even if the Bitcoin market is experiencing hard times. It’s been dragging down altcoins with it, but NFT tokens such as Axie Infinity have been soaring. It may be a sign of new things to come, with NFTs being all the rage right now.
Altcoins Hit the Hardest
The altcoins market has Bitcoin to “thank” for the recent hardships. BTC has been dragging it down with its price slips, putting it in a bad position. Ethereum’s price is suffering the most, with USDT, Cardano, Ziliqa, and other altcoins also suffering.
While the market is in the red, another type of altcoins continues to thrive – NFT-enabled cryptos. Axie Infinity and Small Love Potion’s prices has jumped over 30% as new users embrace the daily income opportunities provided by non-fungible tokens. It’s NFT season right now, and NFT-enabled tokens are enjoying a great run.
The overall cryptocurrency market stands at over $1.3 trillion, with Bitcoin’s dominance at over 46%. There’s no reason for fear in today’s market, although recent price developments have made some investors rethink their next moves. According to experts, this is completely normal. The price slips and downward trend is expected to continue for Bitcoin in the coming period. However, everyone’s expecting a boom by the end of the year. The expected bull run should take Bitcoin to new heights and possibly raise its dominance rate at the same time.