Based on the computing power available on the network, the bitcoin network adjusts the difficulty of finding a block every two weeks. This means that new blocks are added approximately every 10 minutes. The market is showing signs of slowing down, but the miners remaining, particularly those from outside China, will be able to make higher profits in the short term.
Bitcoin is still struggling to break the $34,000 mark. As of 6:50 AM, it was trading at $34,618. ET. Coinbase data shows that bitcoin’s price ranged between $33,197 to $35,909 in the past five days with a 5-day variation of +2.4%.
Pankaj Balani (CEO of the crypto derivatives platform Delta Exchange) wrote that Bitcoin is currently in a consolidation phase, between $30,000 and $42,000, and that it will spend the next few week testing this range on either end. There are not many catalysts that could cause a break in the upside for the near term. However, the weakness in economic data is a concern.
A weakness in the wider markets or a reduction in liquidity could cause bitcoin to drop sharply. This is reflected in options data, with puts trading at an advantage over calls for July and august expiry.
These observations are in line with a general cooling of the market following volatile weeks. The short-term volatility has now fallen to 2-months, reports Norwegian crypto analytics company Arcane Research.
Crypto Whales are still hungry
Analysts are trying to find clearer signals in the wider market amid this relative calm, and crypto whales (individuals/entities with large crypto holdings) are ostensibly purchasing.
Will Clemente, an analyst on the chain, stated that 18 new whales appeared on the blockchain on July 2. The total amount of bitcoin held by whale entities jumped by 82.760 BTC (or $2.87 billion at current price). Clemente writes that the spike “leads to me to believe that we may finally see some new big buyers” (a bullish signal).
A new survey from Nickel Digital Asset Management, a $200 million U.K. cryptocurrency hedge fund, revealed that 82% institutional investors and wealth mangers from the U.S.A.E., U.K. and France were interested in investing in cryptocurrencies. Who are currently exposed to cryptocurrencies or digital assets and expect to increase their crypto holdings in 2023.
However, not everyone believes we are out the bearish woods. Jarvis Labs is a trading and analytics platform that employs crypto economist Ben Lilly. ‘While it would not surprise us to see the price rise, we are leaning toward downside movements in the short term.
This means that even if the price rises, we believe it will lose momentum and eventually retest the $32-30,000 support.
Other top cryptocurrency coins like Ethereum, BNB and Cardano are also up by 4.2% to 9.2%, 2.8% to 2.1% and 2.1% respectively.